HSNC University, Mumbai

D.M. Harish School of Law

Assignment for
Internal Continuous Assessment- 2023

Subject: Alternative Dispute Resolution

(Clinical)
Topic: Arbitration - Statement of Claim
and Statement of Defence

Submitted by: Het Ashok Doshi, Sheetal Idnani.

Program: LL.B. 3yrs.
Roll No.: DMSYLLB002, DMSYLLB004.
Semester: III
Submitted to: Mr. Bhanu Advani.

Signature of the Faculty

 TABLE OF CONTENTS

STATEMENT OF CLAIM

CAUSE TITLE …………………………………………………………………… 3

I. INTRODUCTION………………………………………………………………… 4

II. PARTIES
A. CLAIMANT ……….…………………………………………………….. 5

B. RESPONDENT ………………………………………………………….. 6

III. FACTUAL BACKGROUND …………………………………………………… 5

IV. THE RESPONDENT’S LIABLILTY

FOR THE BREACH OF CONTRACT....……………………………………….. 7

V. THE CLAIMANT IS ENTITLED TO COMPENSATION ……………………. 7

VI. CLAIMANT’S DAMAGES ……………………………………………………. 9

VII. JURISDICTION AND ADMISSIBILITY ……………………………………… 9

VIII. PROCEDURAL MATTERS ……………………………………………............. 10

IX. REQUEST FOR RELIEF ……………………………………………………….. 11

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 BEFORE THE HONOURABLE SOLE ARBITRATOR

MR. BHANU ADVANI, MUMBAI.

ARBITRATION IN THE MATTER BETWEEN

GREEN LANTERN CONSULTATION LTD.

230, Phoenix Commercial Complex,

44, K.K. Road,

Mumbai – 400 009. …Claimant.

VERSUS

SPIDERWEB LTD.

54, Mittal Tower,

Nariman Point,

Mumbai – 400 021. …Respondent.

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 STATEMENT OF CLAIM

MOST RESPECTFULLY SHOWETH:

I. INTRODUCTION

1. That Green Lantern Consultation Services (hereinafter for the sake of brevity ‘Claimant’)
hereby commences the arbitration proceedings against Spiderweb Ltd. (hereinafter for the
sake of brevity ‘Respondent’) under the Arbitration and Conciliation Act, 19961 (hereinafter
for the sake of brevity ‘The Act’).

2. That the present claim arises out of the Respondent’s non-performance and consequent
breach of contract that resulted in loss and damage to the Claimant in an amount currently
estimated to be no less than INR 1 Cr. In accordance with the basic principles of the Indian
Contract Act, 18722, the Claimant seeks compensation for those losses, including interest
and legal fees.

3. That despite the Claimant’s efforts to seek amicable resolution of this dispute since the
service of the Claimant’s notice of intent on 24th August, 2020 (hereinafter for the sake if
brevity “Notice”), the Respondent has refused to offer any compensation for the Claimant’s
losses to date.

4. That the present Statement of Claim is filed on behalf of the Claimant. The present claim is
being is signed, verified and presented by Ms. Het Doshi and Ms. Sheetal Idnani,
Authorized Representatives of the Claimant. They have been duly authorized to do so vide
a resolution passed by the Board of Directors of the Claimant.

1
Act 26 of 1996 (India).
2
Act 9 of 1872 (India).
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II. THE PARTIES

A. CLAIMANT

5. That the Claimant in the present arbitration is GREEN LANTERN CONSULTAION

SERVICES LTD.

6. That it is a company incorporated under The Companies Act, 2013. It provides consultation
services to Start-Ups from the idea stage to the unicorn stage. It offers tailored solutions
including market research, branding, marketing, operations, strategic planning, etc. to 250+
Start-ups since its incorporation in 2015. It has earned a reputation in the market for the
umbrella of services it has been providing efficiently over time.

