Authority: Supreme Court of India, Civil Original Jurisdiction

Order Date: 25 September 2026

Case Overview

  • Parties: Petitioner Lorven Energies India Private Limited (formerly Suaval Lorven India Private Limited); Respondents Neo Structo Construction Pvt. Ltd. and Petrofac International (UAE) LLC.
  • Background: Neo Structo was awarded the EPC contract for Bharat Petroleum Corporation Limited’s MSBP Kochi Refinery project and subcontracted piping and equipment erection work to Neo Structo, which issued Service Purchase Order No. NSC‑KL/112/19‑20 dated 12‑02‑2020 to Lorven for over Rs 2.38 crore for insulation services.
  • Payment dispute: Lorven raised invoices from May 2020; Neo Structo failed to pay the full amounts. To resolve this, the parties entered a Tripartite Agreement dated 02‑12‑2020, obligating Petrofac to make direct payments to Lorven. Article 8 of the agreement provided that any arbitration would be conducted in New Delhi, in English, under the Arbitration and Conciliation Act, 1996.
  • Further breach: Despite the Tripartite Agreement, payments remained unpaid. Respondents terminated the tripartite arrangement by email on 20‑03‑2021, restricting Lorven from completing the balance work. Lorven issued a legal notice on 04‑05‑2021, approached the MSME Samadhan portal on 01‑07‑2021, and sent a demand‑cum‑notice invoking arbitration on 23‑08‑2024. No arbitrator was appointed; Lorven initially approached the Delhi High Court for appointment of an arbitrator, withdrew that petition on 19‑12‑2025, and filed the present petition under Section 11 of the Arbitration and Conciliation Act, 1996.
  • Court proceedings: The Supreme Court heard counsel for both sides and examined the material placed on record.

Final Outcome

  • The petition is allowed; Justice Rakesh Kumar Jain, former Judge of the Punjab and Haryana High Court and former Judicial Member of the National Companies Law Tribunal, is appointed as the sole arbitrator.
  • The seat and venue of arbitration are New Delhi, India, as stipulated in the Tripartite Agreement.
  • The arbitrator shall have the liberty to fix his own remuneration/fees.
  • All pending interlocutory applications, if any, are disposed of.

Topics: Arbitration, Contract Dispute, Energy Services