Offshore Infrastructures Ltd v. Bharat Petroleum Corp Ltd; 2025 INSC 1196 - Arbitration - Appointment of Arbitrator
Arbitration and Conciliation Act 1996 - Section 11(6), 12(5)- Merely because the procedure to appoint an arbitrator provided in the clause has become inoperative due to subsequent changes in statutory provisions, would not mean that the core of the contract referring the dispute for adjudication to arbitrator would be rendered nugatory. The amendment in the statute has been enacted with the legislative intent to enforce neutrality of the arbitrator and bring impartiality in arbitration proceedings by virtue of Section 12(5) of the 1996 Act. It cannot be justified to literally interpret the clause in the contract in a manner or at the cost of the entire arbitration mechanism itself being abandoned. The arbitration agreement must be interpreted in a purposive manner, but not literally so as to enable the parties to pursue the intended dispute redressal mechanism of contract. (Para 20)
Arbitration and Conciliation Act 1996 - In Re: Cognizance for Extension of Limitation - The benefit of the period from 15.03.2020 to 28.02.2022 must be given to the Appellant and this period need to be excluded while counting the period of limitation for filing application for appointment of arbitrator. (Para 24)
Case Info
Case Name: Offshore Infrastructures Limited v. Bharat Petroleum Corporation Limited.
- Neutral Citation: 2025 INSC 1196.
- Coram: Dipankar Datta, J.; Augustine George Masih, J.
- Judgment Date: October 07, 2025.
Caselaws and Citations
- Perkins Eastman Architects DPC v. HSCC (India) Ltd, (2020) 20 SCC 760.
- TRF Ltd v. Energo Engineering Projects Ltd, (2017) 8 SCC 377.
- Voestalpine Schienen GmbH v. DMRC, (2017) 4 SCC 665.
- Geo Miller & Co. Pvt. Ltd. v. Chairman, Rajasthan Vidyut Utpadan Nigam Ltd, (2020) 14 SCC 643.
- Grasim Industries Ltd v. State of Kerala, (2018) 14 SCC 265; (2018) 4 SCC (Civ) 612.
- Inder Singh Rekhi v. DDA, (1988) 2 SCC 338.
- Union of India v. Momin Construction Co., (1997) 9 SCC 97.
- Arif Azim Company Ltd v. Aptech Ltd, (2024) 5 SCC 313.
- In Re: Cognizance for Extension of Limitation, (2022) 3 SCC 117.
Statutes / Laws Referred
- Arbitration and Conciliation Act, 1996: Sections 11(6), 11(8) (pre‑amendment reference), 12(5) and Seventh Schedule.
- Limitation Act, 1963: Sections 2(j), 3, 19, and Article 137.
- Contract Act, 1872: Section 28.
- COVID limitation orders: Supreme Court order dated 10.01.2022 excluding 15.03.2020–28.02.2022 from computation; references to Sections 23(4) and 29‑A of the Arbitration Act; Section 12‑A of the Commercial Courts Act, 2015; provisos (b) and (c) of Section 138 of the Negotiable Instruments Act, 1881.
