The Delhi High Court rejected Hindustan Clean Energy’s argument that the award had been issued by the wrong Chinese arbitral institution.
It noted that LDK Solar Hi-Tech (Suzuhou) had not been wrong to initiate the arbitration before the China International Economic and Trade Arbitration Commission (CIETAC) in Beijing.
The disputes between the two parties have their genesis in a 2011 contract for the supply of solar panels, which was formed between LDK Solar and Enertec, for use in the latter’s various solar energy generation projects in India.
Hindustan Clean Energy stood as a guarantor for the due discharge of obligations by Enertec under the contract. After Enertec failed to discharge its liability under the contract and purchase orders, LDK Solar invoked arbitration, seeking financial recovery.
During the course of arbitration proceedings, it sought deletion of Enertec as a party and the arbitration proceedings continued only against Hindustan Clean Energy.