SPML INFRA LIMITED Vs. EAST INDIA UDYOG LIMITED

JUDGEMENT

(1.) This application under Sec. 11 of the Arbitration and Conciliation Act, 1996 has been field for appointment of arbitrator to resolve the dispute between the parties.

(2.) The case of the applicant is that the agreement was entered into between the applicant and the respondent in the form of a supply contract-cum-purchase order dated 10/01/2018. In terms of the purchase order the respondent was required to supply power transformers of prescribed technical specification of SBPDCL and Rural Electrical Corporation to Gaya District of Bihar and the said contract was in nature of the sub-contract by the applicant in favour of the respondent. The allegation of the applicant is that the respondent had acted in breach of the purchase order as a result of which applicant has suffered substantial loss, damages. The purchase order contained the arbitration clause, therefore, applicant had sent the letter dated 23rd of September, 2020 to the respondent invoking the arbitration clause and nominating his arbitrator. Respondent by communication dated 19/10/2020 had refused the prayer for arbitration.

(3.) Submission of the learned Counsel for the applicant is that the purchase order which contained the arbitration clause is undisputed and was duly acted upon and the dispute has arisen between the parties, therefore, in terms of the arbitration agreement arbitrator needs to be appointed. He further submits that this Court has jurisdiction because the seat of arbitration is at Kolkata and even otherwise cause of action has arisen within the jurisdiction of this Court.