7. That the Claimant’s registered address is:

GREEN LANTERN CONSULTAION SERVICES LTD.,

230, Phoenix Commercial Complex,
44, K.K. Road,
Chinchbunder,
Mumbai – 400 009.
Tel: +91 022 23771562
E-mail: glcsl@gmail.com

8. That the Claimant’s representative, to whom all correspondence should be sent in this
arbitration, is:

Yusuf Alamgir and Associates,

Ms. Ria Khanna,
14 Casa Grande,
Lower Parel,
Mumbai – 400008.
Tel: +91 022 23654095
Mob: 9324207890.
e-mail: riakhanna.yaa@gmail.com

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 B. RESPONDENT

9. That the Respondent in the present arbitration is SPIDERWEB LTD.

10. That it is a company incorporated under the Companies Act, 2013, engaged in providing IT
services.

11. That the registered office of the Respondent is situated at:

54, Mittal Tower,

Nariman Point,
Mumbai – 400021.
Tel: +91 022 28115976.

12. That the Claimant understands that the Respondent is represented in connection with this
dispute by:

HHK Law Firm,

Ms. Puja Parekh,
23, Geetanjali Towers,
66, Fort,
Mumbai – 400 001.
Tel: +91 022 64752198.
Mob: 9324874270.
Email- poojaparekh@gmail.com

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III. FACTUAL BACKGROUND.

13. That the Respondent entered into a contract on 25th January 2020 (‘Contract’)
with the Claimant. in order to provide IT related services.

14.That the Respondent could not perform its obligations within the deadline i.e. 14th
August 2020 due to various circumstances and restrictions that were imposed during the
COVID – 19 pandemic (force majeure), which led to deficiency in services.

15. That there was a breach of contract on behalf of the Respondent due to which the
Claimant suffered an alleged loss of amount INR 1 Cr.

16. That the Claimant terminated the contract and claimed damages from the Respondent.

17. That the Arbitration Clause was inserted in the contract which provided for
arbitration proceedings against the Respondent.

18. That the services to be rendered by the Respondent under umbrella services included
Managed services, Information Technology consulting, Cyber-security, Network
Security, etc.

19. That the parties had agreed at 20,00,000 INR to be the amount to be paid for the services
rendered.

20. That further the parties mutually agreed that the payment was to be made in 2
installments. The first installment was to be paid upon the execution of the contract, i.e.
on 25th January, 2020. The balance amount was to be paid upon successful completion of
the contract.

21. That as mutually agreed the Claimant paid one-half of the total amount on the 25 th
January, 2020.

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IV. THE RESPONDENT’S LIABLILTY FOR THE BREACH OF CONTRACT

22. That the Respondent was unable to fulfill the terms and conditions of the contract and
failed to perform its obligations within the deadline i.e. 14th August 2020 which
amounted to breach of contract in-turn causing huge financial loss to the Claimant.
Furthermore, irreparable damage was caused to the Claimant’s reputation as it was
unable to cater services to its clients.

23. That the Respondent’s invoke force majeure and claim that they failed to perform their
part in the contract due to various circumstances and restrictions that were imposed
during COVID-19 pandemic, which led to deficiency in services.

24. That the Respondent’s claim of COVID-19 restrictions is not true as the Govt. of
Maharashtra in its guidelines related to essential goods and services had considered
IT and ITes as an essential service and had excluded them from the Lockdown3.

V. THE CLAIMANT IS ENTITLED TO COMPENSATION

25. That due to the unprofessional conduct of the Respondent, the Claimant suffered
substantial losses as their clients terminated contracts and imposed penalties due to
deficiency in services.

26. That the Claimant’s relation with its clients and its goodwill in the market was tarnished
due to the Respondent’s non-performance of the obligations of the contract which were
not attributable to the Claimant.

27. That the Claimant’s suffered financial losses in the tough times of COVID-19 when
new work and new clients were unable to come their way owing to the various
restrictions imposed by the Govt. of Maharashtra.

28. That the Claimant had tried all modes of conciliation but the Respondent is not ready
to settle the dispute. Thus the Claimant presents the dispute at hand before the
Honorable Arbitrator.

29. That the Claimant is entitled to damages caused due to Respondent’s contractual breach.

3
https://mumbaimirror.indiatimes.com/coronavirus/news/mumbai-thane-lockdown-heres-what-counts-as-essential-
services-and-violations-amid-covid-19-outbreak/articleshow/74770258.cms?
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VI. CLAIMANT’S DAMAGES

30.

