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IN THE HIGH COURT OF DELHI AT NEW DELHI
SUBRAMONIUM PRASAD
In the Matter of: Gujarat State Fertilizers and Chemicals Ltd. – Appellant
Versus
Gail (India) Ltd. – Respondent
| Table of Content |
|---|
| 1. challenge to arbitration award (Para 1 , 2 , 3) |
| 2. government's role in gas pricing (Para 4 , 18 , 19) |
| 3. background and context of contracts (Para 5 , 6 , 10) |
| 4. limitations on gas use as per government directives (Para 21 , 22) |
| 5. final decision on claims and counterclaims (Para 34 , 39) |
JUDGMENT :
SUBRAMONIUM PRASAD, J.
1. The challenge in the present petitions being O.M.P. (COMM) 301/2023, O.M.P. (COMM) 302/2023, O.M.P. (COMM) 303/2023, O.M.P. (COMM) 304/2023 and O.M.P. (COMM) 305/2023, is to the Award dated 29.07.2023 passed by the Ld. Sole Arbitrator in Arbitration Case Nos.501/2019, 502/2019, 503/2019, 504/2019 and 500/2019.
2. The parties to the present petitions had entered into the following five contracts, whereunder the Respondent/GAIL was sourcing gas from various oil fields and supplying the same to the Petitioner/GSFCL:
(a) Gas Sales and Transmission Contract dated 05.07.2008, whereunder the Respondent supplies Gas sourced from Panna-Mukta-Tapti fields. The Agreement is referred to as PMT-PSC Contract, which is dealt with in O.M.P. (COMM) 301/2023;
(b) Gas Sales and Transmission Contract dated 05.07.2008, whereunder the Respondent supplies Gas sourced from P
The court upheld that obligations under gas supply contracts are subject to government directives, affirming the validity of pricing based on regulatory compliance.
(1) If Arbitrator construes term of contract in a reasonable manner, award cannot be set aside with reference to deduction drawn from construction.(2) Setting aside of arbitral award – Narrow scope o....
The court granted interim relief under Section 9 of the Arbitration Act, emphasizing a strong prima facie case and balance of convenience for securing the disputed amount in arbitration.
The challenge to the impugned award is predicated on Section 34(2A) and 34(2)(b)(ii) read with clauses (ii) and (iii) of Explanation 1 of the Arbitration and Conciliation Act, 1996.
The court affirmed that limited judicial review under Section 34 of the Arbitration Act does not allow for re-evaluation of arbitration awards unless they are demonstrably perverse, illegal, or devoi....
The interpretation of contractual clauses by an Arbitrator cannot be interfered with unless it is unreasonable or against settled legal principles.
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