IN THE HIGH COURT OF JUDICATURE OF TELANGANA

AT HYDERABD

ARBITRATION APPLICATION No. OF 2024

BETWEEN:
Danieli India Limited … Applicant

AND

Mishra Dhatu Nigam Limited …Respondent

RUNNING INDEX

S. No. Annexure Description Date P. Nos

1 Court Fee
2 Application under Section 11(6)(c)
of the Arbitration and Conciliation
Act, 1996.
3 Affidavit
4 Written Statement – Appendix-I.
5 Verification Affidavit
6 Appendix-II
7 Annexure-P1 Copy of the Board Resolution 17.11.2022
8 Annexure-P2 Copy of the Contract bearing 28.04.2017
numbers MDN/PUR/CG/5870004 and
MDN/PUR/CG/5870005 dated April
28, 2017.
9 Annexure-P3 Copy of the order passed by 13.09.2023
Additional Special Court in the Cadre
of District Judge for Trial and
Disposal of Commercial Disputes at
Hyderabad, City Civil Court,
Hyderabad dated September 13, 2023
10 Annexure-P4 Copy of the Notice for Arbitration 11.12.2023
 11 Vakalatnama

Date: __. __.2024

Hyderabad Counsel for the Applicant
 APPLICATION UNDER SECTION 11 (6) (c) OF THE ARBITRATION
AND CONCILIATION ACT, 1996
(SPECIAL ORIGINAL JURISDICTION)
IN THE HIGH COURT OF JUDICATURE OF TELANGANA
AT HYDERABD

ARBITRATION APPLICATION No. OF 2024

IN THE MATTER BETWEEN:

Danieli India Limited
having its registered office at
Technopolis, 5th Floor, ‘B’ Wing
Block-BP, Plot No.– IV, Sector – V,
Salt Lake, Kolkata – 700091
Rep. by its Company Secretary Mr. R. Achuthan …Applicant

AND

Mishra Dhatu Nigam Limited,

Government of India Enterprise
Through its Managing Director
P.O. Kanchanbagh, Hyderabad – 500058,
Telangana, India …Respondent

1. Provision under which the : Under Section 11(6)(c) of the

application is filed. Arbitration and Conciliation Act,
1996.
2. Name of the Applicant with : Danieli India Limited having its
complete address. registered office at Technopolis, 5th
Floor, ‘B’ Wing, Block-BP, Plot No.–
IV, Sector – V, Salt Lake, Kolkata –
700091, West Bengal, India. The
Applicant is being represented by its
authorized signatory Mr. R. Achuthan,
Son of Mr. K. Raman
3. Name of the Respondents in : Mishra Dhatu Nigam Limited,
the Arbitration Agreement with Government of India Enterprise
complete address. Through its Managing Director
P.O. Kanchanbagh, Hyderabad –
500058, Telangana, India
4. Names and addresses of the :
Arbitrator already appointed by Not Applicable
the parties.
5. Name and Address of the person : As per Clause 40.1 of the General
or the institution, if any to Conditions of Contract, any dispute(s)
whom any function has been or difference(s) whatsoever arises
entrusted by the parties to the under or out of or in connection with
Arbitration Agreement under the contracts, or in respect of any
the appointment procedure defined legal relationship associated
agreed upon by them. therewith or derived therefrom, the
parties agree resolve/settle the same by
submitting that dispute to arbitration in
accordance with the International
Centre for Alternative Dispute
Resolution (ICADR) Arbitration
Rules, 1996.

The authority to appoint the

arbitrator(s) shall be the International
Centre for Alternative Dispute
Resolution (“ICADR”).

The Applicant has invoked arbitration

and has sent a notice to the
 International Centre for Alternative
Dispute Resolution, however no
response has been received by it till
date.
6. Qualification required if any of :
the Arbitrator by the Agreement Not Applicable
of the parties.
7. A brief Written Statement
describing the general nature of Attached herewith as Appendix -I.
the disputes and the points at
issue:
8. Valuation of the subject matter : The value of the subject matter of the
claim for the purpose of Court fee is
Rs._______ together with interest. A
Court fee of Rs. 2500 is paid.
9. Date of accrual of cause of : The cause of action arose on May 8,
Action 2023 when the Respondent disclosed
the proprietary and confidential
information of the Applicant in the
open market by tender bearing no.
MDN/PUR/58230007/ADVT/079/23-
24, in violation of the contractual
provisions.

The cause of action further arose in

July, 2023 when the Applicant came to
know that such information has been
disclosed and the Applicant sent an
 email to the Respondent to withdraw
the tender from the market.

