Thursday, April 23, 2026
Latest:
ArbitrationDecember 2023High CourtLatestLegal

Bombay HC Upholds Arbitral Award against HPCL – Termination of Contract Declared Illegal

legaldeli

Judgment dated 19.12.2025 of the High Court of Bombay in Writ Petition No.559 of 2024 of Hindustan Petroleum Corporation Ltd   Vs.  Aegis Logistics Pvt Ltd

On 25.11.2014, the petitioner had given contract vide Operating and Services Agreement dated 5.5.2015, for operation, management and maintenance of Guntakal Depot spread over 12.6 acres of land with several tankers for storage of petroleum products.

 

On 3.3.2017, the petitioner terminated the contract and demanded Rs.1,72,55,998/-.

 

The main reason for the termination that the respondent had given stop work notice dated 26.9.2016 to operate railway siding.

The Arbitral award dated 3.3.2017 granting claim of the Respondent for Rs.1,93,79,734/- towards the works done, damages of Rs.2,31,78,733/- for loss of profits  and Rs.13,05,135/- for wrongful invocation of the Bank guarantee, all with interest and arbitration cost of Rs.1.60 crores.   All the counter claims of the petitioner were rejected.

HELD that The operation of Guntakal Depot commenced on 22 February 2015 and the stop work notice was issued by the Respondent on 26 September 2016. Ordinarily, no prudent business entity, who has earned a contract with State Oil Company would voluntarily surrender the same or seek excuses for walking out of the contract within 1 and 1/2 years. In the present case, Respondent No.1 got alarmed by the scathing report of OISD which directed ‘partial/full shut down of the siding’.

You May Also Like

Bombay HC Ruling – Committee of Housing Society cannot Function below Statutory Strength.

legaldeli

Insurance – Repudiation of claim for damage to the Mercedes Car

legaldeli

MSMED Act – Companies to file return to MCA for non-payment of MSME dues

legaldeli

Leave a Reply

Your email address will not be published. Required fields are marked *

I HAVE READ THE DISCLAIMER AND AGREE TO IT.

User Acknowledgement

By proceeding further and clicking on the "AGREE" button herein below, I acknowledge that I of my own accord wish to know more about LegalDeli for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from LegalDeli or any of its members to create an Attorney-Client relationship through this knowledge site. I further acknowledge having read and understood the Disclaimer below.

Disclaimer
About: This knowledge-site (www.LegalDeli.in) is owned and operated by LegalDeli (“NDA”), and is a resource for your informational and educational purposes only.

No Warranty: NDA does not warrant that any content or information contained on this knowledge-site is accurate, correct, complete or up-to-date, and hereby disclaims any and all liability to any person for any actual or threatened loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or otherwise. NDA assumes no liability for the interpretation and/or use of the content and/or information contained on this knowledge-site, nor does it offer any warranty of any kind, either expressed or implied in relation to such content or information.

Third-Party Links: NDA does not intend that links / URLs contained on this knowledge-site re-directing users to third party websites be considered as referrals to, endorsements of, or affiliations with any such third party website operators. NDA is not responsible for, and makes no representations or warranties, express or implied, about the content or information contained on such third party websites to which links may be provided on this knowledge-site.

No Legal Advice: By clicking ‘I agree’ and proceeding further, you acknowledge, represent and undertake that you on your own accord wish to know more about NDA, its capabilities and research content and information contained on the knowledge-site, for your own knowledge and personal use. The content and information contained on this knowledge-site should not be construed as nor relied upon as legal advice. You as a reader or recipient of content or information contained in this knowledge-site should not act, nor refrain from acting, based upon any or all of such content or information, but should always seek the advice of competent legal counsel licensed to practice the relevant law in the appropriate jurisdiction.

No Attorney-Client Relationship: This knowledge-site is not intended to be and you should not consider the content or information contained therein to be an advertisement, solicitation, inducement or invitation for an Attorney-Client relationship. Transmission, receipt or use of this knowledge-site, including content and information contained therein, does not constitute nor create an Attorney-Client relationship between NDA and you.

I Agree