Khaitan advises GAIL in supply dispute

Khaitan & Co successfully advised and represented GAIL (India) Limited (“GAIL”) before the Hon’ble Supreme Court in an arbitration arising out of a 20-year-old supply agreement between GAIL and HRD Corporation (Marcus Oil and Chemical Division-a Houston, Texas based company) (“HRD”).

HRD had challenged the mandate of the nominee arbitrator of GAIL and the presiding arbitrator. After dismissal of the said challenge by the Tribunal, HRD approached the Delhi High Court in petitions under Section 14 and 15 of the Act. The High Court dismissed the petitions holding that a challenge to the appointment of the arbitrators on grounds other than the existence of relationships falling under the categories specified in the 7th Schedule of the Act, could not be entertained in the said proceedings.

The court held in favour of GAIL and laid down the principles of law relating to Sections 12, 13 and 14 read with the 5th and the 7th Schedule of the Act post amendment.

Vanita Bhargava (Partner) and Abhisaar Bairagi (Senior Associate) represented GAIL on the matter.