The cause of action also arose on

September 13, 2023 when the Hon’ble
Additional Special Court in the Cadre
of District Judge for Trial and Disposal
of Commercial Disputes at Hyderabad,
City Civil Court, Hyderabad, was
pleased to grant an injunction
restraining the Respondent from
disclosing the proprietary and
confidential information of Applicant
to any third party or uploading or
sharing the same in violation of the
contracts.

The cause of action also arose on

December 11, 2023 when the
Applicant sent a notice for arbitration
to the Respondent and ICADR.
10. Jurisdiction : As per the provisions of the Arbitration
and Conciliation Act, 1996, this
Hon’ble Court has the jurisdiction to
adjudicate the subject Application as
Clause 41.38 of the General
Conditions of Contract stipulates that
the contracts and all questions,
disputes or differences arising under or
 in connection with the contracts,
subject to the arbitration clause, shall
be subject to the exclusive jurisdiction
of courts at Telangana, India. Further,
the arbitration clause also provides the
place of arbitration as Telangana,
India.
11. Relief or Remedy Sought : Appointment of an Arbitrator under
Section 11(6) (c) of the Arbitration and
Conciliation Act, 1996.

Date: ____. ___.2024

Hyderabad APPLICANT

COUNSEL FOR THE APPLICANT

 IN THE HIGH COURT OF JUDICATURE OF TELANGANA
AT HYDERABD

ARBITRATION APPLICATION No. OF 2024

IN THE MATTER BETWEEN:

Danieli India Limited
having its registered office at
Technopolis, 5th Floor, ‘B’ Wing
Block-BP, Plot No.– IV, Sector – V,
Salt Lake, Kolkata – 700091 …Applicant

AND

Mishra Dhatu Nigam Limited,

Government of India Enterprise
Through its Managing Director
P.O. Kanchanbagh, Hyderabad – 500058,
Telangana, India …Respondent

AFFIDAVIT

I, R. Achuthan Son of K. Raman authorized signatory of the Applicant Danieli

India Limited, having registered office at Technopolis, 5th Floor, B-Wing, Block
– BP, Plot No. IV, Sector – V, Salt Lake, Kolkata – 7000091, West Bengal, India
do hereby solemnly affirm and declare on oath as follows:

1. I am the authorized representative of the Applicant company and I am also

aware of the facts and circumstances of the case and as such I am
competent to swear this affidavit.

The Parties:

2. The Applicant, Danieli India Limited, is a company incorporated under the

provisions of the Companies Act, 1956 having its registered office at
 Technopolis, Block – BP, Plot – IV, 5th Floor, ‘B’ Wing, Sector V, Salt
Lake, Kolkata – 700091. The Applicant is represented by its authorized
signatory Mr. R. Achuthan Son of Mr. K. Raman. Copy of the Board
Resolution dated November 17, 2022 is appended herewith and marked as
Annexure-P1.

3. The Applicant is a globally reputed company in the primary metal industry

providing engineering, contracting and consultancy services in areas of
iron making and steel making at all levels of development, based on
specialized know-how and vast operational experience. The Applicant has
valuable and specialized knowledge and expertise for design and
engineering, fabrication and supply of technological steel structures,
manufacture and supply of plant and equipment.

4. That Respondent is a company incorporated under the Companies Act,

1956 and has its registered office at P.O Kanchanbagh, Hyderabad -
500058, Telangana. The Respondent is a Public Sector Enterprise involved
in the production of steel.

Brief Facts:

5. The Applicant and the Respondent entered into contracts dated April 28,
2017 bearing numbers MDN/PUR/CG/5870004 for Phase I and
MDN/PUR/CG/5870005 for Phase II (hereinafter referred to as
“Contracts”) for setting up Single Stand Reversing 4-HI Wide Plate Hot
Rolling Mill for Rolling of Plates (Phase-I) and Shear, Leveler, Roller
Hearth Furnace, Roller Pressure Quench, Cooling Beds etc and its
Auxiliaries (Phase-II) at the premises of Respondent at Hyderabad. Copy
of the Contracts are appended herewith and marked as Annexure-P2.
6. That in terms of the Contracts, the Applicant had inter alia agreed to
supply, impart and deliver the requisite confidential, proprietary and
copyright protected engineering data, design, drawings, documents etc. in
respect of the plant, equipment and spares, which was within its scope of
work under the Contracts.

7. The Applicant accordingly delivered the requisite engineering data,

designs, drawings, documents, materials, items with their specifications,
etc. (hereinafter referred to as “Proprietary and Confidential
Information”) for engineering, start up and commissioning of the facilities
including details for the operation and maintenance of the project to the
Respondent.

