The Supreme Court for resolving dispute relating to Essar Steel India Limited (ESIL) has permitted the arbitration proceedings by Arcelor Mittal Nippon Steel India Limited (AMNSIL) and Indian Oil Corporation Ltd (IOCL).
The Apex Court stated that all rights and contentions of the parties are kept open as both the parties shall have the liberty to argue on the aspect of whether the dispute was arbitrable or not.
IOCL was represented by solicitor general Tushar Mehta whereas senior lawyers Harish Salve and Abhishek Manu Singhvi appeared for AMNSIL.
The Supreme Court on February 5 had reserved its judgment in the appeal filed by IOCL against the October 2023 judgment of the Delhi high court.
IOCL in its plea had requested to appoint an arbitrator to adjudicate a dispute that started due from a gas supply agreement (GSA) that it entered with ESIL in 2009 were dismissed by the HighCourt.
The ESIL had terminated the contract but IOCL objected to the termination because it had not broken any of the agreement terms and that the termination notice must be regarded as ineffectual.
IOCL’s demand notice for termination after ESIL did not respond to of the GSA, the latter invoked arbitration but to no avail.