# In the matter of Hindustan Petroleum Corporation Limited vs. Om Construction & Ors.

> HC judgment dated 2023-10-17. Citation: TCN-2023-HC-00027. Hindustan Petroleum Corporation Limited (HPCL) filed a Writ Petition challenging an order passed by…

- **Court:** HC
- **Order date:** 17 Oct 2023
- **Citation:** TCN-2023-HC-00027
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/hindustan-petroleum-corporation-limited-vs-om-construction-ors-92cdb6e2

## Summary

### Background

Hindustan Petroleum Corporation Limited (HPCL) filed a Writ Petition challenging an order passed by an Arbitrator under Section 16 of the Arbitration and Conciliation Act, 1996, and an order passed by a Judge of the High Court under Section 11 of the Arbitration Act. The dispute arose from a tender floated by HPCL for civil and structural jobs at its 2G Ethanol Bio-Refinery in Bhatinda. Respondent No.2, Nice Projects Limited, was admitted into Corporate Insolvency Resolution Process (CIRP) before the tender was floated, a fact allegedly concealed by the respondents. Respondent Nos. 1 and 2 formed a Joint Venture and submitted a bid, which was accepted by HPCL. Subsequently, HPCL terminated the purchase order due to delays and breaches of contract. The Joint Venture

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## Facts

Hindustan Petroleum Corporation Limited (HPCL) floated a tender for civil and structural jobs at its 2G Ethanol Bio-Refinery in Bhatinda. Nice Projects Limited (Respondent No.2) was undergoing Corporate Insolvency Resolution Process (CIRP) at the time the tender was floated, a fact not disclosed in the tender documents. Om Construction (Respondent No.1) and Nice Projects Limited formed a Joint Venture to bid for the tender. The Joint Venture submitted a bid, which was accepted by HPCL, and a purchase order was issued. HPCL later terminated the purchase order due to delays and breaches of contract. The Joint Venture invoked the arbitration clause in the contract. Respondent No.1 filed an application under Section 11 of the Arbitration and Conciliation Act, 1996, for the

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## Issues and analysis

### Issue 1: Whether the Writ Petition challenging the order passed under Section 11 of the Arbitration Act is …

**Ratio:** An order passed under Section 11 of the Arbitration Act can only be challenged by way of

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**Reasoning:** The court relied on the Supreme Court's judgment in S.B.P. and Co. Vs. Patel Engineering

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**Interpretation:** The court interpreted Section 11 of the Arbitration Act and Article 136 of the

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**Application:** The court applied the ratio to the facts of the case and held that the Writ

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## Parties

- **Judges:** Sunil B.…; Firdosh P.…
- **Appellants:** Hindustan…
- **Respondents:** Nice Projects…; Om Constr…

## Timeline

- **2004-04-27 — Incorporation of…**: Respondent No.2, Nice Projects…
- **2021-02-12 — NCLT admits Respondent…**: The National Company Law Tribunal (NCLT) admitted Respondent No.2 into the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9(5) — Application for initiation of corporate…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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