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2026 DAILYLAW 39668 (KAR)

INDIAN OIL CORPORATION LIMITED v. AUTO GAS ENERGY LIMITED

CMP/536/2024 · 2026-09-07

H T Narendra Prasad

body2026

Judgment text

Extracted from the PDF above. The PDF is authoritative.

- 1 - HC-KAR CNR: KAHC010663152024 NC: 2026:KHC:48232 CMP No. 525 of 2024 C/W CMP No. 524 of 2024 CMP No. 536 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF SEPTEMBER, 2026 BEFORE THE HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD CIVIL MISC. PETITION NO. 525 OF 2024 C/W CIVIL MISC. PETITION NO. 524 OF 2024 CIVIL MISC. PETITION NO. 536 OF 2024 IN CMP No. 525/2024 BETWEEN: INDIAN OIL CORPORATION LIMITED (A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956) HAVING ITS REGISTERED OFFICE AT NO.P KALINGA RAO ROAD MISSION ROAD, BENGLAURU-560027. REP. BY ITS CHIEF GENERAL MANAGER (LPG). …PETITIONER (BY SMT. LEKHA, G.D, ADVOCATE FOR SMT. KAVITHA DAMODARAN., ADVOCATE) AND: AUTO GAS ENERGY LIMITED (A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956) HAVING ITS OFFICE AT 39/4141 M G ROAD, RAVIPURAM KOCHI-682016 REP. BY ITS MANAGER. Digitally signed by DHANALAKSHMI MURTHY Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010663152024 NC: 2026:KHC:48232 CMP No. 525 of 2024 C/W CMP No. 524 of 2024 CMP No. 536 of 2024 …RESPONDENT (RESPONDENT SERVED V/O DATED: 27.08.2026 SERVICE HELD SUFFICIENT) THIS CIVIL MISCELLANEOUS PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING THAT THIS HON’BLE COURT MAY BE PLEASED TO CONSTITUTE AN ARBITRAL TRIBUNAL BY APPOINTMENT OF A SUITABLE PERSON AS THE SOLE ARBITRATOR FOR THE ADJUDICATION OF THE PETITIONERS CLAIM IN ACCORDANCE WITH THE SAID CLAUSE 9.0.0.0. OF THE WORK ORDER BEARING NO.LPG/STRATEGIES/ AUTO/LPG/ PT/12- 13/AGEIL/(02/14) DATED:10.12.2012 (ANNEXURE-C) AND ETC. IN CMP NO. 524/2024 BETWEEN: INDIAN OIL CORPORATION LIMITED (A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956) HAVING ITS REGISTERED OFFICE AT NO. P KALINGA RAO ROAD, MISSION ROAD BENGALURU -560027 REP. BY ITS CHIEF GENERAL MANAGER (LPG) R. GANAPATHI SUBRAMANIAN. ...PETITIONER (BY SMT. LEKHA G.D., ADVOCATE FOR SRI. VACHAN H U., ADVOCATE) - 3 - HC-KAR CNR: KAHC010663152024 NC: 2026:KHC:48232 CMP No. 525 of 2024 C/W CMP No. 524 of 2024 CMP No. 536 of 2024 AND: AUTO GAS ENERGY LIMITED (A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956) HAVING ITS OFFICE AT 39/4141, MG ROAD RAVIPURAM, KOCHI-682 016 REP. BY ITS MANAGER ...RESPONDENT (SERVICE OF NOTICE TO RESPONDENT IS HELD SUFFICENT V/O DATED: 27.8.2026) THIS CIVIL MISCELLANEOUS PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO CONSTITUTE AN ARBITRAL TRIBUNAL BY APPOINTMENT OF A SUITABLE PERSON AS THE SOLE ARBITRATOR FOR THE ADJUDICATION OF THE PETITIONERS CLAIM IN ACCORDANCE WITH THE SAID CLAUSE 9.0.0.0. OF THE WORK ORDER BEARING NO.LPG/ STRATEGIES/ AUTO LPG/ PT-11/ 12-13/AGEIL/ (03/14) DATED 10.12.2012 (ANNEXURE-C) AND ETC. IN CMP NO. 536/2024 BETWEEN: INDIAN OIL CORPORATION LIMITED (A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956) HAVING ITS REGISTERED OFFICE AT NO. P KALINGA RAO ROAD MISSION ROAD, - 4 - HC-KAR CNR: KAHC010663152024 NC: 2026:KHC:48232 CMP No. 525 of 2024 C/W CMP No. 524 of 2024 CMP No. 536 of 2024 BENGALURU - 560 027. REP. BY ITS CHIEF GENERAL MANAGER (LPG) R. GANAPATHI SUBRAMANIAM. ...PETITIONER (BY SMT. LEKHA G.D., ADVOCATE FOR SMT. KAVITHA DAMODARAN., ADVOCATE) AND: AUTO GAS ENERGY LIMITED (A COMAPNY INCORPORATED UNDER THE COMAPNIES ACT, 1956) HAVING ITS OFFICE AT 39/4141 MG ROAD, RAVIPURAM KOCHI-682 016. REP. BY ITS AUTHROISED REPRESENTATIVE. ...RESPONDENT (SERVICE OF NOTICE TO RESPONDENT IS HELD SUFFICIENT V/O DATED: 27.08.2026) THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11 (6) OF THE ARBITRATION AND CONCILIATION ACT 1996 PRAYING TO CONSTITUTE AN ARBITRAL TRIBUNAL BY APPOINTMENT OF A SUITABLE PERSON AS THE SOLE ARBITRATOR FOR THE ADJUDICATION OF THE PETITIONERS CLAIM IN ACCORDANCE WITH THE SAID CLAUSE 9.0.0.0 OF THE WORK ORDER LPG/STRATEGIES/AUTO/LPG/PT-11/12- 13/AGEIL/ (01/14) DATED 10.12.2012 (ANNEXURE-C) AND ETC. - 5 - HC-KAR CNR: KAHC010663152024 NC: 2026:KHC:48232 CMP No. 525 of 2024 C/W CMP No. 524 of 2024 CMP No. 536 of 2024 THESE PETITIONS, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD ORAL ORDER 1. These petitions are filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short “the Act”), seeking appointment of a Sole Arbitrator for adjudication of the dispute between the petitioner and the respondent in relation to Clause 9 of the Work orders dated 10.12.2012 at Annexure-C of respective petitions. 