2026:BHC-OS:1440 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION NEETA COMMERCIAL ARBITRATION PETITION (LODG.) NO. 28685 OF 2024 SHAILESH WITH SAWANT Digitally signed by INTERIM APPLICATION (LODG.) NO. 28770 OF 2024 NEETA SHAILESH SAWANT Date: 2026.01.20 IN

08:56:21 +0530 COMMERCIAL ARBITRATION PETITION (LODG.) NO. 28685 OF 2024 Hindustan Petroleum Corporation Ltd. ….. PETITIONER : VERSUS :

Om Constraction on behalf of Om Constraction Nice Projects Limited JV …. RESPONDENT Mr. Zubin Behramkamdin, Senior Advocate with Mr. Vijay Purohit, Mr. Pratik Jhaveri and Mr. Samkit Jain i/b. P & A Law Offices, for the Petitioner.

Mr. Akshay Ringe with Mr. Akash Menon and Ms. Anjana Vijay, for the Respondent.

CORAM : SANDEEP V. MARNE, J.

JUDG. RESD. ON : 5 JANUARY 2026.

JUDG. PRON. ON : 19 JANUARY 2026.

JUDGMENT :

1) By this Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), Petitioner challenges Award of the learned sole Arbitrator dated 18 June 2024. By the impugned Award, the Arbitral Tribunal has allowed the claim of the Respondent in the sum of Rs.19,82,79,601/- alongwith interest @12% p.a. till the date of the Award. The Arbitral Tribunal has further directed release of hold on the amount of security deposit and retention amount. The Tribunal has also granted post Award interest @ 15% p.a. from 1 September 2024.

FACTS

2) Petitioner is a State-owned oil company and a Government of India Undertaking. The Respondent is a Joint Venture of Om Constraction and Nice Projects Ltd. The Petitioner issued tender for execution of civil, structural and piping work at the second-generation Ethanol Bio Refinery, Bathinda on 30 April 2021 and corrigendum dated 18 May 2021. A Joint Venture (JV) was executed between Om Constraction and Nice Projects Ltd. on 31 May 2021. Om Constraction is a proprietary concern of Mr. Satya Pal Yadav whereas Nice Projects Ltd. is a company registered under the provisions of Companies Act, 1956. The Joint Venture /Consortium Agreement dated 31 May 2021 was executed by Mr. Sartaj Ali in his capacity as Director of M/s. Nice Projects Ltd. The name of JV was indicated as ‘Om Constraction-Nice Projects Ltd.(JV)’. The JV submitted its bid in pursuance of tender notice. Respondent claims that another JV Agreement was executed on 2 July 2021, in which the share of Om Constraction in the JV was indicated as 75% and of Nice Projects Ltd. as 25%. According to the Petitioner said JV Agreement dated 2 July 2021 was not submitted to it.

3) The National Company Law Tribunal, New Delhi Bench (NCLT) had passed order dated 12 February 2021 under Section 14 of the Insolvency and Bankruptcy Code, 2016 admitting Company Petition No.3042/ND/2019 and had initiated Corporate Insolvency Resolution Proceedings (CIRP) against Nice Projects Ltd. According to the Petitioner, this information was suppressed by the Respondent, and the JV Agreement dated 31 May 2021 was signed by the suspended director of M/s. Nice Projects Ltd. and not by the Interim Resolution Professional appointed vide Order dated 12 February 2021.

4) The Respondent-JV emerged as successful bidder and the Petitioner issued Purchase Order dated 15 July 2021 for execution of the work. On the same day, Petitioner also issued Letter of Award to the JV for the amount of Rs. 111,40,31,358/-. The Respondent commenced execution of the work. On 17 August 2021, 20 August 2021, 3 September 2021 and 1 October 2021, Petitioner issued show cause notices to the JV alleging slow progress of the work. On 30 May 2022, the date of completion of work expired. On 1 June 2022, the Respondent applied for extension of time. On 7 June 2022, the Petitioner extended the time till 14 July 2022. On 17 June 2022, the Petitioner issued final show cause notice to the JV. On 24 August 2022, the Respondent further requested for extension of time. However, on 26 August 2022, Petitioner terminated the contract. On 7 September 2022, the Respondent invo