Oil Industry Development Board vs Godrej And Boyce MFG Co Ltd

Suresh Kumar Kait, J

The present petition has been filed under Section 11 (4) (a) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to

adjudicate the disputes with respondent.

Petitioner is a statutory body established under the Oil Industry Development Act, 1974. Respondent is company incorporated under the Companies

Act. Petitioner claims to have invited bids for interior works (including internal electricals) for ground First, Second and Third Floor of G + 3 Block of

the Oil Industry Development Board Office at Plot No.02, Sector 73, Noida. Respondent participated in the said bid and was successful in the same.

Subsequently, petitioner vide its letter dated 04.06.2008 accepted the respondent's bid and in furtherance thereof, an Agreement/Contract dated

25.06.2008 was executed between the parties. As per the said Contract, respondent was required to coordinate and consult Engineers India Limited

(EIL) for the proper execution of the project work. However, there were gross delays in the execution of the contractual work by the respondent due

to which the petitioner had terminated the contract and encashed the bank guarantees to realise Liquidated Damages, which respondent was liable to

pay to the petitioner in terms of the aforesaid Agreement/Contract.

According to petitioner, respondent thereafter raised a dispute under the Contract and in terms of clause 82.1 of the GCC sought settlement by way

of arbitration. Respondent vide letters dated 17.03.2011 and 29.04.2011 requested the respondent for appointment of an Arbitrator. However,

petitioner thereafter vide letter dated 18.05.2011 appointed the sole Arbitrator and the proceedings commenced. Also, respondent filed petition seeking

appointment of Arbitrator before this Court being Arbitration Petition No.74 of 2011, however, the said petition was dismissed as infructuous vide

Order dated 19.05.2011 passed by this Court. The learned sole Arbitrator conducted the Arbitration Proceedings and passed the Award dated

25.06.2008. Nevertheless, the said Award was challenged by petitioner before this Court vide OMP No.601 of 2012 inter alia on the grounds that the

learned sole Arbitrator had rejected the Counter Claims of the petitioner on the only ground that those were never claimed prior to the Arbitration

Proceedings. The said OMP No.601/2012 was partially allowed by this Court vide judgement dated 16.09.2019 wherein it was observed as under:

“37. In view of the above, the Award insofar as it refuses to consider the counter-claim of the petitioner is set aside, leaving it open to the

petitioner to agitate its claims in accordance with law.â€​

In terms of the liberty granted by this Court vide judgement dated 16.09.2019, petitioner sent a letter dated 26.02.2020 to the learned sole Arbitrator

requesting to reconvene the proceedings and to decide its Counter Claims. Learned sole Arbitrator vide email dated 04.03.2020 consented to enter

upon reference and decide counterclaims of OIDB as in terms of the liberty granted by this Court. The first hearing through video conferencing was

held on 24.06.2020, wherein respondent also agreed to continue the Arbitration and accordingly case was re-opened but due to ongoing pandemic,

further hearing could not be held. Now, the learned sole Arbitrator vide his email dated 7.10.2021 has expressed his inability to conduct the arbitration

proceedings and rescued himself from arbitration. Hence, the present petition has been filed.

Learned counsel appearing on behalf of respondent has agreed to the appointment of substituted sole Arbitrator by this Court for adjudication of

dispute between the parties.

In view of the above, the present petition is allowed. Accordingly, Mr. Justice (Retd.) Indermeet Kaur (Mobile: 9910384614) is appointed sole

Arbitrator to adjudicate the dispute between the parties.

The fee of the learned Arbitrator shall be governed by the Fourth Schedule of the Arbitration and Conciliation Act, 1996.

The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.

The present petition stands disposed of accordingly.

A copy of this order be sent to the learned Arbitrator for information.