Disposed

M/S. D. N. Engineering Works v. Oil and Natural Gas Corporation Ltd. and Anr.

Bombay HC8 Oct 2007WP/5192/2007

Case brief

AI extract

What is this about?

In a writ petition seeking quashing of a contract termination order, the Hon'ble Court held that the dispute fell under an arbitration clause. Directions were issued for the petitioner to approach the Director of ONGC to initiate arbitration proceedings. All merit issues were kept open. The petition was disposed of as withdrawn.

What did the court decide?

Directing petitioner to approach Director ONGC to claim reference to sole arbitrator; Petition disposed of as withdrawn.

M/S. D. N. Engineering Works Vs Oil and Natural Gas Corporation… — Arbitration | Bombay HC (2007)

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 IN THE HIGH COURT OF JUDICATURE AT BOMBAY

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 CIVIL APPELLATE JURISDICTION

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 WRIT PETITION NO.5192 OF 2007

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 M/s.D.N.Engineering Works .. Petitioner

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Vs.

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 Oil and Natural Gas
 Corporation Ltd. & Ors. .. Respondents

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 Mr.V.V.Pai and Mr.V.M.Bhate for the petitioner

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 Mr.Prakash Shinde i/b M/s.M.Dhruva and Co. for
 respondent no.1

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 CORAM : J.N.PATEL &

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 A.A.SAYED, JJ.

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DATED : 8TH OCTOBER, 2007

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 P.C.:

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 1. The petitioner has approached this court

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 seeking quashing and setting aside the letter dated
 31st May, 2007 by virtue of which the contract
 assigned to the petitioner came to be terminated.
 The matter is contested by the respondents and we
 find that there are disputed question of facts and
 law which have been raised. The contract was

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 entered between the parties which is governed by
 the contract agreement which was part of the tender
 which contains a clause for Arbitration. Clause 35
 clearly lays down that ’Except as otherwise
 provided elsewhere in the CONTRACT if any dispute,
 difference, question or disagreement arises between
 the parties hereto or the respective
 representatives or assignees, at any time in
 connection with construction, meaning, operation,
 effect, interpretation or out of the CONTRACT or
 breach thereof the same shall be referred to
 Arbitration of Sole Arbitrator appointed by the
 Director of ONGC This is applicable for indigenous
 contracts upto Rs.1 Crores.’

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 2. Therefore, this court is of the view that
 it will be appropriate that the petitioner lodges
 his claim to the Director of ONGC for referring it
 to the sole Arbitrator as per the scheme provided
 under Clause 35.

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 3. The learned counsel appearing for ONGC
 submits that the clause 35 is applicable only in
 case of Indigenous contracts and not otherwise.

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 Well, that is for the Director of ONGC to decide
 and that itself can be an issue in dispute arising
 between the parties.

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 4. The learned counsel for the petitioner
 submits that the petitioner would approach the
 Director of ONGC within two weeks from today and
 lodge his claim for referring the dispute to the
 sole arbitrator in accordance with the scheme laid
 down in clause 35 of the contract agreement. In
 case such a claim is lodged with the Director of
 ONGC, he would within a period of two weeks direct
 ONGC to take a decision in the matter within 4
 weeks and communicate the same to the petitioner.

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 5. This court makes it clear that all the

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 issues raised in the petition are kept open as this
 court has not dealt with the merits of the matter
 in view of the Arbitration clause. With these
 directions and observations, the petitioner is
 permitted to withdraw the petition. Petition
 stands disposed of as withdrawn.

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 ( J.N. PATEL, J )

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 ( A.A. SAYED, J )

M/S. D. N. Engineering Works v. Oil and Natural Gas Corporation Ltd. and Anr.

Case brief

What is this about?

What did the court decide?

M/S. D. N. Engineering Works v. Oil and Natural Gas Corporation Ltd. and Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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