Bombay High Court
Punj Lloyd Limited And Anr vs Oil And Natural Gas Corporation Limited on 6 March, 2019
Author: B. P. Colabawalla
Bench: B. P. Colabawalla
Ladda
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
COMMERCIAL ARBITRATION PETITION No. 157 of 2017
Punj Lloyd Limited & Anr ..Petitioners.
Vs.
Oil & Natural Gas Corporation Ltd. ..Respondent.
WITH
COMMERCIAL ARBITRATION PETITION No. 191 of 2017
Oil & Natural Gas Corporation Ltd. ..Petitioner.
Vs.
Punj Lloyd Limited & Anr ..Respondents.
Mr. Prateek Seksaria a/with Nivit Srivastava and Sneha Patil I/by
Maniar Srivastava Associates for Petitioners in CARBP/157/2017
and Respondents in CARBP/191/2017,
Mr. Zubin Behram Kamdin a/with Mr. Vyom Shah, Mr. Aziz Khan
I/by Divya Shah Associates for Respondent No.1 in
CARBP/157/2017 and the Petitioner in CARBP/191/2017.
CORAM : B. P. COLABAWALLA, J.
DATED :- 6th March, 2019.
P.C. :-
1. When this matter was called out yesterday, after hearing the parties for sometime, I had asked the learned Counsel for ONGC to take instructions as to whether these appeals can be 1/3 904-carbp-157-17.doc ::: Uploaded on - 06/03/2019 ::: Downloaded on - 14/03/2019 01:22:32 ::: disposed of by continuing the interim order passed in these appeals till the hearing and final disposal of the arbitration proceedings.
This suggestion was made considering that the arbitration proceedings were at a very advanced stage and in fact the evidence of the claimant was already completed and the first witness of the respondent (ONGC) was under cross-examination.
2. To ensure that the claimant cannot take advantage of this order, even if they fail in the arbitration proceedings, I had put it to the learned Counsel appearing for the claimant (Punj Lloyd Ltd.) that if such an arrangement is agreed to by the ONGC, then, the ONGC would be entitled to encash the bank guarantees forthwith in the event claimant fails in arbitration. This was fairly agreed to by the learned Counsel appearing on behalf of the claimant ( Punj Lloyd Ltd.).
3. It was categorically stated before me that in the event the claimant looses in the arbitration, even if they challenge that award under Section 34 of the Arbitration and Conciliation Act, 1996, they would not seek a stay for encashment of the bank guarantees. It was further stated that till the disposal of the arbitration proceedings, the claimant would keep the bank 2/3 904-carbp-157-17.doc ::: Uploaded on - 06/03/2019 ::: Downloaded on - 14/03/2019 01:22:32 ::: guarantees valid and alive and which undertaking was also recorded by me by my earlier order dated 12 th December, 2018. It was in this light that the suggestion as mentioned earlier was put to the Counsel for ONGC.
4. When the matter is called out today, the learned Counsel appearing on behalf of the ONGC has stated before me that his clients are not agreeable to the aforesaid suggestion and would like to argue both the appeals.
5. In view of the this, list both the appeals for hearing and final disposal on 15th March, 2019.
(B.P. COLABAWALLA, J.) 3/3 904-carbp-157-17.doc ::: Uploaded on - 06/03/2019 ::: Downloaded on - 14/03/2019 01:22:32 :::