CJI grills ONGC for its refusal to accept Arbitrator’s fee, stalling proceedings

The Chief Justice of India N.V. Ramana (CJI) grilled Oil and Natural Gas Corporation (ONGC) as an arbitral tribunal consisting of Retired Justice Dharmadhikari recused from the proceedings for the PSU refused to agree on the fee schedule for arbitrators.

When the matter was called for hearing, CJI informed counsel appearing for ONGC that he was going to issue suo motu contempt and that this attitude was unacceptable, however counsel was asked by the bench, also consisting of Justices Bopanna and Hima Kohli to have Attorney General for India KK Venugopal to appear in the matter.

When the AG appeared, CJI said,

“We called you with reference to an arbitration case pertaining to ONGC. We had appointed 3 arbitrators in this matter. We want to bring to your notice, the arrogance of ONGC.”
The CJI then read out the letter addressed to the court by Justice Dharmadikari which outlines the reasons for him recusing from the matter and demonstrating how ONGC had behaved. The brief contents of the letter as read as follows, “Bearing in mind the the reluctance of ONGC in agreeing with the fee schedule, I feel embarrassed to continue as the presiding arbitrator in this matter.”

The CJI then said,

“What is this attitude? I will issue contempt in this matter!”
He further informed the AG that the court has been noticing the attitude of ONGC and they have no respect for the judges and that ONGC has been filing frivolous cases, often behave very arrogantly.

With this attitude, no judge will act as their arbitrator given their attitude, CJI added.

The AG assured the bench that he will talk to ONGC and sort the issue out as early as possible. The bench at this point adjourned the matter by one week for the AG to get back after discussing with ONGC.

The Supreme Court had in January appointed Justices Justice Jai Narayan Patel, former Chief Justice of Calcutta High Court and Hon’ble Mr. Justice Shivax Jal Vazifdar, former Chief Justice of Punjab and Haryana High Court to the panel of Arbitrators and had directed them to appoint a 3rd arbitrator.

Case title: M/s Schlumberger Asia Pvt Ltd Vs ONGC