The Calcutta High Court has upheld an arbitration award of Rs 1,354 crore in favour of Reliance Infrastructure Ltd Reliance Infrastructure which had won an arbitration award in a dispute against the Damodar Valley Corporation (DVC), in respect of the Raghunathpur Thermal Power Project, on December 21, 2019.
The size of the award was Rs 1,250 crore, wherein DVC was directed by the arbitral tribunal to pay Rs 896 crore and return bank guarantees of Rs 354 crore to Reliance Infrastructure.
The DVC had challenged the award in the Calcutta HC. In a regulatory filing to the stock exchanges, the company has said, “The High Court, except for certain items, has upheld majority of the award to the extent of Rs 1,354 crore, including interest till date and bank guarantees of Rs 354 crore which were returned by DVC to the company at the direction of the arbitral tribunal.”
The company further said that it is in the process of undertaking a detailed review of the judgement and shall take further steps as per the legal advice to enforce the award, to the extent upheld. The company will also initiate legal proceedings to challenge the judgement to the extent it interferes with the award.