8. The Contracts specifically incorporated clauses relating to protection of

confidentiality and safeguarding intellectual property rights. These
included Clauses 17.10.4, 34.1 and 34.2 of the General Conditions of
Contract (“GCC”), to protect and safeguard the Proprietary and
Confidential Information of the Applicant against any misuse, breach or
wrongful dissemination to any third party, which would survive the
termination of the Contracts.

Clauses 17.10.4, 34.1 and 34.2 of the GCC are reproduced below for
reference:

17.10 Final Drawings

17.10.4 All drawings, specifications, materials and designs, if any,
furnished by the Purchaser or his authorized representatives shall
be treated as confidential and shall be the property of the Purchaser
and shall be returned to the Purchaser upon completion of the work
or upon termination of the Contract. No copies or duplications
thereof shall be retained by the Contractor without the prior consent
of the Purchaser. All drawing, specifications or manuals furnished
by or through the Contractor shall be fully owned by the Purchaser
 who is entitled to use them for all purposes of execution of the
Contract and operation and maintenance of the Plant being subject
to the Contract. However, the registered intellectual property right
for the drawings and documents as stated above furnished by or
through the Contractor shall remain with the Contractor.

34.0 OWNERSHIP OF DRAWINGS AND SPECIFICATIONS

34.1 All drawings, specifications, materials and design furnished by

the Purchaser, Engineer, or their representatives shall be treated as
the strictly confidential property of the Purchaser. All such
drawings, specifications, manuals and other materials shall be
returned to the Purchaser upon the completion of the work under
this Contract. No copies, duplications or Photostats shall be
retained by the Contractor without the consent of the Purchaser.

34.2 All drawings, specifications, and manuals and all specific

designs furnished by or through the Contractor shall be treated as
strictly confidential by the Purchaser, his employees and agents and
shall be the property of the Purchaser who is entitled to use them for
execution of the Contract and operation & maintenance of the plant,
machinery and equipment being subject to the Contract.

9. The Respondent, being the repository of the Proprietary and Confidential

Information of the Applicant was under a contractual obligation in terms
of Clauses 17.10.4, 34.1 and 34.2 of the GCC to protect and safeguard all
Proprietary and Confidential Information of the Applicant which was given
to it, against any misuse, breach or wrongful dissemination to any third
party. The Respondent was also bound to protect the intellectual property
rights of the Applicant including copyright in the designs, drawings,
documents, technical information provided to the Respondent.

10. In July 2023, it came to the notice of the Applicant that Respondent had
floated the Applicant’s drawings in the open market for procurement of
work rolls and other associated parts in tender bearing no.
 MDN/PUR/58230007/ADVT/079/23-24 dated May 8, 2023 (“Tender”).
This Tender contained the Proprietary and Confidential Information of the
Applicant namely its drawings bearing numbers 8.827075.Z (Work Roll
Assembly), 7.240753.S (Work Roll-2 Sheets) and 6.342163.C (Work Roll
Operating Conditions Data Sheet) with respect to work rolls and other
associated parts (hereinafter collectively referred to as “Work Roll
Drawings”).

11. Despite an express declaration of confidentiality and the fact that the Work
Roll Drawings could not be reproduced without the written consent of
Applicant, these drawings which constitute Proprietary and Confidential
Information of Applicant were used and uploaded online by the
Respondent in an unauthorized and unlawful manner – to be viewed by the
public at large.

12. The Applicant was accordingly constrained to file a Petition under Section
9 of the Arbitration and Conciliation Act, 1996 before the Hon’ble
Additional Special Court in the Cadre of District Judge for Trial and
Disposal of Commercial Disputes at Hyderabad, City Civil Court,
Hyderabad for ad-interim orders restraining the Respondent from any
further disclosure or misuse or dissemination of the Proprietary and
Confidential Information of Applicant to any third party and for ad-interim
orders restraining the Respondent from using, uploading or sharing all
Proprietary and Confidential Information of the Applicant on any website,
online platform or any other public platform. On September 13, 2023, the
Hon’ble Court was pleased to grant an injunction restraining the
Respondent from disclosing the Proprietary and Confidential Information
of the Applicant to any third party or uploading or sharing the same in
breach of the Contracts. Copy of order passed by Additional Special Court
in the Cadre of District Judge for Trial and Disposal of Commercial
 Disputes at Hyderabad, City Civil Court, Hyderabad is appended herewith
and marked as Annexure – P3.

13. Subsequently, in terms of Article 9 of the Contracts read with Clause 40 of

the GCC, the Applicant invoked arbitration for adjudication of its disputes
relating to wrongful disclosure of its Proprietary and Confidential
Information by the Respondent. The disputes have to be adjudicated
through arbitration under Article 9 of the Contracts read with Clause 40 of
the GCC, which provides for appointment of arbitrator(s) by the
International Centre for Alternative Dispute Resolution (“ICADR”).

