Orissa High Court: Reference To Arbitration Can Only Be Compelled When There Is Existence Of An Arbitration Agreement

The Orissa High Court has held that reference to Arbitration can only be compelled when there is existence of an Arbitration Agreement.

The Court was considering a Petition seeking appointment of an Arbitrator in a matter.

The single bench of Acting Chief Justice Arindam Sinha observed, "It is clear from above reproduced clause 19 in the agreement that reference was to be to OERC. Capacity of OERC to adjudicate was not mentioned in the agreement. The authority considered the question of reference by its said order dated 3rd June, 2023 and concluded that the statute does not permit it to enter into the reference. In the circumstances, contention of Mr. Dash that the agreement clause stands worked out, must be accepted."

The Petitioner was represented by Advocate Avijit Pal while the Respondent was represented by Advocate Bijay Kumar Dash.

Counsel for the Petitioner insisted on Clause 19 in the agreement being an arbitration clause and submitted there has been no response to the commencement notice issued by his client,

He relied on the judgement of the co-ordination bench in M/s. Enzen Global Solutions Pvt. Ltd. v. Central Electricity Supply Utility of Odisha to submit that similar clause was in the agreement between parties therein. It was further submitted that when the referred authority refused to adjudicate, the Court appointed the Arbitrator.

On the other hand, Counsel for the Respondent submitted that his client had agreed to refer disputes to Orissa Electricity Regulatory Commission (OERC) and when it denied to initiate the process, the said Clause worked out.

The Court was of the view that there is no existence of an arbitration agreement in the matter in hand.

The Petition was accordingly dismissed.

Cause Title: M/s. Andhavarapu Power Projects (P) Limited, Andhra Pradesh vs. Odisha Renewable Development Agency

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