NTPC LTD Vs. AMAR INDIA LTD

JUDGEMENT

(1.) The present petition has been filed with the following prayers:

(2.) The short legal issue that arises for consideration in this petition is, whether the Arbitrator has become de jure unable to perform his functions as he having revised his fee from the agreed fee as per the NTPC Schedule of fees for Arbitrators fixed by Circular No. 689, dated April 04, 2014 ('Circular', for short), as mentioned in the appointment letter dated March 03, 2017, to the fee provided under Fourth Schedule to the Arbitration and Conciliation Act, 1996 ('Act', for short), by his order dated September 29, 2019. The arbitrator also dismissed the petitioner's application for recall of the said order vide a subsequent order dated December 06, 2019.

(3.) Before dealing with the issue, I shall, in brief, state the facts leading to the present dispute. The petitioner vide letter of award dated February 20, 2013 had awarded the work of Site Levelling & Infrastructures Package for NTPC Lara Project in favour of the respondent, M/s AMR India Ltd. Hyderabad. Owing to various breaches as alleged by the petitioner, the Contract was terminated vide a letter date December 12, 2016. Subsequently, dispute resolution clause, Clause 7 under the GCC, was invoked by the respondent on January 02, 2017. Respondent by means of another letter dated February 06, 2017 specifically requested the petitioner for appointment of Sole Arbitrator as provided under Section 29B of the Act as against Clause 7 which mandated for constitution of an Arbitral Tribunal consisting of three Arbitrators. A sole Arbitrator, from the list of approved Arbitrators maintained by the petitioner, was appointed by the Chairman and Managing Director of petitioner for adjudicating the disputes and differences vide a letter dated March 03, 2017 ('Appointment Letter', for short), stipulating that the same shall be conducted in terms of the 'Fast Track Procedure' under Section 29B of the Act and that the fees to be governed as per the Circular.