New Delhi, Sept. 9 -- The Delhi High Court's September 2 split verdict in the Jindal ITF Limited (JITF)-NTPC dispute has left nearly Rs 1,800 crore in claims undecided, giving NTPC another opportunity to challenge the 2019 arbitral award.
While Justice C. Hari Shankar allowed JITF's appeal and restored the arbitral award, Justice Om Prakash Shukla disagreed on four key claims - 1, 3, 3A and 5A - worth around Rs 1,883 crore of the Rs 1,891-crore award.
Justice Shukla backed NTPC's position that the Single Judge was justified in setting aside the award on grounds of patent illegality. He held that the Arbitral Tribunal could not go beyond the remedies and limits prescribed under the contract.
NTPC had argued that JITF's performance fell well below contractual requirements, citing unloading of about 8,300 MT per day against 12,000 MT and transportation delays of up to 163 days against the stipulated five.
The power major also challenged Rs 424 crore awarded under Claim 1 and around Rs 1,108 crore in termination damages under Claim 5A. It argued that contractual provisions limited the remedies and compensation payable.
The split verdict means the award has not been finally restored. The point of difference has been referred to the Chief Justice for consideration by a Third Judge or Larger Bench, leaving NTPC's challenge to the bulk of the award alive.
Published by HT Digital Content Services with permission from Millennium Post.