M/S. ESSAR OIL LTD. Vs. HINDUSTAN SHIPYARD LTD.
LAWS(SC)-2015-7-75
SUPREME COURT OF INDIA (FROM: ANDHRA PRADESH)
Decided on July 02,2015

M/S. Essar Oil Ltd. Appellant
VERSUS
HINDUSTAN SHIPYARD LTD. Respondents

JUDGEMENT

- (1.) Being aggrieved by a common judgment dated 29th September, 2004, delivered in Appeals Against Order Nos.255 and 624 of 2003 by the High Court of Andhra Pradesh at Hyderabad, these appeals have been filed by M/s Essar Oil Ltd., who had been given a sub-contract by the first respondent, Hindustan Shipyard Ltd., in respect of a contract which was given to it by the Oil and Natural Gas Commission.
(2.) The facts giving rise to the present litigation, in a nutshell, are as under:- The Oil and Natural Gas Commission (hereinafter referred to as 'the ONGC') had given a contract to Hindustan Shipyard Ltd. to carry out work of fabrication, skidding, sea fastening, transportation etc. at various stations located in the coastal areas of India. It is pertinent to note that the contractor, Hindustan Shipyard Ltd., who is respondent no.1 in both the appeals, had been permitted to avail services of any other person for doing the aforestated work entrusted to it. In other words, it was open to respondent no.1 to engage a sub- contractor for getting the work done. Other respondents in these appeals are the arbitrators, who are formal parties.
(3.) In pursuance of the aforestated understanding arrived at and the contract entered into between the ONGC and Hindustan Shipyard Ltd. (who has been referred to as 'the respondent' hereinafter), the respondent had entered into a contract with M/s Essar Oil Ltd., who is the appellant in both these appeals. Thus, the appellant was a sub- contractor in respect of the contract which the respondent had to fulfill for the ONGC.;


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