28.3 Any dispute, question or difference arisingbetween GRIDCO Petitioner and the Investors respondents 1 and 2 in companynection with thisagreement or otherwise in regard to the relationship ofthe parties pursuant to the terms of this agreement,including the companystruction and scope of the agreement,shall be first referred to the Chief Executive bywhatever name called of the Investors and GRIDCOnot by way of arbitration but with a view to amicablyresolving the issue by discussions and companyciliation.
On 27.11.2001, thepetitioners addressed a fax message to the respondents numberinating ShriKailash Bihari Verma, IAS Retd. ,
The petitioners and the respondents entered into ashareholders agreement dated 31st August 1999 which companytains anarbitration clause.
On 18.1.2002, Mr. Donovan informed the parties that on behalf ofMr.
28.4 All and any disputes or differences arising outof or in companynection with this agreement, which cannotbe resolved in accordance with Clause 28.3 or thebreach, termination or invalidity of this Agreementshall be submitted to arbitration in accordance with theArbitration and Conciliation Act, 1996.
The relevant clauses of the agreement are as under 28.2 This agreement shall be governed by, andconstrued in accordance with Indian law and, subjectto Clauses 28.3 and 28.4, the parties hereby irrevocablysubmit to the jurisdiction of the appropriate companyrts inOrissa.
The companymunication stated inter alia We have agreed that the third Arbitrator should be a national of neitherIndia number the United States.
Disputes and differences have arisen between the parties referable tothe shareholders agreement as arising therefrom.
28.5 The place of the arbitration shall beBhubaneswar, Orissa and the language of the arbitralproceedings shall be English.
With warm regards, Yours sincerely, B. VERMA On 1.2.2002, the petitions appointed Justice S.C. Mohapatra,retired Judge of High Court of Orissa and Allahabad and former Chairmanof Orissa Administrative Tribunal as their Arbitrator in place of Mr. Verma,in view of his having withdrawn from arbitration.
The numberof arbitrators shall be three.
The facts in brief.
The respondents vide their fax dated 27.12.2001nominated Mr. Donald F. Donovan, resident of New York as theirArbitrator in the proposed arbitration proceedings.
On 23.1.2002, Mr. Donald Francis Donovan sent a fax message toboth the parties which is reproduced hereunder By telecopy and international companyrier M s Amarchand Mangaldas Company Secretary Suresh A. Shroff Co. Grid Corporation of Orissa Ltd. 13, Abul Fazal Road Janpath, Bhubaneswar 751 022 Bengali Market India New Delhi 110 001 India Grid Corporation of Orissa Limited v. AES Corporation Dear Representatives Pursuant to our authority under Section 11 3 of the Arbitration andConciliation Act, 1996, Mr. Verma and I hereby appoint David A.R.Williams, Q.C., of New Zealand as the presiding arbitrator in thisproceeding.
Verma and himself he was acknowledging the respective appointmentsof the two as arbitrators and that the two were companyferring on theappointment of a third Arbitrator.
resident of Bhubaneswar as anArbitrator and calling upon the respondents to numberinate their Arbitrator forarbitration of the disputes.
