AIROnline 2022 SC 604 ::2022 (8) SCC 42 ::2022 (3) Arbi LR 45 ::AIR 2022 SC (Civil) 1549

Supreme Court Of India

Hon'ble Judge(s): Dhananjaya Y. Chandrachud, Surya Kant, Vikram Nath , JJJ

(A) Arbitration and Conciliation Act (26 of 1996) , S.37(2), S.16, S.7— Arbitral award - Setting aside of - Dispute arising out of contract for operating floating, production, storage and offloading vessel - Attempts by appellant, seeking joinder of Principal Company of Contractor to arbitral proceedings, invoking 'group of companies' doctrine - Rejected without discovery and inspection of material proving necessity for such joinder - Fundamental failure of Arbitral Tribunal to address plea raised by appellant, for attracting 'group of companies' doctrine - Vitiates interim award. Out of contract for operating floating, production, storage and offloading vessel, ONGC-appellant paid the customs duty on the understanding that the vessel would be re-exported after work was complete under duty drawback and such formalities would be completed by Contractor Company. The vessel left Indian territorial waters and did not return. According to appellant, contractor company failed to complete the formalities for duty drawback and did not compensate it for customs duty and other expenses incurred. By invoking arbitration clause, Appellant set up the case that Contractor Company and its Principal Company belonged to same Group of Companies, hence constitute a single economic entity. Therefore the corporate veil should be lifted to compel the non-signatory,....