LAWS(DLH)-2011-5-322

INDRAPRASTHA GAS LTD Vs. SAP INDIA SYSTEMS

Decided On May 19, 2011
Indraprastha Gas Ltd. Appellant
V/S
Sap India Systems, Applications Respondents

JUDGEMENT

(1.) This petition has been preferred by the Petitioner under Section 11 of the Arbitration and Conciliation Act, 1996 to seek appointment of a Sole Arbitrator for settlement of disputes between the parties. The Petitioner is Indraprastha Gas Ltd. (IGL); Respondent No. 1 is SAP India, Systems, Applications and Products in Data Processing Pvt. Ltd. also known as SAP India Ltd; Respondent No. 2 is Tata Consultancy Services (TCS). The Petitioner had issued a Request for Proposal (RFP) for supply and implementation of Enterprise Resource Planning (ERP) package at IGL. This tender document contains an arbitration clause in Clause 3.21, which reads as follows:

(2.) The Respondent s formed a consortium vide consortium agreement dated 14.5.2004 where under the Respondent No. 2-TCS was authorized to market and distribute SAP Software in India. TCS was authorized to quote for SAP products for IGL's tender in question for supply and implementation of ERP package at IGL.

(3.) The tender document defined the expression ladder' to mean both ERP Software Vendor and the System Implementation (SI) partner. It is not disputed that, in the present case, the ERP Software Vendor was Respondent No. 1, whereas System Implementation Partner was Respondent No. 2. The consortium/partnership/joint venture is defined as an association of two or more parties participating jointly in bidding and execution of the contract.