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18. Mr. Nandrajog also states that the Petitioner had been constantly requesting for renewal of the 2018 Contract to extend the contract period and the time for mobilization of the Rig in terms of the 2018 Contract.

19. Mr. Nandrajog places emphasis on the letter dated 27.05.2022 written by the Petitioner to the Respondent informing the Respondent that the insurance underwriter of the Petitioner has concluded that it is not viable to revive the Petitioner‟s Rig, Valiant Driller, and the Rig has been declared as a "Constructive Total Loss". In view of the Rig being declared a "Constructive Total Loss", the Petitioner stated that the Agreement is to be deemed as terminated in accordance with the terms of the 2018 Contract. He states that on 05.08.2022, the Respondent has accepted the request of termination of the Petitioner and had terminated the Contract of the Petitioner with effect from 17.05.2021.

Neutral Citation Number: 2022/DHC/005749

20. It is contended by Mr. Nandrajog that the Respondent cannot afford to consider the Rig which has been totally damaged by the Cyclone and which has been declared as "Constructive Total Loss" by the insurance underwriter and deemed not viable for revival. He further submits that it is not the case of the Petitioner that they have any other alternate Rig which can be offered to the Respondent.

24. On 27.05.2022, the Petitioner wrote another letter to the Respondent herein highlighting that the insurance company has declared its Rig as "Constructive Total Loss" and that the Contract be deemed to be terminated. The said letter reads as under:

"Subject : Request ONGC for mutual Consent to treat the Charter Hire Agreement of Rig Valiant "Valiant Driller" for termination Reference 1. Agreement No. MR/DS/MM(CH)/8RIGS/2017/1346 1C17001/9010026434 dated 26"

Our sincere thanks to ONGC for all the support extended Post "Tauktae" and during the Salvage Operations.

As intimated in our letter dated 12" May 2022, the inspection by the concerned authorities including class and insurance have been carried out. Our Insurance Underwriter, New India Assurance Company Ltd has concluded that it is not viable to revive Valiant Driller as a drilling unit for deploying under the current above referred Agreement as cost of revival is extremely higher than the applicable Insurance coverage of the Rig, and therefore insurance have considered the Rig is a Constructive Total Loss. The declaration from Insurance Company (The New India Assurance Co. Ltd) is attached herewith for your reference and considerations.