Authority: Calcutta High Court, Commercial Division
Order Date: 15 July 2026
Case Overview
- Petitioner: Shri Dipak Kumar, sole proprietor of Hindustan Construction (MSME contractor).
- Respondent: Eastern Coalfields Limited (ECL), subsidiary of Coal India Limited.
- Dispute stems from a contract dated 12 November 2022 for hiring HEMM to extract & transport 4.11 L.T. of coal and related activities, valued at Rs 15,85,85,822.31.
- Petitioner furnished a performance bank guarantee of Rs 15,85,859.
- Alleged breaches by respondent include: failure to provide hindrance‑free contiguous land causing project delays; mismatch between depot challans and railway receipts leading to an alleged shortfall of 12,849 metric tonnes of coal; unilateral imposition of electricity charges at Rs 112 per unit versus Rs 11.71 per unit for other contractors; compulsory sale of 50 % of production through e‑auction; issuance of two show‑cause notices in May 2025 and a termination notice dated 31 December 2025 with retrospective effect from 18 July 2025.
- Petitioner obtained a stay on the bank guarantee from the Asansol Commercial Court (Misc. Arbitration Case Commercial 03/2026).
- Respondent does not dispute the existence of the contract or the arbitration clause (Article 14 of the General Terms and Conditions) and consents to the appointment of an arbitrator.
Final Outcome
- The Court appoints retired Justice I.P. Mukerji as the sole arbitrator to adjudicate all disputes arising under the contract.
- Appointment is subject to compliance with Section 12(5) of the Arbitration and Conciliation Act, 1996.
- The arbitrator may fix his remuneration in accordance with the Fourth Schedule of the Act.
- All questions of arbitrability, claim admissibility, limitation, jurisdiction, and any other issues are left to the arbitrator for determination.
- The petition stands disposed of with the above directions.
Topics: Arbitration, Coal Contract Dispute