In a recent decision on January 19, 2026, the Bombay High Court, led by Judge Sandeep V. Marne, canceled an arbitration decision involving Hindustan Petroleum Corporation Limited (HPCL) and Om Construction Nice Projects Limited JV. The case was about a contract disagreement concerning a big project at the Ethanol Bio-Refinery in Bathinda.
Contract Award and Dispute: HPCL gave a contract to the joint venture (JV) of Om Construction and Nice Projects Ltd. on July 15, 2021, for building work at Bathinda. Problems started when the work wasn't finished on time, leading HPCL to end the contract on August 26, 2022.
Arbitration Process: The JV asked for arbitration on September 7, 2022, after HPCL didn't choose an arbitrator. A group of arbitrators was formed on December 12, 2022.
Fraud Claims: HPCL claimed that Nice Projects Ltd. didn't reveal ongoing bankruptcy proceedings that started on February 12, 2021, which affected the contract and the arbitration agreement.
Arbitration Decision: The arbitrators decided to give the JV Rs. 19,92,79,827, including claims for breaking the contract and other payments, while accepting a counterclaim for HPCL of Rs. 10,00,226.
Mistakes in Procedure: Judge Marne pointed out mistakes made by the arbitrators, like treating emails as official requests and not allowing HPCL to change its defense to include fraud claims.
Not Enough Evidence: The arbitrators' decision was based on not enough evidence, as no witnesses supported the claims. The court found this method flawed and lacking good judgment.
Claims of Unfairness: Although unfairness was claimed, the court focused more on procedural mistakes and the lack of evidence as reasons for canceling the decision.
The court decided to cancel the arbitration decision because of mistakes in how the arbitration was handled and not enough evidence. This means both parties can start new arbitration proceedings to fully present their cases, especially about the alleged fraud and the validity of the contract.
