Unified Power Private Limited Vs Bharat Heavy Electricals Limited — Arbitration | Delhi HC (2025)

Unified Power Private Limited Vs Bharat Heavy Electricals Limited — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

Appointment of Ms. Justice Shalinder Kaur, former Judge of this Court, as Sole Arbitrator to adjudicate the disputes between the parties; arbitral proceedings to be held under the aegis of DIAC; Arbitrator's fee to be fixed per DIAC (Administrative Cost & Arbitrators' Fees) Rules 2018; disclosure under Section 12 of the 1996 Act required before entering upon reference; merits left open.

Issue for consideration

Whether an independent Arbitrator should be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996 read with Section 151 CPC to adjudicate the disputes between the parties arising out of the Contract Agreement executed on 30.03.2017. +1 more

Court's answer

Ms. Justice Shalinder Kaur, former Judge of this Court, is appointed as the Sole Arbitrator to adjudicate the disputes between the parties.

Ratio / Principle

Respondent, on instructions, while disputing the case of the Petitioner on merits, does not dispute the existence of the arbitration agreement in the Contract Agreement as an alternate dispute resolution mechanism for adjudication of disputes arising from the said agreement.

Key takeaways

Arbitral proceedings will be held under the aegis of the Delhi International Arbitration Centre (DIAC).ratio¶17
Fee of the Arbitrator shall be fixed as per the fee schedule under the DIAC (Administrative Cost & Arbitrators’ Fees) Rules 2018.ratio¶17
The learned Arbitrator shall give disclosure under Section 12 of the 1996 Act before entering upon the reference.ratio

Detailed headnote1 paragraphs

High Court of Delhi (Ms. Justice Jyoti Singh), ARB.P. 1286/2025, order dated 19.09.2025: Unified Power Private Limited petitioned under Section 11(6) of the Arbitration and Conciliation Act, 1996 read with Section 151 CPC for appointment of an independent arbitrator for disputes arising out of a Contract Agreement executed on 30.03.2017 for renovation and modernization of boiler and auxiliaries for Unit 12,200 Mw at UPRVUNL Obra TPS. Bharat Heavy Electricals Limited, while disputing the merits on instructions, acknowledged the existence of the arbitration agreement in the Contract Agreement as the ADR mechanism. The Court appointed Ms. Justice Shalinder Kaur, former Judge of the Court, as Sole Arbitrator; proceedings to be conducted under the aegis of DIAC with fees fixed per the DIAC (Administrative Cost & Arbitrators' Fees) Rules 2018; disclosure under Section 12 required before entering upon reference. The Court expressed no opinion on the merits and all rights and contentions were left open; petition disposed of.