Ongc Ltd vs Consortium Of Sree-Meil-Vngs on 23 December, 2020

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Delhi High Court - Orders

Ongc Ltd vs Consortium Of Sree-Meil-Vngs on 23 December, 2020

Bench: Rekha Palli

                                                                              Via video conferencing
                          $~OS-7
                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +     O.M.P. (COMM) 134/2018

                                ONGC LTD.                                         ..... Petitioner
                                                   Through:     Mr.Abhishek Puri, Adv.

                                                   versus

                                CONSORTIUM OF SREE-MEIL-VNGS            ..... Respondent
                                              Through:  Mr.Arun Kumar Varma, Sr. Adv.
                                                       with Mr.Purvesh Buttan & Mr.Fahan
                                                       Imtiaz, Advs.
                                CORAM:
                                HON'BLE MS. JUSTICE REKHA PALLI

                                             ORDER

% 23.12.2020 I.A. 12641/2020

1. Exemption allowed, subject to all just exceptions.

2. The application stands disposed of.

I.A. 12640/2020

3. This is an application filed by the respondent seeking early hearing of IA No.15613/2018 wherein it has sought release of the sum of Rs.242,79,51,528/- deposited by the petitioner as a condition of the stay of the Award.

4. Learned senior counsel for the respondent submits that the petitioner is illegally withholding a bank guarantee for a sum of Rs.272.32 crores furnished by the respondent, towards liquidated damages and interest Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:24.12.2020 12:59:47 erroneously imposed by the petitioner, as also the two performance bank guarantees of Rs.102.04 crores, which it is liable to return as the period is expiring on 25.12.2020. He submits that the levy of the liquidated damages has already been found to be illegal by the learned Tribunal under the impugned Award and therefore, by placing reliance on the decision dated 20.06.2020 of a Coordinate Bench in Technimont Private Limited & Ors. Vs. ONGC Petro Additions Limited, OMP(I) (COMM) 87/2020, he contends that once the Tribunal has held the issue of delay against the petitioner, it is not entitled to withhold the said bank guarantees furnished on account of the illegal levy of liquidated damages. He, therefore, prays that the amount deposited by the petitioner ought to be released in favour of the respondent without requiring it to furnish any further security.

5. Issue notice. Mr.Abhishek Puri, Advocate accepts notice on behalf of the petitioner. He prays for and is granted two weeks' time to file reply. Rejoinder thereto, be filed within two weeks thereafter.

6. At request, list on 08.02.2021 along with IA No.15613/2018.

REKHA PALLI, J DECEMBER 23, 2020 gm Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:24.12.2020 12:59:47

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Delhi High Court - Orders