LAWS(SC)-2006-5-72

MCDERMOTT INTERNATIONAL IN Vs. BURN STANDARD CO LTD

Decided On May 12, 2006
DERMOTT INTERNATIONAL INC. Appellant
V/S
BURN STANDARD CO. LTD. Respondents

JUDGEMENT

(1.) 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 sub- stantial 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 ONGC's Bombay High Sea. CONTRACT

(2.) THE said contracts covered:

(3.) HOWEVER, with regard to the fabrication and installation of off-shore platforms, BSCL decided to give a sub-contract of the work to Mllon a project by project basis. BSCL while retained the job of fabrication of the ED and EE decks, six helidecks and procurement of materials for the overall project other than pipeline materials and some process equipment which was issued by ONGC sub-contracted the remaining work.