MANU/SC/0216/2024

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 4417-4418 of 2024 (Arising out of Special Leave Petition (Civil) Nos. 7573-7574 of 2021)

Decided On: 19.03.2024

Appellants: NBCC (India) Limited Vs. Respondent: Zillion Infraprojects Pvt. Ltd.

Hon'ble Judges/Coram:
B.R. Gavai and Sandeep Mehta

JUDGMENT

B.R. Gavai, J.

1. Leave granted.

2. The present appeals challenge the interim order dated 12th March 2021 and final judgment & order dated 9th April 2021, passed by the learned Single Judge of the High Court of Delhi (hereinafter, "High Court"), in Arbitration Petition (Arb. P.) No. 44 of 2021, whereby the High Court allowed the application Under Section 11(6) of the Arbitration & Conciliation Act 1996 (hereinafter referred to as, "the Arbitration Act") and appointed the Sole Arbitrator to adjudicate the dispute between the parties to the present lis, arising from the Letter of Intent dated 4th December 2006.

3. Facts, in brief, giving rise to the present appeals are as follows:

3.1 The Appellant, NBCC (India) Limited (Formerly known as National Buildings Construction Corporation Ltd.), is a Public Limited Company and Government of India undertaking, engaged in construction of power plants and other infrastructure projects on EPC and/or PMC basis.

3.2 The Respondent, M/s. Zillion Infraprojects Pvt. Ltd. (Formerly known as Durha Constructions Pvt. Ltd.), is a Private Limited Company, engaged in the construction and infrastructure sector.

3.3 The Appellant issued an invitation for tender, being NIT No. 01-WEIR/06 dated 3rd November 2006, for "Construction of Weir with Allied Structures across river Damodar at DVC, CTPS, Chandrapura, Dist - Bokaro, Jharkhand - Package "A" (hereinafter referred to as, "Construction of the Weir"), containing inter-alia, the General Conditions of Contract, Special Conditions of Contract, Bill of Quantity, etc. (collectively referred to as, "Tender Documents").

3.4 In response to the aforementioned tender, the Respondent submitted its Techno Commercial Bid on 16th November 2006.

3.5 On fulfilment of the tender criteria, vide Letter of Intent No. AGM/RAN/CTPS-AWARD/06/1660 dated 4th December 2006, the Appellant awarded the contract for Construction of the Weir to the Respondent for a total value of Rs. 19,08,46,612/-.

3.6 With the passage of time, certain disputes arose between the parties to the present lis & as a result, the Respondent issued a notice dated 6th March 2020, in terms of Clause 3.34 of Section III Volume II of the Tender Documents (GCC), thereby invoking arbitration and further seeking consent of the Appellant for the appointment of a former Judge of a High Court, as Sole Arbitrator.

3.7 The Appellant did not respond to the aforementioned notice invoking arbitration, so the Respondent filed an application at the High Court Under Section 11(6) of the Arbitration Act.

3.8 Vide interim order dated 12th March 2021, the High Court allowed the Arbitration Petition and proposed the appointment of a former Judge of the High Court, as the Sole Arbitrator, to adjudicate the dispute between the parties.

3.9 Vide final judgment & order dated 9th April 2021, the High Court confirmed the proposed appointment of the former Judge of the Delhi High Court, as the Sole Arbitrator.

3.10 Aggrieved by the orders of the learned Single Judge of the High Court, the Appellant filed the present appeals thereby challenging both the interim order and the final judgment & order.

3.11 This Court vide order dated 23rd July, 2021, issued notice and stay of further proceedings of the arbitration was granted.

4. We ha........