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Dispute Resolution in Turbines Contract

The document summarizes a dispute between G&T India Private Limited and Martinium Electronics Pte Ltd regarding a contract for turbines for a hydroelectric power plant in Sikkim, India. G&T initiated arbitration in Singapore per the contract when the turbines failed quality tests. An arbitration award was made in G&T's favor on December 31, 2019. G&T then filed a petition in Bombay High Court to enforce the arbitration award, which Martinium is resisting. The document requests memorandums from both sides addressing enforcement of the award.

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Mayank Tripathi
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371 views2 pages

Dispute Resolution in Turbines Contract

The document summarizes a dispute between G&T India Private Limited and Martinium Electronics Pte Ltd regarding a contract for turbines for a hydroelectric power plant in Sikkim, India. G&T initiated arbitration in Singapore per the contract when the turbines failed quality tests. An arbitration award was made in G&T's favor on December 31, 2019. G&T then filed a petition in Bombay High Court to enforce the arbitration award, which Martinium is resisting. The document requests memorandums from both sides addressing enforcement of the award.

Uploaded by

Mayank Tripathi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Moot Problem

Promit Chaterjee
Senior Associate, P&A Law Offices
On 2 October 2018, the government of Sikkim awarded a contract to Garrison & Toubro India

Private Limited (G&T) for building a state-of-the art hydroelectric power plant channeling water

from the Teesta river. G&T is a reputed engineering and construction consulting company

registered in Mumbai, and is the subsidiary of the UK headquartered Garrison & Toubro

Limited.

On 4 January 2019, G&T entered into a contract with Martinium Electronics Pte Ltd

(Maritnium) for procuring turbines for the power project (the Turbines Contract). Martinium

is the Singapore incorporated subsidiary of German electronics corporation, Martinium GmbH.

Clause 17 of the Turbines Contract states:

“17. Governing Law and Dispute Resolution

17.1 This contract including this Clause 17 shall be governed in accordance with Indian law.

17.2 The courts in Maharashtra, India have exclusive jurisdiction over any dispute arising out

of or in connection with this contract, including any question regarding its existence,

validity or termination, subject to G&T’s right to go to arbitration pursuant to clause

17.3.

17.3 G&T has the right to refer any dispute arising out of or in connection with this contract,

including any question regarding its existence, validity or termination, to arbitration in

Singapore under the Rules of the International Chamber of Commerce Arbitration Rules 2012

(ICC Rules), which Rules are deemed to be incorporated by reference into this clause.”
The first batch of turbines was delivered to G&T’s project site in Sikkim on 1 April 2019.

However, all of these turbines failed G&T’s quality control test. Being dismayed by this, G&T’s

CEO, Mr Jim Daniels engaged a forensic investigations company, Cosmopolitan Investigations

LLP (Cosmopolitan) to conduct an investigation into the affairs of Martinium. The investigative

report submitted by Cosmpolitan to G&T on 1 May 2019 noted that MARTINIUM had

deliberately misrepresented and forged all documents pertaining to quality of the raw materials

used in production, the industry body certificates for the quality and efficiency of its production

machinery, regulatory approvals for its plants, etc. Mr Daniels became very aggrieved by this

report given that G&T had entered into the Turbines Contract solely on the basis of Martinium’s

representation about the quality of its turbines and the reliability of its production process.

Pursuant to the unanimous decision taken at an emergent board meeting on 10 May 2019, G&T

initiated arbitration under the ICC Rules. This arbitration was seated in Singapore and an award

on jurisdiction and merits was passed by the tribunal on 31 December 2019 (the Award).

Maritinium never participated in the arbitral process out of protest.

On 25 March 2020, G&T filed a petition before the Bombay High Court for enforcing the above

award and notice was issued to Martinium on that day itself.

Please draft a memorandum on behalf of Martinium (the Martinium Memo) resisting

enforcement of the Award as well as another memorandum on behalf of G&T replying to the

Martinium Memo.

Moot Problem Promit Chaterjee Senior Associate, P&A Law Offices On 2 October 2018, the government of Sikkim awarded a contrac
The first batch of turbines was delivered to G&T’s project site in Sikkim on 1 April 2019. However, all of these turbines fai

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