Authority: Supreme Court of India

Order Date: 31 July 2026

Case Overview

  • Parties: Expro North Sea Limited (UK incorporated petitioner) vs Hindustan Oil Exploration Company Ltd (Respondent No.1) and an additional respondent (Respondent No.2) to whom rights were assigned.
  • Contract: Operation and Maintenance (O&M) Contract dated 29 May 2019 for operation and maintenance of a Mobile Offshore Production Unit (MOPU) located at Key Gibraltar in the Mumbai Offshore Basin.
  • Assignment: Respondent No.1 entered into an Assignment Agreement on 19 June 2023, transferring its rights, title and obligations under the O&M Contract to Respondent No.2.
  • Termination: Respondent No.1 issued a notice of termination on 1 April 2025 citing operational difficulties.
  • Dispute: Petitioner claims outstanding dues of USD 1,913,715.37 and other contractual claims arising from termination; Respondents deny any liability.
  • Arbitration Notice: Petitioner served a notice of arbitration on 29 August 2025 under Clause 20.2 of the O&M Contract, nominating Hon’ble Ms. Justice Chitra Venkataraman (Retd.) as sole arbitrator. Respondents did not consent to the nomination, leading to the present petition.

Court Findings and Order

  • The Court, after hearing counsel (Petitioner: Mr. Sumeet Lall, AOR Mr. Nikhil Lal, Adv. Mr. Nicholas Choudhury, Adv. Ms. Muskaan Gopal, Adv. Ms. Palak Rawat; Respondent counsel not listed), allowed the arbitration petition under Section 11(6) of the Arbitration and Conciliation Act, 1996.
  • Appointed Hon’ble Mr. Justice R. Suresh Kumar, former Judge of the Madras High Court, as the sole arbitrator to adjudicate the disputes.
  • Designated Chennai, India as the seat and venue of arbitration in accordance with the arbitration agreement.
  • Directed that parties may raise all available contentions before the sole arbitrator.
  • Empowered the sole arbitrator to determine his/her own remuneration/fees.
  • Disposed of any pending interlocutory applications.

Final Outcome

  • The arbitration proceeding will be conducted before Justice R. Suresh Kumar in Chennai, with full liberty to the parties to present their claims and the arbitrator to fix fees, thereby providing a mechanism to resolve the USD 1.9 million dispute.

Topics: Arbitration, Oil & Gas Services, Contract Dispute