Centaurus Green Energy Private Limited v. PDM Educational and Charitable Trust

1. The present Petition under Section 11(5) read with Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the “Act, 1996”) has been filed on behalf of the petitioner seeking appointment of a sole Arbitrator for adjudication of the disputes having arisen between the parties.

2. It is submitted in the petition that the respondent entered into a Power Purchase Agreement dated 27.10.2017 with the petitioner for design, manufacturing, supply, erection, testing and commissioning including operation and maintenance of 100k Wp Rooftop Solar Photovoltaic Power System for 25 years. The petitioner under the said Agreement installed and commissioned Rooftop Solar Photovoltaic Power System at the premises of the respondent. The petitioner accordingly raised and delivered to the respondent its invoices towards the supply of electricity. However, as per the Digitally Statement of Account maintained by the petitioner, the respondent failed to make the payment of Rs.8,98,605/- to the petitioner.

3. The petitioner served a Notice of Termination dated 04.08.2022 upon the respondent for termination of Power Purchase Agreement and to pay the Purchase Price amounting to Rs.63,00,000/- along with dues of Rs.8,98,605/- towards pending invoices along with interest of 15% per annum from the date of default till actual payment. The notice of termination was not replied by the respondent. The petitioner vide Notice dated 12.07.2023 invoked arbitration under clause 17.7(c) of the Power Purchase Agreement and requested the respondent for appointment of Sole Arbitrator. Despite the receipt of the said notice, the respondent ignored to appoint a sole arbitrator for adjudication of dispute between the parties.

4. Submissions heard.

5. In view of valid arbitration clause 17.7(c) in the Power Purchase Agreement, without prejudice to the rights and contentions of the parties, the present petition is allowed and Mr. Gaurav Sarin, Advocate Mobile No.9810533717 is hereby appointed as the sole Arbitrator to adjudicate the disputes between the parties.

6. The parties are at liberty to raise their respective objections before the Arbitrator.

7. The fees of the learned Arbitrator would be fixed in accordance with the Fourth Schedule of the Act, 1996 or as consented by the parties.

8. This is subject to the Arbitrator making necessary disclosure as under Section 12(1) of the Act, 1996 and not being ineligible under Section 12(5) of the Act, 1996.

9. The arbitration shall be conducted under the aegis of Delhi Digitally International Arbitration Centre, Delhi High Court.

10. The parties are directed to contact the Arbitrator within one week of being communicated a copy of this Order to them by the Registry of this Court.

11. Accordingly, the present petition is disposed of in the above terms.

JUDGE MAY 14, 2024 va Digitally