TRIVENI GLASS LTD Vs. GAIL (INDIA) LTD

JUDGEMENT

(1.) This petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 seeking to impugn the Award dated 29.09.2014 passed by the learned Arbitrator.

(2.) The petitioner owns and operates a Glass Plant at Kondagudem, Dwarapalli Mandal, West Godavari District, Andhra Pradesh. It sources gas for its various industrial applications to manufacture different types of glass. The respondent is a Government company which has a right to procure and sell the gas from its existing sources of ONGC, Tapti, Panna-Mukta and Ravva areas and owns and operates pipeline network.

(3.) The petitioner entered into a Gas Sales and Transmission Agreement (GSTA) dated 30.12.2010 with the respondent for supply of gas to its aforesaid plant. The respondent agreed to sell, transport and deliver gas at the delivery point in the said plant. The petitioner was to obtain 30,000 SCM of gas on the stated terms and conditions. Clause 5.6 of the Agreement provided that the terms and conditions would be spelt out in the side letter as Appendix 1 for charges for overdrawal of gas.