SUNSHINE ELECTRICALS v. THE NEW AND RENEWABLE ENERGY DEVELOPMENT CORPORATION OF ANDHRA PRADESH LTD.
ARBAPPL/41/2025 · 2025-12-25
Dhiraj Singh Thakur
body2025
DailyLaw.ai
[ 2025 DAILYLAW 59623 (AP) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 59623 (AP) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
APHC010607742025
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
ARBITRATION APPLICATION NO: 41 of 2025 Bench Sr.No:-27 [3441]
Sunshine Electricals ...Applicant Vs. The New and Renewable Energy Development Corporation of Andhra Pradesh Ltd. ...Respondent
********** Advocate for Applicant: Mr. P.A.K. Yadav appearing vice Mr. Sricharan Telaprolu Advocate for Respondent: None
CORAM : THE CHIEF JUSTICE DHIRAJ SINGH THAKUR DATE : 26th December, 2025. P C :
This is an application filed under Section 11(5) of the Arbitration and Conciliation Act, 1996, seeking the appointment of an arbitrator for purposes of adjudicating the disputes arising out of and in connection with Agreement dated 30.10.2017. 2. The applicant claims to be a proprietary concern and states to have entered into an Agreement dated 30.10.2017 with the respondent- Corporation, inter alia for ensuring supply and installation of energy efficient LED streetlight fixtures complete with all accessories, in four revenue divisions
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of the erstwhile Visakhapatnam District namely, Paderu, Visakhapatnam, Anakapalli and Narsipatnam, as per specifications. 3. The applicant, according to the Agreement, was to replace the conventional streetlights with LEDs of suitable capacities which were indicated more elaborately in Annexure-3 of the said Agreement. The applicant was required to not only install but also maintain the installed LED streetlight fixtures for the contracted 10 year period. 4. The Agreement further envisaged that in the event of a dispute between the parties the same was to be resolved through the mechanism of arbitration in terms of Clause 19.3, which reads as under:
“19.3. Arbitration or Adjudication In the event that the parties are unable to resolve the Dispute through Direct Discussion under Article 19.2, the Parties shall submit the Dispute for arbitration in accordance with the Arbitration and Conciliation Act, 1996. Sole Arbitrator on mutual consent shall be appointed in accordance with the provisions of Arbitration & Conciliation Act, and its subsequent amendments. ii. The arbitration proceedings shall be conducted in the English language only. iii. The cost incurred on the process of arbitration including inter alia the fees of the arbitral tribunal and the cost of the proceedings shall be borne by the parties in equal proportions M/s Sunshine Electricals .Each Party shall bear its own legal fees incurred as of any Dispute under this Article. iv. The arbitrator shall make a reasoned award.
Any Award made by the Arbitral Tribunal shall be final and binding on the
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parties as from the date it is made, and the parties agree and undertake to carry out such Award without delay v. The arbitration proceeding shall be conducted at Vijayawada, Andhra Pradesh. vi. If any dispute goes to the court of law, the jurisdiction of the court shall be the District Court, Vijayawada.”
5. The applicant claims that payments due to it as per the terms and conditions of the Agreement were not made, which forced the applicant to terminate the contract vide communication dated 03.07.2023. 6. Subsequently, the applicant invoked the arbitration clause by serving upon the respondents a notice, dated 11.08.2025, which did not elicit any response from the respondents. 7. Be that as it may, since disputes have arisen between the parties, the same are required to be resolved through the mechanism of arbitration, the present arbitration application is accordingly allowed. Justice G. S. Sistani, former Judge of the High Court of Delhi, is appointed as an Arbitrator, who shall enter upon the reference and adjudicate upon the disputes arising out of and in connection with the Agreement, dated 30.10.2017, and render the Award within the statutory period. The parties shall be free to file detailed claims and counterclaims, before the learned Arbitrator. The learned Arbitrator shall also be entitled to claim the fee in consultation with the parties. 4 HCJ ARBAPPL_41_2025
No order as to costs. Pending miscellaneous applications, if any, in this application, shall stand closed. A copy of this order be communicated to the learned Arbitrator on the address mentioned herein below: Justice G.S.Sistani, M-23, Jangpura Extension, New Delhi – 110014, Mobile:98713 00034 Email:Sistanilaw@gmail.com
DHIRAJ SINGH THAKUR, CJ. SSN