The Supreme Court on Wednesday berated the Oil and Natural Gas Corporation (ONGC) in strong words for haggling over fees with retired judges who have been arbitrating the public sector undertaking’s (PSU) dispute with Ms/ Schlumberger Asia Services Ltd. [Ms/ Schlumberger Asia Services Ltd v. Oil and Natural Gas Corporation]
A Bench headed by Chief Justice of India NV Ramana said that while PSUs with lot of money like the ONGC, keep filing frivolous petitions, they raise issue over payment of arbitrator’s fees, reports Bar and Bench.
“Public sector undertakings have so much money, they keep filing frivolous proceedings. Then you have issue in paying the arbitrators,” the Court remarked while cautioning the PSU of contempt of court action.
The matter was listed pursuant to a letter written to the Court by one of the arbitrators, retired Bombay High Court judge Justice SC Dharmadhikari.
The Supreme Court had on January 4, 2021 appointed former Chief Justice of Calcutta High Court Justice Jai Narayan Patel and former Chief Justice of Punjab and Haryana High Court, Justice Shivax Jal Vazifdar to the panel of arbitrators. They were then asked to select the third arbitrator.
Justice Vazifdar had expressed his inability to take up the assignment and Justice Dharmadhikari replaced him.
Justices Dharmadhikari and Patel then appointed Justice Anil Dave as the presiding arbitrator.
However, Justice Dave recused when fee dispute arise with ONGC. Subsequently, Justice Patel also recused due to the same reason prompting Justice Dharmadhikari to write to the top court.
When the matter was listed today, the CJI took strong exception to the ONGC’s conduct.
“Look at the arrogance of ONGC. I think they have lot of money so they think they can do anything. How can this be permitted,” the CJI demanded.
The Court said that it was extremely sorry to read the concerns raised by the retired judge in his letter.
“What do you think of yourselves? We will issue contempt notice, you are insulting the judges. Why? because you have a lot of money,” the CJI said.
The Court then sought the presence of Attorney General KK Venugopal.
When the AG appeared before the Bench, he was directed to speak to ONGC and ensure that the issue is resolved.
“Mr. AG, this is an arbitration case and court appointed 3 judges. Please speak to ONGC. It is extremely embarrassing,” the Court said.
The AG assured the Court that he will speak to the PSU.
“I will My lord. I will see they agree to the fee. Fee must be left to arbitrators after all,” the AG said.
The Court posted the case for further hearing after one week.
