This agreement made on 6th of June 2020 between M/s NAKSU SHAKA ENERGY CORPORATION (NSEC) incorporated in INDIANAA, SOUTH ASIA(hereinafter referred to as the First Party) and M/S PUMA RENEWABLE ENERGY ETHOPIANNA CORPORATION (PREEC) incorporated in EIRTREAA CITY, ETHOPIANNA, EAST AFRICA(hereinafter referred to as the Second Party)
AND WHEREAS both the parties have finalized the terms of Energy Procurement Construction and Management Contract (EPCMC) and put those terms and conditions agreed in writing.
AND WHEREAS in the event of any dispute, difference or question arising
out of or in respect of EPCMC the same shall be referred to the arbitrators and settled by the way of arbitration.
NOW both the parties hereby mutually agree as follows:-
1. Both the parties would like to submit to arbitration(venue of which is
in Bangkokk Thailandd) in case of any dispute, difference, controversy or claim arising out of and in connection with the EPCMC(the aforementioned contract) save to the extent provided within the clauses itself. 2. The party initiating recourse to the arbitration to be referred as “the claimant” shall give to the other party to be referred as “the respondent” a notice of arbitration of 30 days which shall include: a) A demand that the matter be referred to arbitration, b) A reference to this arbitration clause; and c) A description of the nature and circumstances of the dispute giving rise to the claims and a statement of relied facts and so far as possible, an indication of any amount claimed 3. The venue of arbitration shall be Bangkokk Thailandd. 4. The seat of arbitration shall be New Delhi. 5. The dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration in accordance with the arbitration rules of Singapore International Arbitration Centre (SIAC Rules) for the time being in force, which rules are deemed to be incorporated by reference in this clause 6. The governing law shall be the Arbitration and conciliation Act 1996 followed in India. 7. The Tribunal shall comprise of five arbitrators. 8. Each party shall appoint two arbitrator. The two party appointed arbitrators will then appoint the chairman. If the arbitrators cannot agree on one name then ABC will be empowered to appoint the arbitrator. 9. In the event of the death or resignation of any of the arbitrator during the course of the proceedings unless the parties agree otherwise a replacement arbitrator shall be appointed by the chairman of Nani Phalkiwala Arbitration Centre. 10. The Head Arbitrator appointed by the parties shall be a retired judge of any country’s court. 11. The language of the arbitration shall be English. 12. The fees of the arbitrators has been agreed to be paid in equal proportion by both the parties. 13.Save as specifically provided in this agreement, no information concerning this agreement or the arbitration may be unilaterally disclosed by any party to a third party unless required to do so under any applicable law or by any competent governmental or statutory authority or pursuant to the rules or regulations of any relevant regulatory, administrative or supervisory body (including, without limitation, any relevant stock exchange or securities regulator). 14. It has been mutually agreed not to arbitrate for any defective construction arising out of the aforementioned contract. 15. The parties would be governed by the limitation law of India. 16. The award arising out of it shall be final.
Signed By – X(Representative of Party A)
On 6th June 2020
Signed By – Y (Representative of Party B)
On 6th June 2020
Reasoning supplied 1. At the very outset the intention of the parties to willingly settle the disputes by arbitration has been laid as according to the Garware Wall Ropers Ltd. vs Coastal Marine Constructions decided by the Hon’ble Supreme Court. 2. Section 7 of the arbitration and conciliation act of 1996 which governs the arbitration agreement and defines the parameters of it has been applied. 3. Section 10 of the act which defines the number of arbitrators, procedure and manner of appointment has been used. 4. The number of arbitrators has been kept at five as the amount is significant and issues may be diverse and complex. Therefore the appointment of a retired or sitting judge has also been urged for to take care and obviate the problem of the issues being complex and diverse in nature. 5. The seat being New Delhi will give the parties not only an unbiased result but also secure the result expeditiously. One of the most important objectives of arbitration is speedy and expeditious disposal of the arbitration cases. 6. Seat and venue is according to Section 20. 7. Section 22 defines language for the purpose of arbitration. 8. Section 30 which talks about settlement clause have been used. 9. The matter will be kept confidential this is also a very important and significant aspect of arbitration that the case has some secrecy which makes it different from the normal courtroom hearings. 10. The scope of the arbitration has been defined and the part of which the parties have mutually agreed to leave out of the arbitration although arising from the same contract has been saved from arbitration and will follow a different method of conciliation.