Mahanadi Coalfields Ltd & Anr. vs M/S IVRCL AMR Joint Venture
[2022] 7 S.C.R. 522; 2022 INSC 748
Coram: Hon’ble Justice Dr Dhananjaya Y Chandrachud & Hon’ble Justice A S Bopanna
Forum: Hon’ble Supreme Court of India
Case No.: Civil Appeal No. 4914 of 2022
Date of Decision: July 25, 2022
Conclusion

Facts & Background:
- Mahanadi Coalfields Ltd., a subsidiary of Coal India Limited was the Appellant.
- IVRCL AMR Joint Venture, a joint venture of engineering contractors, was the Respondent.
- On 11.10.2010, the Appellant issued an e-tender for the strengthening and widening a coal transportation road at Talcher Coalfields, Orissa. The work order was awarded to the Respondent on 14.12.2011.
- A Contract Agreement was executed between the parties on 30.01.2012, stipulating the work period from 16.01.2012 to 14.01.2015.
- Through letters and notices issued in 2012, 2013, and 2014, the appellant called upon the Respondent to expedite resource mobilisation and adhere to the work schedule.
- The Appellant terminated the work order on 15.05.2014 because the Respondent did not comply with the agreed-upon work schedule.
- On 12.10.2017, the Respondent raised a claim of Rs. 128.65 crores against the Appellant for alleged delays, which the Appellant rejected on 18.12.2017.
- A notice of arbitration was issued under Clause 15 of the Contract Agreement on 09.04.2018. Upon receiving no response, the Respondent filed an application under Section 11(6) of the Arbitration and Conciliation Act, 1996, pursuant to which the High Court of Orissa appointed a Sole Arbitrator on 29.11.2019.
- Hence, the present appeal.
Main Issue:
- Whether the jurisdiction under Section 11(6) of the Arbitration and Conciliation Act, 1996 can be invoked for appointment of arbitrator in the absence of an arbitration agreement?
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