HINDUSTAN PETROLEUM CORPORATION LIMITED Vs. OM CONSTRACTION ON BEHALF OF OM CONSTRACTION NICE PROJECTS LIMITED JV

JUDGEMENT

(1.) By this Petition filed under Sec. 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), Petitioner challenges Award of the learned sole Arbitrator dtd. 18/6/2024. By the impugned Award, the Arbitral Tribunal has allowed the claim of the Respondent in the sum of Rs.19,82,79,601.00 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 1/9/2024.

(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 30/4/2021 and corrigendum dtd. 18/5/2021. A Joint Venture (JV) was executed between Om Constraction and Nice Projects Ltd. on 31/5/2021. 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 dtd. 31/5/2021 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 2/7/2021, 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 dtd. 2/7/2021 was not submitted to it.

(3.) The National Company Law Tribunal, New Delhi Bench (NCLT) had passed order dtd. 12/2/2021 under Sec. 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 dtd. 31/5/2021 was signed by the suspended director of M/s. Nice Projects Ltd. and not by the Interim Resolution Professional appointed vide Order dtd. 12/2/2021.