14. Article 9 of the Contracts and Clause 40 of the GCC are reproduced below
for reference:

Article 9 Arbitration (Reference GCC Clause 40)

9.1 This shall be as per Clause 40 of GCC

Clause 40 of the GCC

40.0 ARBITRATION
40.1 Any dispute(s) or difference(s) whatsoever arises under or out of or
in connection with this Contract, or in respect of any defined legal
relationship associated therewith or derived therefrom, the parties agree
resolve/settle the same by submitting that dispute to arbitration in
accordance with the International Centre for Alternative Dispute
Resolution (ICADR) Arbitration Rules 1996.

The authority to appoint the arbitrator(s) shall be the International Centre

for Alternative Dispute Resolution (ICADR).

The international center for alternative dispute resolution will provide

administrative services in accordance with ICADR Arbitration Rules 1996.

The language of the arbitration proceeding shall be English.

The place of arbitration proceedings shall be Telangana, India.

Note: In respect of PSUs/Government organizations, the DPE guidelines

shall be applicable.
 Work under the contract shall be continued by the contractor during the
arbitration proceedings, unless otherwise directed in writing by the
Purchaser or unless the matter is such that the work cannot possibly be
continued until the decision of the arbitrators is obtained, and save as those
which are otherwise expressly provided in the Contract, no payment due
or payable by the purchaser shall be withheld on account of such
arbitration proceedings, unless it is the subject matter or one of the subject
matter thereof.

15. Thereafter, during the pendency of the aforesaid Petition under Section 9,
the Applicant invoked arbitration by sending a Notice of Arbitration dated
December 11, 2023 under Article 9 of the Contracts read with Clause 40
of the GCC to ICADR (and copied to the Respondent) requesting it to
provide details of the documents and information required to take further
steps in the arbitration. The Applicant has however, not received a response
to the notice from ICADR or the Respondent till date. Copy of the Notice
for Arbitration dated December 11, 2023 is appended herewith and marked
as Annexure – P4.

16. That the Applicant has additional claims totaling INR 97.3 Crore arising
out of the same Contracts. These includes INR 42.1 Crore towards supply
retention amounts, INR 4.2 Crore towards engineering payments upon
completion of contractual milestones, and INR 51 Crore towards extra
expenses due to the project prolongation.

17. The Respondent withheld the claim related to supply retention amounts.
These retention amounts are meant to be released upon the issuance of the
project Preliminary Acceptance Certificate (“PAC”) and Final Acceptance
Certificate (“FAC”). The PAC for the project was obtained in March 2022
with effective from December 2021. The Applicant has successfully
fulfilled all contractual obligations and was granted the FAC in February
2023.
18. On July 11, 2023, the Respondent communicated via email to the
Applicant, informing them of their intention to impose Liquidated
Damaged (“LD”) at a rate of 10% due to the delayed commissioning of the
Contracts. The Applicant, however, rejected the unilateral imposition of
LD and informed the Respondent that the delay in project completion was
not attributable to them and requested for waiver of the LD penalty.
Additionally, they urged the release of the withheld amount of INR 42.1
Crore related to the supply retention amounts.

19. The engineering invoices related to the PAC milestone were submitted for
claim in April 2022, and similarly, the invoices for the FAC milestone were
submitted in May 2022. In June 2022, the Applicant received a partial
amount against the Phase 1 PAC engineering invoice, while the remaining
balance of INR 4.2 Crore has been withheld by the Respondent since May
2022. Despite consistent follow-ups and reminder communications
regarding the release of these pending payments, the Respondent has
remained silent up to the present date.

20. The Applicant being a joint developer, drove this Contracts with special
efforts despite of various project challenges. These efforts were crucial to
recover lost time in the initial delay of civil & structural works by the
Respondent as well as to manage the site and project services during peak
COVID scenarios and other force majeure situations for successful
completion of the project. In view of the above, the Applicant incurred
additional expenses and absorbed an amount of INR 51 Crore during this
project completion.

21. Therefore, in light of the aforesaid facts and circumstances, the Applicant,
not being left with any alternative is constrained to invoke the jurisdiction
of this Hon’ble Court under the auspices of the Arbitration and
 Conciliation Act, 1996, more specifically under Section 11(6)(c), seeking
appointment of a sole arbitrator for adjudication of the disputes between
the Parties.

22. That the disputes and differences between the Parties are covered by the
arbitration clause as contained in the Contracts. By reason of the facts
stated hereinabove, no part of the claim/dispute is barred by limitation.

