Case: M/s. TBEA Shenyang Transformers Group Co. Ltd Vs. M/s. Alstom Projects India Ltd

2. By virtue of this petition, the petitioner company, incorporated in Republic of China, has prayed that an Arbitrator be appointed so as to arbitrate the dispute which the petitioner company is having with the respondent company, incorporated under the provisions of the Companies Act, 1956, in India.Being aggrieved by the order, whereby an application under Section 9 of the Act had been rejected, the petitioner company had approached the High Court of Gujarat at Ahmedabad. The said appeal filed before the High Court had also been dismissed on 27.09.2013 and being aggrieved by the order passed by the High Court dismissing the appeal, the petitioner had filed Special Leave Petition before this Court which had also been dismissed on 07.10.2013 as this Court did not find any infirmity in the order of the High Court.In the aforestated circumstances, the petitioner company was constrained to file an application under Section 9 of the Act in the District Court at Vadodra, State of Gujarat, but the said application had been dismissed on 02.09.2013.

Reasoning:
10. Upon hearing the learned counsel for the parties and going through the provisions of the contract, I am of the view, that there is a dispute between the parties which requires to be resolved by an Arbitrator under the provisions of the Act.11. There is no dispute to the effect that there is a clause with regard to arbitration in the contract which had been entered into between the parties on 24.12.2007.As there was a dispute with regard to quality of material supplied, some letters were exchanged between the parties and the representatives of both the parties had also met for the purpose of resolving their disputes but unfortunately, the disputes with regard to quality of the material supplied could not be resolved and ultimately the respondent company had to invoke the bank guarantee.13. In the aforestated circumstances, it cannot be said that there is no dispute between the parties and therefore, in my opinion, an Arbitrator is required to be appointed as per the provisions of Section 11(6) of the Act.