Mcdermott International Inc. vs Burn Standard Co. LTD.

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2006 Supreme(SC) 493

B.P.SINGH, S.B.SINHA
Mcdermott International Inc. – Appellant
Versus
Burn Standard Co. LTD. – Respondent

Judgement Key Points

The provided legal document does not explicitly mention or discuss the concept of idle labor, idling charges, or idle manpower. There are no references or discussions related to claims, compensation, or considerations specifically addressing costs incurred due to labor or manpower being idle or unproductive during the course of the contract or arbitration proceedings.

JUDGMENT

S.B. Sinha, J. —

INTRODUCTION

Oil was discovered in the Bombay High Region in 1974 whereupon a plan of rapid development of off-shore oil and gas production was embarked by the Government of India through Oil and Natural Gas Commission (ONGC). With a view to achieve exploration of production programme, ONGC appointed contractors to fulfill substantial portions of its off-shore construction requirements. Burn Standard Company Limited (for short "BSCL") was interested in the second stage of platform construction of ONGC, i.e., structural and progress fabrication and material procurement. Four contracts were thereafter awarded in favour of BSCL for fabrication, transportation and installation of six platforms bearing No. ED, EE, WI-8, WI-9, WI-10 and N3 and associated pipelines. They were to be installed in ONGCs Bombay High Sea.

CONTRACT

2. The said contracts covered:

(i)Material procurement and fabrication of the ED and EE jackets, piles and decks.

(ii)Transportation and installation of the ED and EE jackets, piles and decks.

(iii)Material Procurement and fabrication of the WI-8, WI-9, WI-10 and N-3 Jackets, piles, temporary decks and decks (the "Four Platform Fabrication M

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Judicial Analysis

PARMATMA SAHAI VS STATE OF U. P. - 2013 0 Supreme(All) 1835: This case explicitly states that the judgment in McDermott International Inc. v. Burn Standard Co. (2006) 11 SCC 181 has been overruled or abrogated by subsequent Supreme Court decisions, specifically referring to the case of M/s Indian Farmers Fertilizer Co-Operative Ltd. (IFFCO) v. Mahanagar Gas Ltd. This indicates that the case is no longer good law and is treated as bad law in current jurisprudence.

[Followed / Affirmed]:

Several references to the case in the context of arbitration, judicial review, and interpretation of contractual clauses show it remains a cornerstone authority.

[Questioned / Uncertain treatment]:

Some references, such as Executive Engineer, Rural Works Department VS Anil Sharma, Proprietary represented by its Proprietor Sri Anil Sharma - 2020 0 Supreme(Jhk) 390, Union of India, represented by the General Manager, South Eastern Railway, through Lalit Kumar Sahoo VS Santosh Dodrajka, son of Late Kanhialal Dodrajka - 2023 0 Supreme(Jhk) 985, State of Jharkhand VS Hardeo Singh, Contractor, through its Partner Sri Avtar Singh, Son of Hardeo Singh - 2024 0 Supreme(Jhk) 382, Aviva Life Insurance Company India Ltd VS Chitta Ranjan Das, S/o. Late Sh Jiban Krishna Das - 2024 0 Supreme(Jhk) 185, Executive Engineer, Water Ways Division No. 1, Chakradharpur, Water Resources Department VS Modi Project Ltd. - 2024 0 Supreme(Jhk) 23, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , etc.: These references often mention McDermott International Inc. along with other cases and sometimes include language that suggests the case’s treatment is reaffirmed or followed, but without explicit statements like "overruled" or "bad law." Their treatment appears consistent but not explicitly reaffirmed, leaving some ambiguity.

The extensive list of references that cite McDermott International Inc. as authority suggests it remains good law, but unless explicitly stated, the treatment in some instances could be neutral or reaffirmative rather than explicitly binding.

Some references, such as Committee of Management, District Cooperative Bank Ltd. VS U. P. Cooperative Institutional Service Board - 2019 0 Supreme(All) 1223, Sushil Kumar Mishra VS State Of U. P. - 2024 0 Supreme(All) 196, Badri Prasad VS Deputy Director Consolidation, Sultanpur - 2023 0 Supreme(All) 2615, Union of India VS Larsen And Tubro Limited - 2023 0 Supreme(All) 1232, indicate reliance on McDermott but do not clarify whether subsequent decisions have reaffirmed or questioned its validity.

2006 Supreme(SC) 493

B.P.SINGH, S.B.SINHAMcdermott International Inc. – AppellantVersusBurn Standard Co. LTD. – Respondent

Cases Referred (16)

Judicial Analysis

B.P.SINGH, S.B.SINHA
Mcdermott International Inc. – Appellant
Versus
Burn Standard Co. LTD. – Respondent