SURYADEEP ENGINEERING PRIVATE LIMITED vs NM CONSTRUCTION

Judgment text excerpt

F-J-2-OSCARBP-210-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMMERCIAL ARBITRATION PETITION NO. 210 OF 2024 Suryadeep Engineering Pvt. Ltd. …Petitioner Versus NM Construction …Respondent WITH INTERIM APPLICATION NO. 38622 OF 2024 IN COMMERCIAL ARBITRATION PETITION NO. 210 OF 2024 Mr. Akash Menon, Advocate for the Petitioner. Mr. Shyam Kapadia, a/w Gaurav Jain, Ashwath Reddy, Dhrupad Vaghani, Advocate for Respondent. CORAM: SOMASEKHAR SUNDARESAN, J RESERVED ON: JANUARY 2, 2025 PRONOUNCED ON: JANUARY 10, 2025 JUDGEMENT: (Per, Somasekhar Sundaresan J.) The Controversy: 1. The validity of an award passed by an arbitrator appointed Digitally signed by ASHWINI ASHWINI JANARDAN JANARDAN VALLAKATI VALLAKATI Date: 2025.01.10 13:54:45 unilaterally by the party invoking arbitration under an arbitration +0530 Page 1 of 28 January 10, 2025 Ashwini Vallakati F-J-2-OSCARBP-210-2024.doc agreement that does not envisage unilateral appointment, is under challenge in this Petition under Section 34 of the Arbitration and Conciliation Act, 1996 (“the Act”). For the reasons recorded below, I hold that such Award deserves to be set aside, being a product of a process that is a patent contravention of the Act, and its finely nuanced scheme. Factual Matrix: 2. The factual matrix for adjudication of this petition may be summarized as follows: a) Sometime in 2013, a listed company called Pratibha Industries Limited (“PIL”) was awarded two work orders by the Public Health Engineering Department, Government of Rajasthan. It is a matter of record that PIL is currently under liquidation under the Insolvency and Bankruptcy Code, 2016; b) PIL awarded the Petitioner some part of the work orders awarded by the Government of Rajasthan. The Respondent claims to