G. KAPOOR Vs. REACON ENGINEERS PVT. LTD.

JUDGEMENT

(1.) This petition has been filed by the petitioner under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of an Arbitrator. The facts as noted from the petition and contended by Mr. Kapur are, the petitioner is the sole proprietor of M/s. JPE International and is engaged in business of contracts for electrical work, structural and other business related to electrical works.

(2.) The petitioner and the respondent entered into an agreement for carrying out internal electrical works for renovation and expansion of ESIC Hospital, Okhla Project. The main contract was between ESIC and TCIL. A further sub-contract was between the respondent and TCIL. It is the case of the petitioner and contended by Mr. Kapur that the respondent has awarded the contract to the petitioner on back-to-back basis vide LOI dated September 18, 2013 and the total value of the contract was for Rs.5.92 Crores. That certain disputes arose between the petitioner and the respondent inasmuch it is alleged that complete payments have not been released by the respondent to the petitioner.

(3.) According to Mr. Kapur, the main contract between the respondent and the TCIL / ESIC contains an arbitration clause. It is also his case, that clause 2 of the LOI dated September 18, 2013 addressed to the petitioner by the respondent clearly states that the scope of work, commercial and technical terms and conditions including payment terms of contract between the petitioner and the respondent is on back-to-back basis with the main contract between the ESIC and TCIL and as such all the terms and conditions will apply to the agreement between the petitioner and the respondent including the arbitration clause which reads as under: