SC-ARBITRATION 2 LAST

The 3,960 MW ultra mega project was set up by Reliance The 3,960 MW ultra mega project was set up by ReliancePower-owned Sasan Power Ltd, which had executed a Memorandumof Understanding with NACC-US in January 2009 for technicalconsultancy related to coal mining and related activities. Based on this, in April 2011, the US firm assigned itsrights, liabilities and obligations under the agreement to itsIndian subsidiary — North American Coal Corporation IndiaPrivate Limited (NACCIPL). Later, NACCIPL issued a letter of termination in respectof the associate agreement and filed a request for arbitrationwith the International Council for Arbitration (ICC), claiminga compensation of over 17 million USD along with compoundinterest. Sasan Power challenged this before a district court atSingrauli which dismissed the plea. Sasan Power argued that the dispute between the twoIndian companies should be decided by the Indian judicialsystem and not the arbitral tribunal in London under theauspices of the ICC. North America Coal Corporation, on the other hand, arguedthat it has to be heard at the ICC. It was permissible for twoIndian parties to have a foreign seat and this is wascontemplated within the scheme of the Arbitration andConciliation Act, 1996, its Indian subsidiary had argued. PTISJK PKS RKSARC