WAPCOS LTD Vs. SALMA DAM JOINT VENTURE

JUDGEMENT

(1.) Leave granted. These appeals take exception to the judgment and order dated 25.01.2019 passed by the High Court of Delhi at New Delhi in Arbitration Petition No.810 of 2016, whereby the High Court allowed the Arbitration Petition purportedly filed by respondent No. 1 Salma Dam Joint Venture, under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short, "the Act") and appointed a sole Arbitrator.

(2.) Briefly stated, the Ministry of External Affairs (for short, "MEA") and the appellant in the leading appeal, Water and Power Consultancy Services (India) Limited (for short, "WAPCOSL"), a Public Sector Undertaking, entered into an agreement, dated 29.11.2004, for the implementation of the work on "the Reconstruction, Rehabilitation and completion of Salma Dam Project (3x14 MW), Afghanistan, Package III: Main Civil and HydroMechanical Works" (for short, "project"). The appellant (WAPCOSL), was given the responsibility to provide financial, administrative and contractual management services for the MEA. Even though MEA was to provide the finances, the same was to be channeled through WAPCOSL to the successful awardee of the tender.

(3.) The respondent No.1 in both the appeals, Salma Dam Joint Venture (for short, "SDJV") was formed by the M/s SSJV Projects Private Limited (for short, "SSPPL") and M/s Angelique International Ltd. (for short, "AIL") under a Joint Venture Agreement (for short, "JVA") dated 09.09.2005 to submit its bid for the said project. In accordance with the terms and clauses of the JVA, SSPPL was nominated to be the 'Lead Partner' of SDJV with ninetyfive percent (95%) share as compared to five percent (5%) share of AIL. SSPPL was also authorized to invoke arbitration by appointing an arbitrator, make claims, et cetera, on behalf of AIL, by executing a Power of Attorney (for short, "PoA") dated 09.09.2005 in favour of SSPPL, in accordance with Clause 3.3 of the JVA.