Authority: Supreme Court of India (Civil Original Jurisdiction)

Order Date: 05 October 2026

Case Overview

  • Petitioner: HPCL Rajasthan Refinery Limited, a public‑sector joint venture of Hindustan Petroleum Corporation Limited and the Government of Rajasthan.
  • Respondent: Chemie Tech DMCC, a Dubai‑registered subsidiary of Chemie Tech Limited (incorporated in Jersey, Channel Islands), providing EPC solutions.
  • Dispute stems from three tender contracts awarded to the Respondent: Package 7A (dated 06‑09‑2021), Package 6A (dated 13‑11‑2021), and EPCC‑11 (dated 13‑11‑2021), each governed by identical Special Conditions of Contract (SCC).
  • SCC Clause 99.1.2 contains an arbitration clause mandating resolution by a Sole Arbitrator with the seat of arbitration in New Delhi, India.
  • Alleged breaches by the Respondent include failure to furnish Contract Performance Bank Guarantees and missing project milestones, leading the Petitioner to issue Show Cause Notices and terminate all three contracts via Termination Notices dated 18‑02‑2023.
  • The Petitioner issued a Notice of Arbitration on 30‑01‑2026, proposing three former High Court Judges as Sole Arbitrator; the Respondent declined consent in its reply dated 01‑03‑2026.
  • Consequently, the Petitioner filed an arbitration petition under Section 11(6) of the Arbitration and Conciliation Act, 1996.
  • The Court heard counsel for both parties and examined the material placed on record.

Final Outcome

  • The Supreme Court allowed the arbitration petition and appointed Justice Indira Banerjee, former Judge of this Court, as the Sole Arbitrator to resolve the disputes arising under the three tender contracts.
  • The seat and venue of arbitration are confirmed as New Delhi, India, in accordance with the arbitration agreement.
  • The Arbitrator is empowered to determine her own remuneration/fees in consultation with the parties; fees and expenses shall be borne as per the arbitration agreements, subject to final cost determination in the award.
  • Although the disputes are referred to a common arbitrator due to common parties, the Arbitrator shall treat each Tender Contract as an independent arbitral reference and address issues separately.
  • All pending interlocutory applications, if any, are disposed of.

Topics: Arbitration, Oil & Gas EPC Contracts