* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment Reserved on: 20^th February, 2026 Judgment pronounced on: 11th March, 2026 + O.M.P. (COMM) 191/2019 MAN INDUSTRIES (INDIA) LIMITED .....Petitioner Through: Mr. Jayant Mehta, Sr. Advocate with Ms. Amrita Singh, Mr. Sanket Khandelwal, Mr. Prasang Sharma and Mr. Vinod Mehta, Advocates.

versus GAIL (INDIA) LIMITED .....Respondent Through: Mr. K.M. Natraj, ASG with Mr. Lalit Chauhan, Ms. Laxmi Chauhan, Mr. Manish Yadav and Ms. Nikita Chauhan, Advocates.

CORAM:

HON'BLE MR. JUSTICE AMIT BANSAL

JUDGMENT

AMIT BANSAL, J.

1. The present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the Act’) on behalf of the claimant in the arbitration proceedings challenging the Award dated 7^th January 2019 (hereinafter ‘Impugned Award’) passed by the Arbitral Tribunal

2. The petitioner (claimant in the arbitration proceedings) shall hereinafter be referred to as ‘Man Industries’ and the respondent (respondent in the arbitration proceedings) shall hereinafter be referred to as ‘GAIL’.

FACTUAL BACKGROUND

3. Brief facts leading to the present petition are as under:

3.1. Man Industries is engaged in the business of manufacture of carbon steel coated line pipes which are used in the transportation of petroleum/

natural gas and other related products.

3.2. GAIL (India) Limited is a public sector undertaking optimising use of natural gas and its fractions.

3.3. GAIL planned to lay onshore a Regassified Liquid Natural Gas (RLNG) pipeline, from its despatch terminal at Dabhol, Maharashtra to receipt terminal at Bibadi near Bangalore, Karnataka (hereinafter the ‘Dabhol-Bangalore project’)

3.4. GAIL, through its agent M/s Engineers India Ltd. (EIL) invited offers against its bid document for procurement of API 5L Grade X-70 PSL 2 carbon steel line pipes in respect of its Dabhol-Bangalore project.

3.5. The bid of Man Industries was accepted vide Fax of Acceptance dated 26^th August 2010 (hereinafter ‘FOA’). Thereafter, a formal purchase order was issued by GAIL in favour of Man Industries vide Purchase Order dated 19^th October 2010 (hereinafter the ‘Purchase Order’). The Purchase Order specifies that all other provisions covered under the bid document, General Conditions of Contract-Goods (hereinafter ‘GCC-Goods’) and Special Conditions of Contract-Goods (hereinafter ‘SCC-Goods’) would be applicable to supply of bare line pipes.

3.6. In terms of the Purchase Order, Man Industries was required to supply the bare line pipes to GAIL as per a progressive delivery schedule. The delivery was to be done in a staggered manner, with the first lot to be delivered by the 5^th month from the date of FOA, i.e. 25^th January 2011 and the last delivery by the 10^th month from the date of FOA, i.e. 25^th June 2011. The dates of delivery as per the delivery schedule at Annexure-3 of the Purchase Order were 25^th January 2011, 25^th February 2011, 25^th March

2011, 25^th April 2011, 25^th May 2011 and 25^th June 2011.

3.7. Man Industries was also required to maintain dump yards at designated sites for a period of 2 months beyond the last date of delivery of the coated pipes at those dumpsites, without being entitled to any payment from GAIL for the said period of 2 months.

3.8. On 3^rd August 2012, a ‘No Claim Certificate’ was issued by Man Industries to GAIL which stated that a total sum of Rs.64,13,790.57/- was due and all other claims under the contract stand fully and finally settled except the Price Reduction Schedule (hereinafter ‘PRS’) amount

3.9. The total price for supply of the aforesaid coated pipes was Rs.125,39,40,190/-. As stipulated in the Purchase Order, 90% of the payment was to be made progressively against the receipt of the coated pipes at the dumpsites. The balance 10% of the total value was to be paid to Man Industries within 30 days from handing over of coated pipes to the laying contractor of GAIL.

3.10. Disputes arose between the parties and Man Industries invoked the arbitration cl