GAIL GAS LTD Vs. BAPU INDUSTRIES

JUDGEMENT

(1.) This is an application by the Respondent praying that the main petition be dismissed as not maintainable and for a declaration that the District Court at Firozabad, Uttar Pradesh alone has jurisdiction to entertain the petition.

(2.) The background to this application is that the main petition under Section 34 of the Arbitration and Conciliation Act, 1996 ('Act') has been filed by Gail Gas Limited ('GAIL') challenging the impugned Award dated 20th August, 2014 passed by the sole Arbitrator in the disputes between GAIL and the Respondent, Bapu Industries, arising out of a Gas Supply Contract ('GSC') dated 22nd September, 2000 for the supply of gas from 30th September, 2001 till 31st March, 2006.

(3.) The Respondent is the manufacturer of fancy glass, bangles and block glasses at Firozabad (Uttar Pradesh). The above GSC was for supply of natural gas for use as a fuel for its furnace used in manufacturing of fancy glass items etc. Under Article 4.01 of the GCC, GAIL provided the piping, control, regulator and metering equipment for the Gas Metering Station. The Gas Metering Equipment was installed in the factory premises of the Respondent. However, in terms of the GCC, the said equipment remained the property of GAIL. It is further pointed out that while GAIL, under Clause 11.06 of the GCC, had an "unrestricted right to take action including stoppage of gas supply, imposition of penalty and termination of the Gas Supply Contract" in the event of tampering of the 'Gas Metering Skid' or its 'associated piping/accessories', the safety and security of the metering skid/equipment along with the piping and accessories for gas supply was the exclusive responsibility of the Respondent.