Summary

Commercial Arbitration Petition No. 720 OF 2024

Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

This is a Petition filed under Section 34 of Arbitration and Conciliation Act, 1996 (Arbitration Act) challenging the Award made by the three-member Arbitral Tribunal dated 4 May 2024, as modified vide Section 33 Order dated 29 June 2024. By the impugned Award, the Arbitral Tribunal has rejected one claim, partly allowed two claims and has fully allowed three claims raised by the Respondent in relation to performance of contract for redevelopment of ONGC's Mumbai High South Field.

Petitioner-ONGC awarded contract to the Respondent for redevelopment of its Mumbai High South Field located about 160 km west- northwest of Mumbai, which included various works such as installation of Wellhead Platforms RS-18, RS-20 and RS-21, installation of clamp-on structures on Platforms RS-2 and RS-11, laying of submarine pipeline for 115.9 km, laying submarine cables etc. Respondent completed the work on time and Petitioner paid USD 214.71 million, Euro 7.81 million and INR 344.42 crores to the Respondent after completion of contract. Respondent claims to have performed additional works (amounting to Change Order under the contract) and raised six claims against Petitioner. Petitioner admitted that two claims related to additional work/change order, but according to Respondent, lesser amount is paid against those two claims than the one envisaged in the contract. Rest of the four claims were rejected by the Petitioner as not constituting additional work/change order. In the arbitration, the Tribunal has delivered Award dated 4 May 2024 (read with order dated 29 June 2024) rejecting one claim, partly allowing two claims and fully allowing three claims. Petitioner has accordingly filed the present Petition challenging the Award under Section 34 of Arbitration Act.

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