The Calcutta High Court upholds Reliance Infrastructure's victory in a Rs. 1,354 billion award

 The Calcutta High Court upholds Reliance Infrastructure's victory in a Rs. 1,354 billion award

Reliance Infrastructure revealed in December 2019 that it has defeated DVC in arbitration and received a $1,250 billion award.

In its case against Damodar Valley Corporation (DVC), the Calcutta High Court confirmed the "majority'' of an arbitration judgement of Rs. 1,354 crore in favor of Reliance Infrastructure Ltd., a member of the Anil Ambani group.

The majority of the award of Rs. 1,354 crore, including interest to date, and including Rs. 354 crore in bank guarantees that DVC returned to the business at the instruction of the arbitral tribunal, has been upheld by the Hon'ble High Court, the firm stated.

Reliance Infrastructure said in December 2019 that it has defeated DVC in arbitration and received a $1,250 billion award.

The panel ordered DVC to pay Rs. 896 crore and repay Rs. 354 crore in bank guarantees within four weeks, or pay additional interest at a rate of 15% per year for any payment delays.

The two sides have been at odds since the Anil Ambani group company won a Rs 3,750 crore contract to build a thermal power station at Raghunathpur in West Bengal ten years ago.

However, it appears that the project experienced a number of disagreements and delays for which DVC filed a lawsuit against Reliance Infrastructure. Although the latter contested this, the arbitration tribunal decided in its favor.

DVC then requested a stay of the December 2019 arbitration ruling in a petition that was filed with the Calcutta High Court pursuant to Section 36(2) of the Arbitration and Conciliation Act, 1996.

The award was made to Reliance Infrastructure, and the Calcutta High Court had ordered DVC to pay it.

The dispute had also made it to the Supreme Court, which dismissed DVC's appeal of the Calcutta High Court's ruling in April 2022.

DVC already released the bank guarantee and gave Reliance Infrastructure Rs 595 crore.

Reliance Infrastructure stated, "The company is in the process of undertaking A comprehensive examination of the judgment and shall take further steps as per legal advice to put into effect the award to the extent it is upheld or otherwise initiate proceedings regarding the judgment dated September 29, 2023 to known as the extent it interferes with the award.