SCL, a wholly owned UK subsidiary of Punj Lloyd had been awarded a contract in 2006 to design, build, construct and pre-commission a low-density polyethylene plant in the UK by SABIC UK Petrochemicals Ltd. The contract was later terminated by SABIC UK and awarded to Simon Carves Ltd. SCL had approached the adjudicator over the termination of a contract awarded.
According to Punj Lloyd, SABIC had terminated this contract prior to its agreed completion date and therefore it decided to seek the views of an adjudicator as to the grounds upon which SABIC terminated the contract.
The third party arbitrator has not ruled in favour of SCL. As a result engineering firm Punj Lloyd has decided to challenge the decision of a third-party arbitrator in the UK and will exercise its right to have all the issues that were heard by the adjudicator, reviewed by the court.