23. That the Applicant has no other alternative but to approach this Hon’ble
Court by filing this application under Section 11 of the Arbitration and
Conciliation Act, 1996. Unless appropriate orders are made as prayed
herein, the Applicant will suffer irreparable loss, prejudice and injury.

24. The Applicant craves leave of this Hon’ble Court to submit a detailed claim
along with comprehensive documentation before the Arbitral Tribunal
when the matter will be referred for adjudication through arbitration by this
Hon’ble Court.

25. That the place of arbitration in terms of the Contracts is Telangana and the
parties have specifically agreed to the jurisdiction of courts in Telangana
and therefore, this Hon’ble Court has the jurisdiction to entertain the
present petition.

26. The Applicant states that the Applicant has not filed any other application
before any other Court praying for the same relief.

27. This application is made bonafide and for the ends of justice.

Valuation of the subject matter:

The value of this Petition for the purpose of jurisdiction is fixed as Rs.
__________/-. However, fixed amount of Rs 2500/- as prescribed under the
law has been affixed on this Petition.
 PRAYER:
It is therefore most respectfully prayed before this Hon’ble Court may be
graciously pleased to:

a. Appoint a sole arbitrator under Section 11(6)(c) of the Contracts to

adjudicate the disputes between the Parties arising out of the Contracts.

b. Such further and other order(s) be passed and/or direction(s) be given

as this Hon’ble Court may deem fit, just and proper in the interest of
justice.

DEPONENT

VERIFICATION
I, R. Achuthan, authorized signatory of the Applicant Danieli India Limited, do
hereby verify that the contents of the foregoing Affidavit are true and correct to
the best of my knowledge as derived from the records of the Company. All legal
contentions are as per legal advice received.

Verified on this the ____ day of ______, 2024.

DEPONENT
Date: ___. ___. 2024
Place:
 APPENDIX-1

WRITTEN STATEMENT

The Parties:
1. The Applicant, Danieli India Limited, is a company incorporated under the
provisions of the Companies Act, 1956 having its registered office at
Technopolis, Block – BP, Plot – IV, 5th Floor, ‘B’ Wing, Sector V, Salt
Lake, Kolkata – 700091. The Applicant is represented by its authorized
signatory Mr. R. Achuthan, Son of Mr. K. Raman. Copy of the Board
Resolution dated November 17, 2022 is appended herewith and marked as
Annexure-P1.

2. The Applicant is a globally reputed company in the primary metal industry

providing engineering, contracting and consultancy services in areas of
iron making and steel making at all levels of development, based on
specialized know-how and vast operational experience. The Applicant has
valuable and specialized knowledge and expertise for design and
engineering, fabrication and supply of technological steel structures,
manufacture and supply of plant and equipment.

3. That Respondent is a company incorporated under the Companies Act,

1956 and has its registered office at P.O Kanchanbagh, Hyderabad -
500058, Telangana. The Respondent is a Public Sector Enterprise involved
in the production of steel.

Brief Facts:

4. The Applicant and the Respondent entered into contracts dated April 28,
2017 bearing numbers MDN/PUR/CG/5870004 for Phase I and
MDN/PUR/CG/5870005 for Phase II (hereinafter referred to as
 “Contracts”) for setting up Single Stand Reversing 4-HI Wide Plate Hot
Rolling Mill for Rolling of Plates (Phase-I) and Shear, Leveler, Roller
Hearth Furnace, Roller Pressure Quench, Cooling Beds etc and its
Auxiliaries (Phase-II) at the premises of Respondent at Hyderabad. Copy
of the Contracts are appended herewith and marked as Annexure-P2.

5. That in terms of the Contracts, the Applicant had inter alia agreed to
supply, impart and deliver the requisite confidential, proprietary and
copyright protected engineering data, design, drawings, documents etc. in
respect of the plant, equipment and spares, which was within its scope of
work under the Contracts.

6. The Applicant accordingly delivered the requisite engineering data,

designs, drawings, documents, materials, items with their specifications,
etc. (hereinafter referred to as “Proprietary and Confidential
Information”) for engineering, start up and commissioning of the facilities
including details for the operation and maintenance of the project to the
Respondent.

7. The Contracts specifically incorporated clauses relating to protection of

confidentiality and safeguarding intellectual property rights. These
included Clauses 17.10.4, 34.1 and 34.2 of the General Conditions of
Contract (“GCC”), to protect and safeguard the Proprietary and
Confidential Information of the Applicant against any misuse, breach or
wrongful dissemination to any third party, which would survive the
termination of the Contracts.

