Sedco Forex International Drilling Inc vs The Oil & Natural Gas Corporation Ltd

The Supreme Court held that ONGC is liable to reimburse the applicant for customs duty paid under clause 15.5 of the contract dated 23.8.1988, despite ONGC's claims of estoppel based on the issuance of an essentiality certificate. The Court emphasized that the arbitration clause invoked by the applicant is valid and should be honored, allowing the dispute to be referred to arbitration. The Court directed the appointment of an arbitrator to resolve the matter, reinforcing the enforceability of arbitration agreements in commercial contracts.