Decided on May 27,2013

Aban Offshore Limited Respondents


- (1.) This appeal, preferred under section 39 of The Arbitration Act, 1940, is directed against the order dated 19.12.2000 passed by Civil Judge (Sr. Div.) Dehradun in Miscellaneous Case No. 118 of 1997 (with Suit No. 538 of 1997) whereby said court has refused to set aside the award dated 31.05.1997 given by the Umpire, and the award has been made rule of the court with modification that in respect of claim no. 1 amount of Rs. 14,94,475/- awarded by the Umpire shall be calculated at the rate of 75%, and after calculation of the interest payable at the rate of 18% per annum till the date the award was given as directed by the Umpire, 6% per annum shall be paid during the pendency of the case before the trial court, and after the decision i.e. 19.12.2000, interest at the rate of 12% shall be paid on the awarded sum.
(2.) Heard learned counsel forthe parties, and perused the lower courtrecord.
(3.) Brief facts, of the case are that claimant (present respondent) M/s Hitech Drilling Service India Limited (for short Hitech) entered into an agreement with Oil and Natural Gas Commission (for short ONGC) on 01.05.1991, whereby the claimant/respondent agreed to deploy a Land Drilling Rig for the drilling of oil and gas well. As per the agreement drilling operations were subject to directions of ONGC. The necessary equipments and personnel were to be provided by the claimant/respondent. The drilling operations included coring, fishing, testing etc. M/s Hitech (claimant/ respondent) was obliged to provide and maintain at its cost the drilling unit, other equipments and materials. The depth of the well was to be specified by ONGC. In terms of Article 13.4 of the agreement if any hole was lost or damaged due to the negligence on the part of M/s Hitech it was the responsibility of said party to repair the damage and re-drill the hole at the same site or at the alternative site for which it would be paid only 50% of the full operating rate (i.e. 50% of Rs. 1,39,500/- per day). Under Article 18.1 ONGC was required to make payment to Hitech for the work done by it at the operating rates mentioned in Appendix-E to the agreement. Appendix D to the contract provided different rates applicable to different operations like "stand by time" or "non operating time" etc. In the case of fishing operations Article 18.4 (d) of the agreements provides that the payment for fishing shall be made at the rate of 75% of operating rate. The contract further provides that in case of movement of the drilling unit from one location to another, ONGC was obliged to pay necessary expenses for the same. At the end, Article 41 of the contract provided the Arbitration Clause.;

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