Clauses 17.10.4, 34.1 and 34.2 of the GCC are reproduced below for
reference:

17.10 Final Drawings

 17.10.4 All drawings, specifications, materials and designs, if any,
furnished by the Purchaser or his authorized representatives shall
be treated as confidential and shall be the property of the Purchaser
and shall be returned to the Purchaser upon completion of the work
or upon termination of the Contract. No copies or duplications
thereof shall be retained by the Contractor without the prior consent
of the Purchaser. All drawing, specifications or manuals furnished
by or through the Contractor shall be fully owned by the Purchaser
who is entitled to use them for all purposes of execution of the
Contract and operation and maintenance of the Plant being subject
to the Contract. However, the registered intellectual property right
for the drawings and documents as stated above furnished by or
through the Contractor shall remain with the Contractor.

34.0 OWNERSHIP OF DRAWINGS AND SPECIFICATIONS

34.1 All drawings, specifications, materials and design furnished by

the Purchaser, Engineer, or their representatives shall be treated as
the strictly confidential property of the Purchaser. All such
drawings, specifications, manuals and other materials shall be
returned to the Purchaser upon the completion of the work under
this Contract. No copies, duplications or Photostats shall be
retained by the Contractor without the consent of the Purchaser.

34.2 All drawings, specifications, and manuals and all specific

designs furnished by or through the Contractor shall be treated as
strictly confidential by the Purchaser, his employees and agents and
shall be the property of the Purchaser who is entitled to use them for
execution of the Contract and operation & maintenance of the plant,
machinery and equipment being subject to the Contract.

8. The Respondent, being the repository of the Proprietary and Confidential

Information of the Applicant was under a contractual obligation in terms
of Clauses 17.10.4, 34.1 and 34.2 of the GCC to protect and safeguard all
Proprietary and Confidential Information of the Applicant which was given
to it, against any misuse, breach or wrongful dissemination to any third
party. The Respondent was also bound to protect the intellectual property
 rights of the Applicant including copyright in the designs, drawings,
documents, technical information provided to the Respondent.

9. In July 2023, it came to the notice of the Applicant that Respondent had
floated the Applicant’s drawings in the open market for procurement of
work rolls and other associated parts in tender bearing no.
MDN/PUR/58230007/ADVT/079/23-24 dated May 8, 2023 (“Tender”).
This Tender contained the Proprietary and Confidential Information of the
Applicant namely its drawings bearing numbers 8.827075.Z (Work Roll
Assembly), 7.240753.S (Work Roll-2 Sheets) and 6.342163.C (Work Roll
Operating Conditions Data Sheet) with respect to work rolls and other
associated parts (hereinafter collectively referred to as “Work Roll
Drawings”).

10. Despite an express declaration of confidentiality and the fact that the Work
Roll Drawings could not be reproduced without the written consent of
Applicant, these drawings which constitute Proprietary and Confidential
Information of Applicant were used and uploaded online by the
Respondent in an unauthorized and unlawful manner – to be viewed by the
public at large.

11. The Applicant was accordingly constrained to file a Petition under Section
9 of the Arbitration and Conciliation Act, 1996 before the Hon’ble
Additional Special Court in the Cadre of District Judge for Trial and
Disposal of Commercial Disputes at Hyderabad, City Civil Court,
Hyderabad for ad-interim orders restraining the Respondent from any
further disclosure or misuse or dissemination of the Proprietary and
Confidential Information of Applicant to any third party and for ad-interim
orders restraining the Respondent from using, uploading or sharing all
Proprietary and Confidential Information of the Applicant on any website,
online platform or any other public platform. On September 13, 2023, the
 Hon’ble Court was pleased to grant an injunction restraining the
Respondent from disclosing the Proprietary and Confidential Information
of the Applicant to any third party or uploading or sharing the same in
breach of the Contracts. Copy of order passed by Additional Special Court
in the Cadre of District Judge for Trial and Disposal of Commercial
Disputes at Hyderabad, City Civil Court, Hyderabad is appended herewith
and marked as Annexure – P3.

12. Subsequently, in terms of Article 9 of the Contracts read with Clause 40

of the GCC, the Applicant invoked arbitration for adjudication of its
disputes relating to wrongful disclosure of its Proprietary and Confidential
Information by the Respondent. The disputes have to be adjudicated
through arbitration under Article 9 of the Contracts read with Clause 40 of
the GCC, which provides for appointment of arbitrator(s) by the
International Centre for Alternative Dispute Resolution (“ICADR”).

