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Informist, Tuesday, Dec. 2, 2025

 

NEW DELHI – The Supreme Court Tuesday issued a notice to Jindal Drilling and Industries Ltd. on a plea by Oil and Natural Gas Corp. Ltd. challenging an arbitral award of $14.7 million. The case dates back to 2006, when ONGC entered into an agreement with Jindal Drilling to hire the latter's drilling unit RIG Noble Charlie Yester for drilling operations in offshore waters of India. ONGC also executed three more contracts with Jindal Drilling for three other works.

 

Jindal Drilling executed the works awarded under the contracts with ONGC and accordingly submitted various bills to the latter. ONGC did not dispute the bills but refused to pay the same. The oil exploration company reasoned that another company Discovery Enterprises Pvt. Ltd., which it said was a sister concern of Jindal Drilling, was liable to compensate ONGC in other arbitration proceedings.

 

ONGC argued that it had secured arbitral awards of INR 630 million and $1.8 million in 2013 from Discovery Enterprises and therefore, the said amount due must be adjusted against the amount the petitioner is liable to pay Jindal Drilling. Since ONGC refused to pay the dues in respect of the contracts to Jindal Drilling, the case was referred to arbitration. Thereafter, the arbitral tribunal in 2013 asked ONGC to pay $14.7 million along with interest to Jindal Drilling. Challenging the arbitral tribunal's award, ONGC moved the single judge of the high court, which held in favour of Jindal Drilling. In July this year, the division bench of the high court upheld the 2013 arbitration award.

 

"We accordingly proceed to dismiss the appeals by upholding the impugned judgment and order dated Apr. 28, 2015 passed by the single judge as well as the impugned award dated Oct. 9, 2013 passed by the Arbitral Tribunal," said the bench of Chief Justice Alok Aradhe and Justice Sandeep V. Marne of the Bombay High Court in July.  Challenging the high court's division bench order, ONGC moved the Supreme Court, which issued a notice to Jindal Drilling in the case. While the litigation was going on, the Supreme Court had in 2020 asked Jindal Drilling to submit bank guarantees for withdrawal of award money deposited by the state-owned oil explorer with the court. Tuesday, the apex court said the bank guarantees by Jindal Drilling can be renewed and listed the case for hearing on Jan. 19, 2026.

 

At 1351 IST, shares of ONGC were down 0.4% at INR 243.77 on the National Stock Exchange and those of Jindal Drilling were down 0.5% at INR 547.20.  End

 

US$1 = INR 89.84

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Ashish Shirke

 

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