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High Court of Gujarat

PMP INFRATACK LIMITEDversusOIL AND NATURAL GAS LIMITED

Disposal
53-ALLOWED / GRANTED @ ADM.STAGE

Holding

The ban order cannot be sustained and is quashed.

Summary

The petitioner, PMP Infratack Ltd., challenged an order by Oil and Natural Gas Ltd (ONGC) that banned it from contracting, which was based on the termination of their contract. Both parties admitted that during the pendency of the writ petition the dispute was referred to arbitration, and the arbitral tribunal held that the termination was improper and awarded Rs.200,000 to the petitioner. ONGC argued that it would challenge the award and cited the petitioner’s delay in executing the award as a reason to maintain the ban. The Court held that since the termination was declared invalid by the arbitral award, the ban could not be justified. Consequently, the Court quashed the impugned order and allowed the petition.

Issues considered

  • Whether the ban order issued by ONGC, predicated on contract termination, can be sustained after an arbitral award declares the termination improper.
  • Whether the petitioner’s delay in executing the arbitral award bars relief from the ban.

Subjects

contract terminationarbitration awardban orderwrit petitionquashing orderONGCcontractordelay in execution

Judgment

    C/SCA/6715/2025                                       ORDER DATED: 08/05/2026




          IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

            R/SPECIAL CIVIL APPLICATION NO. 6715 of 2025

==========================================================
                        PMP INFRATACK LIMITED
                                Versus
                  OIL AND NATURAL GAS LIMITED & ORS.
==========================================================
Appearance:
BHOOMI M THAKORE(6237) for the Petitioner(s) No. 1
MR. HARSH K THAKAR(7172) for the Petitioner(s) No. 1
MR UNMESH SHUKLA, SR. ADV. with MR RITURAJ M MEENA(3224) for
the Respondent(s) No. 1,2,3
==========================================================

 CORAM:HONOURABLE MR.JUSTICE N.S.SANJAY GOWDA
       and
       HONOURABLE MR.JUSTICE J. L. ODEDRA

                                Date : 08/05/2026

                        ORAL ORDER
       (PER : HONOURABLE MR.JUSTICE N.S.SANJAY GOWDA)

  1. An order to banning by the Oil and Natural Gas Limited

      (ONGC) is called in question in this writ petition.

  2. It is not in dispute that the order of banning was solely

      because the contract that the petitioner entered into with

      ONGC had been terminated and the termination of a

      contract was by itself a sufficient ground for banning a

      contractor.

  3. It is now admitted by both the learned Senior Counsel

      that during pending the pendency of the writ petition, the

      dispute         between   the    parties      had     been      referred      to


                                    Page 1 of 2
        C/SCA/6715/2025                                                 ORDER DATED: 08/05/2026




          Arbitration and an arbitral award has been passed, in

          which it is held that the termination of the contract was

          improper.

     4. Learned Senior Counsel for the petitioner submits that as

          a matter of fact, the award of Rs. 200,000/- is ordered in

          favour of the petitioner.

     5. Learned Senior Counsel appearing for ONGC submits that

          the ONGC is contemplating challenging the award and he

          also seeks to argue that there was an immense delay on

          the part of the petitioner in executing the award and,

          therefore, the order of banning should not be interfered

          with.

     6. In our view, since the order of banning the petitioner was

          solely based on termination and now that the termination

          has been held to be bad by the arbitral Tribunal, the order

          of banning the petitioner cannot be sustained.

     7. Accordingly, the impugned order is quashed. Petition

          stands allowed accordingly.


                                                                     (N.S.SANJAY GOWDA,J)



                                                                               (J. L. ODEDRA, J)
 SUDHIR


Original copy of this order has been signed by the Hon'ble Judges.
Digitally signed by: SUDHIR ACHUTHAN EZHUTHASSAN(HC00192), GOV, at High Court of Gujarat on 14/05/2026 13:47:57
                                               Page 2 of 2


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