13. Article 9 of the Contracts and Clause 40 of the GCC are reproduced below
for reference:

Article 9 Arbitration (Reference GCC Clause 40)

9.1 This shall be as per Clause 40 of GCC

Clause 40 of the GCC

40.0 ARBITRATION
40.1 Any dispute(s) or difference(s) whatsoever arises under or out of or
in connection with this Contract, or in respect of any defined legal
relationship associated therewith or derived therefrom, the parties agree
resolve/settle the same by submitting that dispute to arbitration in
accordance with the International Centre for Alternative Dispute
Resolution (ICADR) Arbitration Rules 1996.

The authority to appoint the arbitrator(s) shall be the International Centre

for Alternative Dispute Resolution (ICADR).

The international center for alternative dispute resolution will provide

administrative services in accordance with ICADR Arbitration Rules 1996.
 The language of the arbitration proceeding shall be English.

The place of arbitration proceedings shall be Telangana, India.

Note: In respect of PSUs/Government organizations, the DPE guidelines

shall be applicable.

Work under the contract shall be continued by the contractor during the
arbitration proceedings, unless otherwise directed in writing by the
Purchaser or unless the matter is such that the work cannot possibly be
continued until the decision of the arbitrators is obtained, and save as those
which are otherwise expressly provided in the Contract, no payment due
or payable by the purchaser shall be withheld on account of such
arbitration proceedings, unless it is the subject matter or one of the subject
matter thereof.

14. Thereafter, during the pendency of the aforesaid Petition under Section 9,
the Applicant invoked arbitration by sending a Notice of Arbitration dated
December 11, 2023 under Article 9 of the Contracts read with Clause 40
of the GCC to ICADR (and copied to the Respondent) requesting it to
provide details of the documents and information required to take further
steps in the arbitration. The Applicant has however, not received a response
to the notice from ICADR or the Respondent till date. Copy of the Notice
for Arbitration dated December 11, 2023 is appended herewith and marked
as Annexure – P4.

15. That the Applicant has additional claims totaling INR 97.3 Crore arising
out of the same Contracts. These includes INR 42.1 Crore towards supply
retention amounts, INR 4.2 Crore towards engineering payments upon
completion of contractual milestones, and INR 51 Crore towards extra
expenses due to the project prolongation.

16. The Respondent withheld the claim related to supply retention amounts.
These retention amounts are meant to be released upon the issuance of the
project Preliminary Acceptance Certificate (“PAC”) and Final Acceptance
 Certificate (“FAC”). The PAC for the project was obtained in March 2022
with effective from December 2021. The Applicant has successfully
fulfilled all contractual obligations and was granted the FAC in February
2023.

17. On July 11, 2023, the Respondent communicated via email to the
Applicant, informing them of their intention to impose Liquidated
Damaged (“LD”) at a rate of 10% due to the delayed commissioning of the
Contracts. The Applicant, however, rejected the unilateral imposition of
LD and informed the Respondent that the delay in project completion was
not attributable to them and requested for waiver of the LD penalty.
Additionally, they urged the release of the withheld amount of INR 42.1
Crore related to the supply retention amounts.

18. The engineering invoices related to the PAC milestone were submitted for
claim in April 2022, and similarly, the invoices for the FAC milestone were
submitted in May 2022. In June 2022, the Applicant received a partial
amount against the Phase 1 PAC engineering invoice, while the remaining
balance of INR 4.2 Crore has been withheld by the Respondent since May
2022. Despite consistent follow-ups and reminder communications
regarding the release of these pending payments, the Respondent has
remained silent up to the present date.

19. The Applicant being a joint developer, drove this Contracts with special
efforts despite of various project challenges. These efforts were crucial to
recover lost time in the initial delay of civil & structural works by the
Respondent as well as to manage the site and project services during peak
COVID scenarios and other force majeure situations for successful
completion of the project. In view of the above, the Applicant incurred
additional expenses and absorbed an amount of INR 51 Crore during this
project completion.
20. Therefore, in light of the aforesaid facts and circumstances, the Applicant,
not being left with any alternative is constrained to invoke the jurisdiction
of this Hon’ble Court under the auspices of the Arbitration and
Conciliation Act, 1996, more specifically under Section 11(6)(c), seeking
appointment of a sole arbitrator for adjudication of the disputes between
the Parties.

21. That the disputes and differences between the Parties are covered by the
arbitration clause as contained in the Contracts. By reason of the facts
stated hereinabove, no part of the claim/dispute is barred by limitation.

22. That the Applicant has no other alternative but to approach this Hon’ble
Court by filing this application under Section 11 of the Arbitration and
Conciliation Act, 1996. Unless appropriate orders are made as prayed
herein, the Applicant will suffer irreparable loss, prejudice and injury.

23. The Applicant craves leave of this Hon’ble Court to submit a detailed claim
along with comprehensive documentation before the Arbitral Tribunal
when the matter will be referred for adjudication through arbitration by this
Hon’ble Court.