2. It is submitted that the petitioner issued a public tender calling in bids for design, supply, erection, testing, commissioning and maintenance of Auto LPG dispensing stations and respondent was the successful bidder. In light of acceptance of the bid, Letters of Intent were issued to the respondent and thereafter Work Orders dated 10.12.2012 were issued by the petitioner to the respondent. Subsequently, site was handed over to the respondent. As per the Work Orders, respondent was - 6 - HC-KAR CNR: KAHC010663152024 NC: 2026:KHC:48232 CMP No. 525 of 2024 C/W CMP No. 524 of 2024 CMP No. 536 of 2024 required to complete and finish work on or before 14.02.2016. It is submitted that there was delay on the part of the respondent. Hence, Show-cause-notices were issued to the respondent. Subsequently, petitioner terminated the contract in terms of the General Conditions of the Contract. It is submitted that subsequently fresh tender was required to be floated and with respect to the loss suffered, notices were issued to the respondent to the address of the respondent available on the Ministry of Corporate Affairs (MCA) website. The notices came to be unserved and returned with an endorsement as ‘unclaimed’. It is submitted that notices were sent to the correct address and hence, service of notice to the respondent shall be considered as completed. There was no response from the respondent relating to the initiation of the arbitration proceedings. Therefore, the petitioner herein filed CMP before this Court in CMP Nos.130- 132/2020. This Court by orders dated 08.01.2020, 01.12.2020 and 29.01.2021 has appointed the Sole - 7 - HC-KAR CNR: KAHC010663152024 NC: 2026:KHC:48232 CMP No. 525 of 2024 C/W CMP No. 524 of 2024 CMP No. 536 of 2024 Arbitrator. The Sole Arbitrator by Award dated 25.07.2022 has dismissed the arbitral claim of the petitioner. Being aggrieved by the same, petitioner herein filed Commercial A.P.Nos.124-126/2022. By Order dated 28.02.2023, the Commercial Court set aside the Award dated 25.07.2022 passed by the Sole Arbitrator. In order to re-initiate the arbitration proceedings by invoking arbitration clause provided under Clause 9.0.0.0 of the General Conditions of Contract pertaining to the Work Orders dated 10.12.2012, the present petitions have been filed. 3. Notice has been issued to the respondent by this Court and it was served on 25.02.2025. Despite service of notice, none appears on behalf of the respondent. The notice issued to the respondent for the second time also returned with an endorsement as ‘unclaimed’. This Court, by order 27.08.2026 has held service of notice to the respondent as sufficient. The order dated 27.08.2026 is extracted below: - 8 - HC-KAR CNR: KAHC010663152024 NC: 2026:KHC:48232 CMP No. 525 of 2024 C/W CMP No. 524 of 2024 CMP No. 536 of 2024 “The question for consideration at this stage is: whether this Court must call upon the learned counsel for the petitioner to take fresh steps for issuance of notice to the respondent. The office has placed on record the following details. I. The notice issued to the common respondent initially is served on 25.02.2025. II. When the second time notice is issued, it is returned as "unclaimed" in terms of the Endorsement by the personnel of the Postal Department. This Court is of the view that if the respondent has been served once and has not claimed the notice when sent for the second time, the service of notice must be held sufficient, and it is held accordingly. The office is directed to re-list these petitions on 03.09.2026.” 4. In view of the above, and having regard to the existence of the arbitration clause in relation to the Work Orders, this Court is of the opinion that a Sole Arbitrator is required to be appointed for adjudication of the disputes between the parties. Accordingly, the following: - 9 - HC-KAR CNR: KAHC010663152024 NC: 2026:KHC:48232 CMP No. 525 of 2024 C/W CMP No. 524 of 2024 CMP No. 536 of 2024 ORDER a) Petitions are allowed. b) Mr.S.R.Somasekhara, Retired District Judge, is appointed as the Sole Arbitrator in the present case to arbitrate the dispute between the parties at the Arbitration and Conciliation Centre (Domestic & International), Bengaluru, as per the Rules governing the said Arbitration Centre. c) All the claims and contentions of the parties are kept open. d) Registry is directed to communicate this order via E-mail to the Arbitration and Conciliation Centre (Domestic & International), Khanija Bhavan, Bengaluru and also to the learned Sole Arbitrator. e) Registry is directed to return all the original documents produced by any of the parties after obtaining Photostat copies of the same. Sd/- (H.T. NARENDRA PRASAD) JUDGE DM, List No.: 1 Sl No.: 7