Authority: Court
Order Date: 13 July 2026
Case Overview
- Petitioners: M/s. Adhunik Infrastructures Private Limited & Anr.
- Respondents: Union of India & others (respondent nos. 2 to 6), including ONGC as respondent No. 6.
- The writ petition (WPA 10504 of 2026) challenges ONGC’s refusal to refer a contractual dispute to the Outside Expert Committee (OEC) as mandated by Clause 25.1.2 and Clause 25.1.3 of the contract.
- Clause 25.1.2 requires any dispute, difference, question or disagreement relating to construction, meaning, operation, effect, interpretation or breach of the contract to be first referred to conciliation through an OEC constituted by the CMD of ONGC.
- Clause 25.1.3 limits OEC conciliation to disputes involving a disputed amount up to Rs 250 crore, calculated on the basis of claim and counter‑claim.
- The petitioners claim a total amount of Rs 2,13,31,40,869 (approximately Rs 213 crore), which falls within the Rs 250 crore ceiling.
- ONGC, by a communication dated 16 February 2026, rejected the petitioners’ request, stating that the claimed amounts pertain to price escalation, additional expenses during extension, and payments for extra/substituted items, which it said are outside the contract’s terms and therefore not amenable to OEC conciliation.
- Respondent No. 2 argued that the clause is not mandatory, justifying ONGC’s decision to decide the matter without OEC referral.
Final Outcome
- The Court held that the contractual provision for OEC conciliation is binding and that the respondents were obligated to refer the dispute to the OEC.
- The communication dated 16 February 2026 is set aside and quashed.
- Respondent No. 6 (ONGC) is directed to refer the matter to the OEC within four weeks from the date of this order and to obtain a decision from the OEC within that period.
- The writ petition (WPA 10504 of 2026) is disposed of.
- The Court ordered that urgent photostat certified copies of the order be supplied to the parties upon compliance with necessary formalities.
Topics: Court Order, Contractual Dispute, Outside Expert Committee