Bharat Petroleum Corporation Limited Vs SK. Ashphaque Hossain (Calcutta High Court)
Summary: The Calcutta High Court considered a petition filed by Bharat Petroleum Corporation Limited (BPCL) under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a sole Arbitrator in disputes arising from an LPG Cylinders Transportation Contract Agreement dated 01.09.2018. BPCL stated that the respondent, engaged for transportation of LPG cylinders from its Khurda, Odisha filling plant, failed to return 414 empty cylinders of 14.2 kg capacity and 24 empty cylinders of 19 kg capacity and failed to report the trucks, resulting in bottling losses. BPCL quantified penal damages at Rs.10,13,400/-, together with GST at 18%, aggregating to Rs.11,95,812/-.
After reversal of an earlier debit, the respondent allegedly still failed to return the cylinders, following which BPCL encashed a bank guarantee of Rs.5,00,000/- and demanded the balance Rs.6,95,812/- with interest. BPCL had earlier invoked arbitration by notice dated 28.12.2021 and filed AP/625/2023, which was withdrawn with liberty to proceed afresh because that notice had incorrectly been described as one under Section 11 instead of Section 21 of the Arbitration and Conciliation Act, 1996. BPCL thereafter issued a fresh Section 21 notice dated 13.05.2026, to which the respondent neither replied nor took steps to constitute the Arbitral Tribunal.
