SATYADHARA COMMUNICATIONS PVT. LTD. Vs. INDIASIGN PVT. LTD.

JUDGEMENT

(1.) This petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') has been filed by the petitioner challenging the Arbitral Award dated 08.04.2016 passed by the Sole Arbitrator adjudicating the disputes that have arisen between the parties in relation to the Agreement dated NIL executed between the parties whereby the respondent had granted the use of its Teleport services on "INTELSAT, IS-17 Satellite" to the petitioner.

(2.) The disputes between the parties arose out of alleged nonpayment of the charges for the use of such facility by the petitioner primarily on account of the variations in the foreign exchange. The respondent, claiming that an amount of Rs. 63,25,958/- remained outstanding from the petitioner, suspended the services being provided to the petitioner on 15.10.2014. The petitioner in return by an e-mail dated 22.10.2014, terminated the Agreement, which led to the disputes between the parties.

(3.) The learned counsel for the petitioner submits that in terms of Clause 5.1 of the Agreement only the respondent has a right to terminate the Agreement, that too, after giving one month's notice in advance to the petitioner. The petitioner has no right to terminate the Agreement. He further submits that in terms of Clause 10 of the Agreement, which is the Arbitration Agreement between the parties, only the disputes with regard to obligations of the parties upon termination of the Agreement can be referred to arbitration. In the present case, as the termination of the Agreement itself is invalid, the Arbitrator has no jurisdiction to entertain the disputes.