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Judgment
The Court proceedings have been conducted through Video-conference.
Heard Mr. G. N. Sahewalla, learned senior counsel for the petitioner. Also heard Mr. S. N. Sarma, learned Senior Standing Counsel, OIL
appearing for the respondents.
In this petition, the petitioner has challenged the notice of termination ofContract dated 12.05.2021.
The petitioner was awarded the contract in his favour for laying of pipeline across River Mahananda III along with crude oil line vide Work Order
No. 8120972 in respect of Contract No.6111837.
It has been submitted that the petitioner was not allowed to execute the work by not providing the right of way and as such, without any fault of the
petitioner, the Contract was terminated vide impugned order dated 12.05.2021.
On the other hand, Mr. Sarma, learned Senior Standing Counsel, OIL has submitted that there is an arbitration clause available in the agreement
and as such, the petitioner, if aggrieved by the said termination, can invoke the said arbitration clause and settle the dispute through arbitration and not
by filing this writ petition.
Mr. Sahewalla, learned senior counsel for the petitioner submits that, in that event, the petitioner will invoke the arbitration clause, however, an
interim order may be passed directing the authorities not to resort to any coercive action against the petitioner as regards invoking of the bank
guarantee.
As regards this, Mr. Sarma, learned Senior Standing Counsel, OIL has submitted that since the performance bank guarantee has been already
invoked, no order will be required as sought for by the petitioner.
Mr. Sahewella, learned senior counsel, however, submits that as per his instruction, the said performance bank guarantee has not been invoked
against the petitioner and accordingly, he prays that till appointment of the arbitrator, the said performance bank guarantee may not be invoked. He
also submits that the petitioner will invoke arbitration clause at the earliest possible.
It is, accordingly, directed that the authorities may not invoke the performance bank guarantee, if not already invoked, for a period of two months
from today or till appointment of the arbitrator whichever is earlier.
With the above observation and direction, the present petition stands disposed of.