M/S Ambit Switchgear India Pvt. Ltd. Vs M/S Bharat Heavy Electricals Limited

M/S AMBIT SWITCHGEAR INDIA PVT. LTD. (DEMERGED FROM AMBIT SWITCHGEAR PVT. LTD.) C-50, PHASE-II, NOIDA UTTAR PRADESH - 201305 REPRESENTED BY ITS DIRECTOR MR. RAKESH JAIN

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…PETITIONER

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(BY SMT. VEENA J KAMATH, ADVOCATE)

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AND:

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Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA

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M/S BHARAT HEAVY ELECTRICALS LIMITED PROF. C.N.R RAO CIRCLE, SCIENCE INSTITUTE POST, MALLESWARAM, BANGALORE-560012 REPRESENTED BY ITS HEAD

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…RESPONDENT [BY SRI. ABHEEN SAHA, ADVOCATE (ABSENT)] THIS CMP IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 FOR APPOINTMENT OF ARBITRATOR UNDER THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO (a) APPOINT A SOLE ARBITRATOR TO ADJUDICATE THE DISPUTES BETWEEN THE PETITIONER AND THE RESPONDENT AS PER THE CLAUSE NO.32.0 OF THE GENERAL CONDITIONS OF CONTRACT AND PURCHASE ORDER DATED 25.05.2018 AND AMENDMENTS THERETO BETWEEN THE PETITIONER AND THE RESPONDENT AS PER ANNEXURE – A.

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NC: 2025:KHC:10963 CMP No. 606 of 2024

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THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE ASHOK S.KINAGI

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ORAL ORDER

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This Civil Miscellaneous Petition is filed under section

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11(6) of the Arbitration And Conciliation Act, 1996, for the appointment of an Arbitrator to resolve the dispute between the parties as per clause 32.0 of the General Conditions of the contract and Purchase Order dated 25.05.2018 vide Annexure-A.

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The brief facts, leading rise to the filing of this petition are as follows :

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The respondent issued a tender for the inter-alia supply of electrical panels. M/s. Ambit Switchgear Private Limited was the successful bidder and awarded the tender on 10.04.2018. Consequently, the respondent issued a purchase order dated 25.05.2018 for the supply of electrical panel items, as mentioned therein. The said purchase order was amended on three occasions, i.e., on

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NC: 2025:KHC:10963 CMP No. 606 of 2024

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31.07.2019, 03.09.2020 and 19.04.2021. The said company was subsequently demerged into the petitioner company. Hence, the petitioner has stepped into the shoes of the said company.

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The petitioner had supplied the goods and undertaken all the works as per the tender conditions and the Purchase Order. Yet, the respondent has not cleared the pending payments to the petitioner. The respondent has made a partial on-account payment. The petitioner invoked the arbitration clause vide notice dated 4.10.2024 seeking reference of disputes to Arbitration. After the receipt of the notice, the respondent did not clear admitted dues and did not provide any response to the petitioner’s request for the appointment of an Arbitrator. Hence, a cause of action arises for the petitioner to file a petition for appointment of an Arbitrator.

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Heard the arguments of the learned counsel for

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the petitioner, and the learned counsel for the respondent.

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NC: 2025:KHC:10963 CMP No. 606 of 2024

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Learned counsel for the petitioner submits that

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the respondent issued a Purchase Order dated 25.05.2018 for the supply of electrical panel items as mentioned therein. Under the work order, the petitioner had supplied the electrical panels to the respondent. The respondent did not pay the outstanding amount. The petitioner issued an arbitration notice dated 04.10.2024 invoking the arbitration clause. The said notice was duly served, but the respondent did not reply to the arbitration notice. He submits that there is an arbitration clause to resolve the dispute between the petitioner and respondent as per clause 32.0 of the General Conditions of Contract and Purchase Order dated 25.05.2018. Hence, prays to allow the petition.

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Though, sufficient opportunity was granted to the learned counsel for the respondent, the learned counsel for the respondent remained absent.

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Perused the records, and considered the submissions of the learned counsel for the petitioner.

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NC: 2025:KHC:10963 CMP No. 606 of 2024

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The point, that arises for my consideration is as

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follows:

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‘Whether the petitioner has made out a ground to refer the matter to the Arbitrator as per clause 32.0 of the General Conditions of contract and Purchase Order dated 25.05.2018 and amendment thereto between the petitioner and respondent as per Annexure-A as per the provisions of Arbitration And Conciliation Act, 1996?’

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The respondent issued a tender for the supply of electrical panels. M/s. Ambit Switchgear Pvt., limited was the successful bidder, and was awarded the tender on

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10.04.2018. Consequently, the respondent issued a Purchase Order dated 25.05.2018 for the supply of electrical panel items mentioned therein. The said Purchase Order was amended on three occasions i.e., 31.07.2019, 03.09.2020 and 19.04.2021. The petitioner

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has produced the Purchase Order at Annexure-A. The respondent did not pay the pending bills. The petitioner sent the materials and the other correspondences to release the on account payment. The respondents did not

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6 - NC: 2025:KHC:10963 CMP No. 606 of 2024

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release the pending bills. The Respondent vide email dated 17.10.2024, confirming that they will process the payment, and sought for certain details as mentioned therein. The respondent sent an email dated 17.10.2024, to ignore the list of requirements mentioned in the email dated 17.10.2024. The petitioner has issued a notice under Section 21 of the Arbitration and Conciliation Act invoking the arbitration clause as per clause 32.0 of the General Conditions of contract and Purchase Order dated 25.05.2018. The respondent did not reply to the notice issued under Section 21 of the Arbitration and Conciliation Act, 1996.

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I have perused the Purchase Order. There is an arbitration clause, which reads as under:

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32.1: Except as provided elsewhere in this Contract, in case amicable settlement is not reached between the parties, in respect of any dispute or difference; arising out of the formation, breach, termination, validity or execution of the Contract; or, the respective rights and liabilities of the parties; or, in relation to interpretation of any provision of

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the contract; or, in any manner touching upon the contract, then, either party may, by a notice in writing to the other party refer such dispute or difference to the sole arbitration of an arbitrator appointed by head of the BHEL Unit/Region/Division issuing the Contract.

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Admittedly, there is an arbitration clause in the Purchase Order. The dispute between the petitioner and respondent arises out of the Purchase Order, and there is an arbitration clause. Admittedly, a dispute has arisen between the petitioner and respondent regarding the payment. Thus, the petitioner has made out a ground to refer the matter to the arbitrator to resolve the dispute between the parties. In view of the above discussion, I answer the point for consideration in the affirmative.

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Accordingly, I proceed to pass the following:

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ORDER

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i. The Civil Miscellaneous Petition is allowed.

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ii. The Hon’ble Justice Sri H.G Ramesh, former judge of High Court of Karnataka, is appointed as an Arbitrator to resolve the

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NC: 2025:KHC:10963 CMP No. 606 of 2024

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dispute between the parties in terms of clause 32.1 of General Conditions of contract as per the provisions of Arbitration And Conciliation Act, 1996.

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iii. The Office is directed to forward the copy of this order to the learned Arbitrator and the Arbitration And Conciliation Center,

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Bangalore.

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SD/(ASHOK S.KINAGI) JUDGE

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sks

M/S Ambit Switchgear India Pvt. Ltd. v. M/S Bharat Heavy Electricals Limited

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M/S Ambit Switchgear India Pvt. Ltd. v. M/S Bharat Heavy Electricals Limited

Case brief

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