In Brief
Hyundai Corporation contracted with ONGC for offshore oil platform facilities. After the Income Tax Act's retrospective application introduced Section 44BB (taxing foreign service providers), Hyundai claimed indemnity for taxes paid by its sub-contractor under Clause 17.3 (change of law). Two arbitrators agreed Clause 17.3 applied but disagreed on whether Clause 13.2.8 (sub-contractor liability) blocked it. The appointed Umpire wrongly decided whether Section 44BB tax was payable—an issue already settled—instead of only deciding if Clause 13.2.8 interdicted Clause 17.3. The Supreme Court set aside the Umpire's award as exceeding jurisdiction and remitted the narrow issue to a new Umpire.
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