NDLI: Wapcos Ltd. Vs. Salma Dam Joint Venture & Anr.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Appointment of Arbitrators s.11(6) Arbitration and Conci liation Act 1996
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Arbitration and Conciliation Act, 1996 (26 of 1996)
Case(s) Referred	Referred Case 0 Referred Case 1
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Arbitration and Conciliation Act, 1996 – s.11(6) – Appointment of Arbitrators – SDJV, a joint venture of M/s. SSPPL and M/s. AIL was formed – SSPPL was nominated as a ‘Lead Partner’ of SDJV with 95% share as compared to 5% of AIL – SDJV was the successful bidder and that was followed by a Contract Agreement dated 09.03.2006 between the WAPCOSL and SDJV for the implementation of the work on “The Reconstruction, Rehabilitation and completion of Salma Dam Project” in Afghanistan – Several documents were signed including Conditions of Particular Applications (CoPA) – Cl.20.1 thereof dealt with Contractor’s claim and Cl.20.6 dealt with Arbitration – Subsequent to this, the rates of some of the items were revised, which raised the total consideration of the agreement – Thereafter, SDJV and WAPCOSL signed a revised agreement for the rates, referred to as the Amendment of Agreement (AOA) dated 09.06.2015 – Despite signing of AOA, SDJV raised certain claims before the Engineer of WAPCOSL – Subsequent to execution of AOA, dispute arose between the JV partners – On 21.09.2016, AIL revoked Powerof- Attorney executed in favour of SSPPL, which authorized it to appoint arbitrator on behalf of AIL – However, SSPPL filed petition on behalf of SDJV against WAPCOSL u/s. 11(6) of the Act, 1996 – The said petition was allowed by the High Court and the arbitrator was appointed – Aggrieved, WAPCOSL filed special leave petition before the Supreme Court – AIL asserted before the Court that it did not give consent to SSPPL for appointment of arbitrator or to file petition u/s. 11(6) of the Act, 1996 – Consequent to which, the order of the High Court was set aside and parties were relegated before the High Court for reconsideration of all the aspects – The High Court once again allowed the said arbitration petition and appointed a sole arbitrator and held that SSPPL had authority under the JV as well as Contract Agreement to represent SDJV, as a leading partner to take recourse to arbitration – On appeal, held: The Cls 1.2 and 1.3 of Section-01 of the AOA made it clear that no claims will be raised by the Contractor on any of the pending/settled claims/other claims resulting out of correspondences made and there will be “no arbitration” for the settlement of claims – Neither SDJV nor SSPPL have disputed the execution of AOA – The terms and conditions specified in AOA leave no manner of doubt that the arbitration agreement was done away with – Having chosen to adopt that path, it is not open to the contractor to now take recourse to arbitration process or to resurrect the claim which has been resolved in terms of the amended agreement, after availing of steep revision of rates being condition precedent – Resultantly, the impugned judgment of the High Court set aside.
Judge	Hon'ble Mr. Justice A.M. Khanwilkar
Neutral Citation	2019 INSC 1249
Petitioner	WAPCOS LTD.
Respondent	SALMA DAM JOINT VENTURE & ANR.
SCR	[2019] 17 S.C.R. 193
Judgement Date	2019-11-14
Case Number	8595

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