Particulars Amount in INR.

Payment made to Respondent 10,00,000/-

Expenditure of Arbitration Fees 12,00,000/-
Expenditure of Counselor Fees 5,00,000/-
Expenditure on Venue 1,00,000/-
Penalties charged by Clients 5,00,000/-

31. That the Claimant’s goodwill cannot be calculated in terms of money. However, the
goodwill of the Claimant is at stake. The Claimant claims 1% of its monthly average profit
on sales of services.

32. The Claimant claims 50,00,000/- INR as compensation for damage caused to its Goodwill.

33. Claimant’s total damages are currently estimated at 86,00,000/- INR.

34. Claimant is entitled to interest of 16% on these amounts.

VII. JURISDICTION AND ADMISSIBILITY

35. That Pursuant to Clause 18 of the Contract, the Respondent has consented to arbitration
claims by the Claimant alleging breach of contract.

36. That by this Statement of Claim, the Claimant consents to Arbitration in accordance with
the procedures set forth under the Act.

37. That in terms of the Clause 18 of the Contract, the parties have mutually agreed submit
themselves to the jurisdiction of this Tribunal to resolve any disputes arising out of the said
Contract. Therefore, it is submitted that this tribunal has the jurisdiction to entertain the
present claims of the Claimant.

38. Clause 18, Arbitration Clause

‘That in case of any dispute or difference arising out in relation to non- completion of the contract or
contractual obligation not met in the specified time frame as mentioned in the contract both the
parties shall to resolve the same through discussions and conciliation, failing to which the matter
shall be referred to a sole arbitrator Mr. Bhanu Advani. The Arbitration and Conciliation Act, 1996
will be applicable to the arbitration proceedings. The venue of the arbitration shall be Mumbai only.
. The Arbitration Proceedings shall be conducted in English only. The award of the arbitrator shall be
final and binding on the both the parties.’

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VIII. PROCEDURAL MATTERS.

39. The Claimant submits its claims to arbitration under the Act.

40. That only English shall be the language of arbitration unless otherwise ordered to do so.

41. That the Tribunal is to comprise of a Sole Arbitrator, Mr. Bhanu Advani.

42. That to the best of the Claimant’ knowledge and belief, Mr. Bhanu Advani is independent
of the parties and impartial.

IX. FOR AVOIDANCE OF DOUBT, CLAIMANT RESERVES ITS RIGHT TO:

i) Raise any and all further claims arising out of or in connection with the disputed
matters described in this Statement of Claim; and
ii) Amend and/or supplement the relief sought herein;
iii) Produce such factual or legal arguments or evidence sa may be necassry to present
its case or rebut any case which may be put forward by Respondents; and
iv) Seek interim and provisional measures before this Arbitral ribunal.

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X. REQUEST FOR RELIEF

43. In view of the aforesaid facts and circumstances, the Claimant most humbly prays that
this Honorable Tribunal may graciously be pleased to issue an award:

a) declaring that the Respondent is held liable in relation to breach the Contract
resulting in the present dispute and the Claimant is rightfully entitled to
compensation; and

b) ordering the Respondents to compensate the Claimant for the damages and
losses suffered as a result of the Respondent’s breach of contract; and

c) ordering the Respondent to pay all the arbitration costs, including the Claimant’s
representative’s costs and expenses; and

d) ordering payment by Respondent of interest at the rate of 16% pursuant to bank

interest rates on all of the above amounts as of the dates the amounts were due, until the
date of effective payment; and

e) declaring such other order(s)/relief(s) in favor of the Claimant and against the
Respondent as this Tribunal may deem fit and proper in the facts and circumstances of
the present case.

------------------------------------

CLAIMANT
Place: Mumbai

Date: 16/09/2020
THROUGH

Yusuf Alamgir and Associates,

Ms. Ria Khanna,
14, Casa Grande,
Lower Parel, Mumbai – 400008.
(Counsel for the Claimant)

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