Nishka Srinivas Veluvali –
Published On: December 1, 2021 at 20:50 IST
The Supreme Court of India on Wednesday, 01 December 2021, heavily condemned Oil and Natural Gas Corporation (ONGC) for refraining from paying the Arbitrators as ordered by the Tribunal, which made three former High Court Judges to withdraw themselves as Arbitrators.
The Bench led by Chief Justice of India NV Ramana asserted that being public sector, ONGC has lots of money to file “frivolous proceedings” and not to pay the Arbitrators. “What is this attitude of ONGC? I’m issuing a notice. I think I’ve to issue a contempt notice also. The other day such a frivolous matter was filed. Every day we are watching. We are watching this ONGC. Public sector undertakings, because you have a lot of money, you keep filing frivolous proceedings. And you don’t want to pay fees to arbitrators.”
The Court asked the Advocate General KK Venugopal to look into this matter and adjourned it for one week.
The observations were made after a letter written by one of the former Judges appointed as an Arbitrator asked for recusal.
The Bench when hearing this matter today, heavily came down on ONGC and stated, “What do you think of yourselves? I am issuing suo moto contempt. You’re insulting the judges? Because you have a lot of money? Call the Attorney General to appear.”
Attorney General appeared before the Court virtually and the Court informed that they had called upon him to make him aware of the arrogance and attitude of ONGC as he is the Attorney General of India.
The Bench also consisted Justice AS Bopanna and Justice Hima Kohli, who read out the letter to AG Venugopal written by former Judge of Bombay High Court S.C Dharmadhikari seeking withdrawal as Arbitrator.
The Letter shed the light on point where Tribunal affixed a routine for advancing with the structure of fees upon getting the Top Court’s Order.
The Letter claims that the Advocate representing ONGC informed them to look for time to let the Tribunal know if ONGC is willing to accept the fee structure and seeked them to distribute the burden equally with the Claimant.
Later on, the Advocate informed the Tribunal that ONGC is adamant to the point that the fees will be paid according to their contract.
Justice Dhamadhikari in his letter mentioned that two arbitrators already sought for recusal, after which he found it very embarrassing to continue as a part of Tribunal and he alone cannot afford to pay the fee.