HINDUSTAN PETROLEUM CORPORATION LTD. vs G. R. ENGINEERING PVT. LTD.

Judgment text excerpt

CARBP.984.2018 - FINAL - June 17, 2025.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION COMMERCIAL ARBITRATION PETITION NO. 984 of 2018 Hindustan Petroleum Corporation Limited …Petitioner Versus G. R. Engineering Private Limited …Respondent Mr. Zal Andhyarujina Sr. Advocate a/w Mr. Vijay Purohit, Ms. Ishani Khanwilkar, Ms. Nitika Bangera, vis. Niyati Bogayta i/b P & A Law Offices Adv. For Petitioner. Mr. Haresh Jagtiani, Sr. Adv. a/w Mr. Suprabh Jain, Mr. Pushpvijay Kanoji, Mr. Pranay Kamdar i/b Suprabh Jain Adv. For Respondent. CORAM : SOMASEKHAR SUNDARESAN, J. RESERVED ON : January 29, 2025 PRONOUNCED ON : June 18, 2025 JUDGEMENT: Context and Background: 1. This Petition under Section 34 of the Arbitration and Conciliation Act, 1996 (“the Act”) challenges an arbitral award dated May 2, 2018 (“ Impugned Award”) passed in favour of the Respondent, G.R. Engineering Private Limited (“GRE”) by an arbitral tribunal allowing a claim against the Petitioner, Hindustan Petroleum Corporation Ltd. (“HPCL”). Digitally signed by AARTI Page 1 of 39 AARTI GAJANAN GAJANAN PALKAR June 18, 2025 PALKAR Date: 2025.06.18 Aarti Palkar, PS 12:27:20 +0530 CARBP.984.2018 - FINAL - June 17, 2025.doc 2. HPCL invited bids and awarded GRE a contract to construct twelve “mounded bullets” to store liquified petroleum gas at HPCL’s refinery at Mahul (“Project”). Specific elements of the mounded bullets were to conform to the usage of reinforced cement concrete (“ RCC”) of “M30 grade”. The Project was to be completed by December 5, 2007 but was completed on February 2, 2010. Disputes and differences between the parties arose out of HPCL computing liquidated damages in the payments due on invoices raised by GRE. HPCL also withheld various oth