# In the matter of Balasore Alloys Limited vs. Flynt Mining LLP

> HC judgment dated 2025-04-02. Citation: TCN-2025-HC-00029. The case involves an application for the appointment of a learned Arbitrator in terms of Clause 16…

- **Court:** HC
- **Order date:** 2 Apr 2025
- **Citation:** TCN-2025-HC-00029
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/balasore-alloys-limited-vs-flynt-mining-llp-7e0181d3

## Summary

### Background

The case involves an application for the appointment of a learned Arbitrator in terms of Clause 16 of an agreement dated February 19, 2019, between Balasore Alloys Limited (the petitioner) and Flynt Mining LLP (the respondent). The petitioner alleges that the respondent breached the agreement by failing to provide mining services, including the extraction of chromite ore, as agreed. The petitioner claims that the respondent's actions led to a shortfall in the quantity of ore extracted, collapsed tunnels, and abandonment of the work site. The respondent, on the other hand, contends that the petitioner failed to pay dues, leading to the issuance of demand notices under the IBC 2016 and the filing of an application before the NCLT.

## Facts

Balasore Alloys Limited (the petitioner) and Flynt Mining LLP (the respondent) entered into an agreement dated February 19, 2019, where the respondent was to provide mining services, including chromite ore extraction, to the petitioner. The petitioner alleges the respondent breached the agreement by failing to provide adequate mining services, leading to a shortfall in ore extraction, tunnel collapses, and abandonment of the work site on November 15, 2019, without intimation. The petitioner claims Rs. 7,66,64,42,018/- in damages. The respondent issued demand notices under the IBC 2016 for unpaid dues and filed an application before the NCLT, Cuttack. The petitioner then invoked arbitration under Clause 16 of the agreement, proposing a sole arbitrator, which the

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## Issues and analysis

### Issue 1: Whether Clause 16 of the agreement …

**Ratio:** For a clause to be considered a valid arbitration agreement, it must reflect a clear

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**Reasoning:** The court reasoned that Clause 16 does not explicitly mention arbitration and does not

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**Interpretation:** The court interpreted the clause in light of precedents such as Jagdish Chander

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**Application:** The court applied the ratio to the facts by noting that Clause 16 lacked the

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## Parties

- **Judges:** Shampa S…
- **Appellants:** Balasore Alloys…
- **Respondents:** Flynt Mini…
- **Other parties:** Kohi…

## Timeline

- **2019-02-19 — Agreement…**: Balasore Alloys Limited and Flynt…
- **2019-07-01 — Work Commen…**: Work commenced…

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