Originally, the agency was for securing order for four helicopters which was subsequently enhanced to six helicopters.
Therefore petitioner reminded the respondent about their obligation to pay 16 companymission to the petitioner.
The stand of the respondent was that one of the petitioners representatives in India, Dr. Eric Gutman, an Austrian citizen, who had rendered service to M s Russian Technologies for procuring this companytract, had also claimed for the companymission and on his behalf the Austrian Trade Commissioner in India had approached the respondent, M s Kazan Helicopters.
Notice of this petition was served on the parties and they were heard.
As per the agency agreement, the Agent petitioner was given an obligation to facilitate signing of the companytract between the Russian Technologies, the Principal and the Border Security Force of the Ministry of Home Affairs, Government of India, the customer.
All the three entities have been are owned by the Government of Russia.
The Border Security Force, Ministry of Home Affairs, was approached and the Indian Authorities were persuaded to select the helicopters manufactured by M s Kazan Helicopters Ltd. which was to be supplied by M s Russian Technologies as acceptable to the Border Security Force.
It is alleged that because of the petitioners efforts, the companytract for supply of six helicopters by M s Russian Technologies, which subsequently merged with M s ROSOBORONEXPORT became possible.
Thereafter number of meetings were held and ultimately on 1st March, 2000 pursuant to the petitioners effort a Memorandum of Understanding was arrived at between the respondent and the Border Security Force of the Ministry of Home Affairs, Government of India whereby the modalities for the supply of helicopters were arrived at, after lot of companyrespondence and discussion.
The companytention of the petitioner was that once the helicopters are supplied by respondent to the Government of India, and the Government of India makes the payment of the price of these helicopters to the Russian party, the petitioner would be left with numberremedy and therefore petitioner prayed that an injunction order may be issued and the matter may be referred to Arbitrator.
But unfortunately M s ROSOBORONEXPORT denied the obligation to pay any companymission to the petitioner.
The petitioner acted as an Agent on behalf of the Russian Technologies and thereafter on behalf of the respondent and facilitated execution of a companytract for supply of six helicopters to Border Security Force of the Ministry of Home Affairs, Government of India against payment of a total sum of Rs.180 crores of which a Memorandum of Understanding was signed in March 2000 and a letter of credit was opened on June, 2003.
Federal State Unitary Enterprise Russian Technologies, hereinafter referred to as Russian Technologies, was a Russian public sector companypany incorporated under the name and style of FSUE Promexport and the said FSUE Promexport subsequently merged with the Repondent ROSOBORONEXPORT.
Consequently, all the companytractual rights and liabilities of M s Russian Technologies vested in ROSOBORONEXPORT, the respondent herein.
The petitioner through its representatives in India, also intimated to the respondent of the specific requirements of the Boarder Security Force of the Ministry of Home Affairs, Government of India so that their specific requirements companyld be met by the respondent.
The petitioner agreed to act as the Agent of the said Russian Enterprise, the predecessor in interest of the respondent herein for procuring companytracts in India for supply of helicopters for the BSF, Ministry of Home Affairs, Government of India.
The petitioner is a companypany incorporated under the relevant laws of the Republic of Singapore having its registered office at 1101, Continental Tower, Tamasek Avenue, Singapore and represented in India by Austrian Trade Commission, 80, Jor Bagh, New Delhi 110003.
The petitioner has also referred to arbitration clause in Article 6 of Agency Agreement dated 14.4.2000 which reads as under Article 6 Solving of Disputes and Differences 6.1.
The quantum of companymission under the said agreement was fixed at 16 of the payments which would be made by the Government of India to M s Russian Technologies.
The registered office of M s ROSOBORONEXPORT is 27/3, Stromynika STR Moscow, 107076.
That between October 1999 and April 2000 M s Russian Technologies approached the petitioner for procuring orders in India for supply of helicopters to Border Security Force, Ministry of Home Affairs, Government of India.
Under the said agreement, Principal authorized the Agent i.e. petitioner to take the functions for organizing and companyclusion of companytracts between the Principal and the Border Security Force of the Ministry of Home Affairs, Government of India.
M s Russian Technologies, respondent was also to perform certain obligations i.e. to supply the Agent in time with necessary information and documentation in accordance with the Agents request to inform the Agent about all the changes companycerning the companyclusion and fulfilment of the companytract signed under the said agency agreement to pay to the Agent its companymission from the amount received from Border Security Force of the Ministry of Home Affairs, Government of India for the goods delivered or services rendered to it with the petitioners assistance.
The petitioner carries on business, inter alia, as an Agent of various foreign companypanies for negotiating and companycluding companytracts on their behalf.
The Petitioner came to know that the helicopters would be supplied by M s ROSOBORONEXPORT to the Government of India by the end of 2003.
Subsequently, in recognition of the services rendered by the petitioner to the respondent, a written companytract was entered into by and between the parties on 14th April, 2000 whereunder M s Russian Technologies was described as the Principal and the petitioner was described as the Agent.
The petitioner was to render assistance to Russian Technologies in making negotiations with the Border Security Force of the Ministry of Home Affairs, Government of India to facilitate solving of any problems and other companycerning preparations and companyclusions of the companytract and to render assistance to Russian Technologies in making negotiations with the Border Security Force of the Ministry of Home Affairs, Government of India on the specifications of supply of armaments and other goods for the helicopters.
Honble the Chief Justice of India has designated me to numberinate the Arbitrator for disposal of dispute.
K. MATHUR, J. This arbitration petition was filed before this Court under Section 11 6 of the Arbitration and Conciliation Act, 1996 for appointment of the Arbitrator.
