BHARAT HEAVY ELECTRICLAS LIMITED vs OFFSHORE INFRASTRUCTURE LIMITED

Judgment text excerpt

$~30 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of decision: 23.04.2026 + O.M.P. (COMM) 273/2018 & I.A. 8624/2018 BHARAT HEAVY ELECTRICLAS LIMITED .....Petitioner Through: Ms. Mani Gupta & Ms. Sonali Jain, Advs. versus OFFSHORE INFRASTRUCTURE LIMITED .....Respondent Through: Mr. Gaurav Dudeja, Adv. CORAM: HON'BLE MR. JUSTICE AVNEESH JHINGAN AVNEESH JHINGAN, J. (ORAL) 1. This petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short „the Act‟) seeking setting aside of arbitral award dated 21.12.2017. 2. The short issue is that whether the unilateral appointment of the sole arbitrator is in violation of amended Section 12(5) of the Act. 3. The brief facts are that the petitioner was awarded a work contract by M/s HPCL Mittal Energy Limited, valuing Rs.15,97,99,800/-. The petitioner further gave a sub contract to the respondent vide Letter of Intent dated 28.05.2010. Dispute arose between the parties to the lis. Clause 33 of the General Conditions of Contract (for short „GCC‟) reproduced below provides for dispute resolution through arbitration. “33.0 ARBITRATION: All disputes between the parties to the contract arising out of or in relation to the contract, other than those for which the decision of the Engineer or any other person is by the contract expressed to be final Signature Not Verified Signed By:HONEY O.M.P. (COMM) 273/2018 Page 1 of 9 ARORA Signing Date:25.04.2026 10:29:21 and conclusive, shall after written notice by either party to the contract to the other party, be referred to sole arbitration of the General Manager or his nominee. The arbitration shall be conducted in accordance with the provisions of the Arbitration and Reconciliation Act, 1996. The parties to the contract understand and agree that it will be no obje