Bombay High Court
Offshore Infrastructures Ltd vs Bharat Petroleum Corporation Ltd on 12 April, 2022
Author: G.S.Kulkarni
Bench: G.S.Kulkarni
Digitally signed
by VIDYA
VIDYA SURESH AMIN
SURESH Date:
2022.04.13
AMIN 10:48:30
+0530
14.CARAP(L)8953_2020.doc
Vidya Amin
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
COMMERCIAL ARBITRATION APPLICATION (L) NO. 8953 OF 2020
Offshore Infrastructures Ltd. .. Applicant
Vs.
Bharat Petroleum Corporation Ltd. .. Respondent
Mr. Sarosh Mohammed i/. M/s. Praxis Legal for the applicant.
Mr. Amol Bavare a/w. Ms. Vrushali Pokharna i/b. Pragnya Legal for the
respondent.
CORAM : G.S.KULKARNI, J.
DATE : 12 April, 2022
P.C.:
1. This is an application filed under section 11 of the Arbitration
and Conciliation Act, 1996 (for short, "the Act") whereby the applicant
has prayed for appointment of an arbitral tribunal to adjudicate the
disputes and differences between the parties, which have arisen under
the Letter of Acceptance dated 10 April, 2017 for the work of Piping
and Mechanical Works for Fire Water and Process Cooling Water system
network in Salt Water Basin area at BPCL, Mumbai Refinery. There is an
arbitration agreement between the parties, which is contained in
Clause 91A of the General Contract Conditions. There is no dispute on
the existence of the Arbitration agreement.
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2. The case of the applicant is that it had completed the contractual
work on 31 October, 2019 and subsequent to which a letter dated 24
August, 2020 was addressed to the respondent calling upon the
respondent to settle and pay all the pending dues. By further letter
dated 31 August, 2020, a correction in the claim amount was
communicated by the applicant to the respondent. However, as the
claims of the applicant are stated to be not settled, a notice dated 30
September, 2020 was issued by the applicant to the respondent
invoking arbitration. As the respondent did not agree in appointing an
arbitral tribunal for adjudication of the disputes, the present
application has been filed.
3. Learned counsel for the respondent, on instructions, submits
that the case of the respondent is that all dues of the applicant have
been settled and also no claim certificate has been issued by the
applicant in favour of the respondent. Such contention as urged on
behalf of the respondent is denied by the applicant. Hence, as to
whether any claim of the applicant subsists becomes an area of dispute,
which can be resolved only in the arbitral proceedings.
4. In the above circumstances, as there exists arbitration agreement
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between the parties as also there is an invocation of the arbitration
agreement by the applicant's notice, as noted above, which was not
responded by the respondent, the Court would have to proceed to
exercise jurisdiction under Section 11(6) of the Act. The application is
hence required to be allowed. It is accordingly allowed by the
following order:
ORDER
(i) Mr. Justice Jainarayan Patel, Former Chief Justice of the Calcutta High Court, is appointed as a sole arbitrator to adjudicate the disputes between the parties.
(ii) The learned sole arbitrator, before entering the arbitration reference, shall forward a statement of disclosure as per the requirement of Section 11(8) read with Section 12(1) of the Arbitration and Conciliation Act,1996, to the Prothonotary & Senior Master of this Court by email id - [email protected], to be placed on record of this application with a copy to be forwarded to both the parties;
(iii) At the first instance, the parties shall appear before the prospective arbitrator within 15 days from today on a date which may be mutually fixed by the learned sole arbitrator;
(iv) The Statement of Claim to be filed within four weeks of 3/4
14.CARAP(L)8953_2020.doc the learned arbitrator entering reference;
(v) The fees payable to the arbitral tribunal shall be as prescribed under the Bombay High Court (Fees Payable to Arbitrators) Rules,2018 and shall be borne by the parties in equal proportion.
(vi) All contentions of the parties are expressly kept open;
(vii) The application is disposed of in the above terms. No costs.
(vi) Office to forward a copy of this order to the learned Arbitrator on the following address:
Mr. Justice Jainarayan Patel, Former Chief Justice of the Calcutta High Court, Address: Flat No.2501, Celesta Planet Godrej, 30, K.K. Marg, SGM Chowk (Jacob Circle), Mahalaxmi, Mumbai - 400 011.
Contact: 9167888444 / 9422803450
(G.S.KULKARNI, J.)
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