The Hindustan Shipyard Limited (HSL) is trying to settle the financial dispute with Essar Oils and ONGC through arbitration. After the district court attached the assets of the HSL favouring Essar Oils Limited recently, the company approached the High Court and obtained an eight-week stay order. The company has been trying to settle the issue through an arbitrator at an earliest.
While explaining about the recent attachment of the company’s properties, CMD of HSL LV Sarat Babu said that in 1998-2000, the ONGC had gave an order to construct off-shore platform and rig to the HSL and in turn, the HSL had given some work to Essar Oils Limited. During the agreement, the ONGC agreed to pay the amount directly to Essar Oil after the HSL certifying the work.
However, due to delay in execution of the work, the ONGC not paid the money to Essar Oils and Essar Oils Company went to the court and the past 17 years the issue was in the court. However, recently the district court attached the assets of HSL. At present the High Court gave stay order on the district court’s assets attachment and the company has been trying to settle the issue at an earliest, the CMD of HSL informed.
“Though the HSL had given the sub-contract work to Essar Oils Limited, the ONGC had accepted to pay amount directly to the company after the HSL certification. But Essar Oils filed cases against HSL,” CMD Sarat Babu said. Read more
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