2026ArbitrationHigh CourtJune 2026LegalMediation

Patent Illegality Not a Ground – International Commercial Arbitration

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

Scope of Interference -Award in International Commercial Arbitration

Patent Illegality & Award in International Commercial Arbitration

The ONGC awarded the contract for redevelopment of its Mumbai High South Field to the respondent.

After completion of the contract work, the respondent raised six claims for extra work.  However, ONGC allowed two claims and rejected four claims as per the details given in para 8 of the judgment.

On 4.5.2024, three-member Arbitral Tribunal had partly allowed claims Nos.1 & 2, rejected one claim and fully allowed claim Nos.3 to 5.

The claim for pre-award / pendente lite interest was rejected.  However, the post-award interest LIBOR rate was granted.  The costs of Rs.1,87,82,866/- was also awarded with 9% interest.

Section 34(2A) provides that an arbitral award arising out of arbitration other than international commercial arbitration may also be set aside if it is vitiated by patent illegality on the face of the record.

 The conspectus of the above discussion is that the ground of patent illegality is not available for challenging the impugned award which is made in an international commercial arbitration held in India. Also, perversity, if any, in findings recorded by the Arbitral Tribunal would constitute the vice of patent illegality and would not come in the ambit of the expression ‘in conflict with public policy of India.

Judgment dated 9.6.2026 of the High Court of Bombay in Commercial Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

Arbitration Petition No.720 of 2024 of Oil and Natural Gas Corporation Limited  Vs.  Sapura Fabrication SDN BHD now known as VTEB Fabrication SDN BHD

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