Sikkim HC appoints former SC Judge Vineet Saran as arbitrator for the 99 MW Ting-Ting Hydroelectric Project dispute between TT Energy and the State

News Citation : 2026 LN (HC) 330

April 29, 2026 : In a significant move toward resolving a long-standing infrastructure deadlock, the High Court of Sikkim has directed that the dispute over the 99 MW Ting-Ting Hydroelectric Project be settled through formal arbitration. The Division Bench, comprising Chief Justice A. Muhamed Mustaque and Justice Bhaskar Raj Pradhan, delivered this judgment while hearing an appeal filed by TT Energy Private Limited against the State of Sikkim.

The legal battle stems from a Request for Proposal (RFP) issued by the State government in late 2025 for the development of the hydroelectric project. TT Energy Private Limited challenged this new tender, arguing that their original Implementation Agreement from 2008 was still in effect and should be honored. However, the State respondents countered that the project had been officially closed in 2012 and that the company had effectively abandoned the venture after failing to pursue an earlier arbitration attempt initiated in 2015.

The High Court chose not to delve into these complex factual disagreements, such as why the project was stalled or why previous legal actions were dropped. Instead, the Bench upheld a previous ruling that the presence of an arbitration clause in the original contract makes a writ petition the improper venue for such a dispute. The judges emphasized that because the core of the disagreement pivots on the subsistence of the contract itself, an arbitrator is best suited to examine the merits of the case.

A notable point of the judgment involved the court striking down Clause 9.2 of the Implementation Agreement. This specific clause had attempted to prevent an Arbitral Tribunal from issuing any injunctions or interim orders. The court ruled this provision unenforceable, noting that parties cannot contractually strip a tribunal of the powers granted to it under Section 17 of the Arbitration and Conciliation Act.

With the consent of both legal teams, the court has appointed Justice Vineet Saran, a former Judge of the Supreme Court of India, as the sole arbitrator. The proceedings are set to take place in Sikkim, providing a structured path forward for a project that has seen little progress for over a decade.

Case Reference : W.A. No. 04 of 2026 (TT Energy Private Limited vs. State of Sikkim & Another), the Appellant was represented by Senior Advocate Mr. M.G. Ramachandran alongside Advocates Ms. Mani Gupta, Mr. Pranav Malhotra, Ms. Srishti Khindaria, Mr. Udwipt Verma, and Ms. Parvin Manger , while the Respondents were represented by Additional Advocate General Mr. Aarohi Bhalla, Government Advocate Mr. Thinlay Dorjee Bhutia, and Assistant Government Advocate Mr. Sujan Sunwar.