24. That the place of arbitration in terms of the Contracts is Telangana and the
parties have specifically agreed to the jurisdiction of courts in Telangana
and therefore, this Hon’ble Court has the jurisdiction to entertain the
present petition.

25. The Applicant states that the Applicant has not filed any other application
before any other Court praying for the same relief.

26. This application is made bonafide and for the ends of justice.
 Valuation of the subject matter:
The value of this Petition for the purpose of jurisdiction is fixed as Rs.
__________/-. However, fixed amount of Rs . 2500/- as prescribed under the
law has been affixed on this Petition.

PRAYER:
It is therefore most respectfully prayed before this Hon’ble Court may be
graciously pleased to:

c. Appoint a sole arbitrator under Section 11(6)(c) of the Contracts to

adjudicate the disputes between the Parties arising out of the Contracts.

d. Such further and other order(s) be passed and/or direction(s) be given

as this Hon’ble Court may deem fit, just and proper in the interest of
justice.

Applicant
VERIFICATION

I, R. Achuthan, authorized signatory of the Applicant, do hereby verify that the

contents of the foregoing written statement are true and correct to the best of my
knowledge as derived from the records of the Applicant. All legal contentions are
as per legal advice received.

Verified on this the __ day of February 2024.

Danieli India Limited

__________________
(Authorized Signatory)

Date: ___ . ___ .2024

Place: Hyderabad
 IN THE HIGH COURT OF JUDICATURE OF TELANGANA

AT HYDERABD

ARBITRATION APPLICATION No. OF 2024

IN THE MATTER BETWEEN:

Danieli India Limited
having its registered office at
Technopolis, Block-BP
Plot – IV, 5th Floor, ‘B’ Wing
Sector V, Salt Lake, Kolkata – 700091. …Applicant

AND

Mishra Dhatu Nigam Limited,

Government of India Enterprise
Through its Managing Director,
P.O. Kanchanbagh, Hyderabad – 500058,
Telangana, India. …Respondent

VERIFICATION AFFIDAVIT

I, R. Achuthan, Son of Mr. K. Raman authorized signatory of the Applicant

Danieli India Limited, having registered office at Technopolis, 5th Floor, B-
Wing, Block – BP, Plot No. IV, Sector – V, Salt Lake, Kolkata – 7000091, West
Bengal, India, do hereby solemnly affirm and declare on oath as follows:

1. I am the authorized representative of the Applicant, and I am also aware of

the facts and circumstances of the case and as such I am competent to swear
this affidavit. A copy of the Board Resolution is appended herewith and
marked as Annexure – A.

2. That the accompanying application under Section 11(6)(c) of the

Arbitration and Conciliation Act, 1996 has been drafted under my
 instructions and the contents thereof are not repeated herein for the sake of
brevity and the same may be treated as part and parcel of this affidavit.

3. That the contents of the accompanying application are true and correct to
the best of my knowledge and nothing material has been concealed
therefrom.

DEPONENT

VERIFICATION:

I the above-named Deponent do hereby solemnly affirm and verify that the
contents of the above Para Nos 1 to 3 are true and correct to the best of my
knowledge and nothing material has been concealed therefrom.

DEPONENT

Sworn and signed before me

on this ____ day ______ of 2024 at______

Advocate
 APPENDIX - II

APPLICATION UNDER SECTION 11 (6) (c) OF THE ARBITRATION

AND CONCILIATION ACT, 1996
(SPECIAL ORIGINAL JURISDICTION)
IN THE HIGH COURT OF JUDICATURE OF TELANGANA
AT HYDERABD

ARBITRATION APPLICATION No. OF 2024

IN THE MATTER BETWEEN:

Danieli India Limited
having its registered office at
Technopolis, 5th Floor, ‘B’ Wing
Block-BP, Plot No.– IV, Sector – V,
Salt Lake, Kolkata – 700091 …Applicant

AND

Mishra Dhatu Nigam Limited,

Government of India Enterprise
Through its Managing Director
P.O. Kanchanbagh, Hyderabad – 500058,
Telangana, India …Respondent

ARBITRATION APPLICATION FILED UNDER SECTION 11(6)(C) OF

THE ARBITRATION AND CONCILIATION ACT, 1996

For the reasons stated in the accompanying affidavit, it is hereby prayed that this
Hon’ble Court may be pleased to a) intervene in the matter and appoint a sole
arbitrator to adjudicate the disputes between the Parties b) pass such further order
(s) and this Hon’ble Court may deems fit, just and proper in the interest of justice.

Date:
Hyderabad Counsel for the Applicant