ONGC has won a legal claim worth $21.5 million or Rs 100 crore against Perth-based Clough Engineering, in the Federal Court of Australia. The fact in the issue of the case according to Clough Engineering was that the Indian PSU was not entitled to encash the bank guarantee and that it would not be illegal to invoke the jurisdiction of the Australian courts under the Trade Practices Act of Australia.

 

However, ruling has come in ONGC’s favor. Earlier, Clough Engineering had agreed with ONGC to settle any disputes through arbitration and conciliation in accordance with Indian laws. And, the transaction and contract between the two companies would be under the exclusive jurisdiction of courts in India.

 

Subsequently, when ONGC revoked the performance of contract in the year 2005, the Perth based Clough Engineering took the case into the Federal Court in Australia for the breach of contractual agreement and asked for the specific performance of the same contract. Now, after the judgment the Federal Court of Australia has ended up a year-long battle.