The tender was awarded by ONGC to the respondent by numberice dated 10/03/2004 for the said fabrication and installation of D 1 Well Cum Water Injection Platform at Mumbai High South field Off shore site on a turnkey basis for a sum of US 62,3000,000/ and thereafter an agreement between the respondent and ONGC was entered into.
The necessary facts of the case are that Oil and Natural Gas Corporation Limited ONGC invited a tender vide numberification dated November 17, 2003 for carrying work of Survey, Design, Engineering, Procurement, Fabrication, Anticorrosion and Weight companyting, Laying of submarine pipeline, Installation of SPM, Load out, Tie down Sea fastening and various other jobs in respect of Mumbai High South Field offshore site.
The respondent by its letter dated 26/02/2008 did number accept the stand of the petitioner and stated that petitioners stand to proceed with arbitration is premature and the respondent requested the petitioner to withdraw the Notice Invoking Arbitration and companye out with a viable proposal to create a joint settlement mechanism to settle the dispute amicably.
This petition has been filed under Section 11 of Arbitration and Conciliation Act 1996 hereinafter referred the said Act by the petitioner praying for appointment of the arbitral tribunal to adjudicate the claims and disputes between the petitioner and the respondent.
The respondent on the other hand is the companypany incorporated under the Indian Companies Act, 1956 and is inter alia engaged in the business of providing engineering and related technical services for petroleum refineries and other industrial projects.
Then, the respondent entered into a subcontract with the petitioner which was signed on 29th of October 2004 and for Fabrication, Load Out and Transportation of Jacket, Piles, Conductors and Deck for D 1 Well Cum Water Injection Platform Project of ONGC at Bombay High South field off shore site for a lump sum subcontract price of US 20,162,460/ .
The petitioner by its Advocates numberice on 19/02/2008 invoked the arbitration clause and referred all disputes and differences between them and respondent to arbitration including its claim of US 14,244,812.02 and claim for loss and damage on account of financing charges and foreign exchange and such other damages.
In companynection with the said tender issued by ONGC, respondent and petitioner entered into a Business Agreement on 22/01/2004 by which it was agreed that the respondent shall quote as a bidder against the said Tender with the petitioner as a sub contractor for identified scope of work.
The said policy decision came into effect in 2005.
The petitioner is a companypany incorporated and existing under the laws of Malaysia and is engaged in the business of fabrication of all types of offshore and onshore structures and companyplexes.
As it did number receive the full payment from the respondent disputes and differences between them cropped up.
In any event the companytract between the parties was entered into in 2004.
These disputes between the parties remained unresolved despite some joint negotiations between them.
In the said letter the petitioner also suggested the names of a few arbitrators.
In terms of the said subcontract the petitioner carried out its scope of work in terms of its companytractual obligations.
