Reliance Infra vs Aravali Power: Ambani's co wins Rs 526 crore arbitral award
Reliance Infrastructure has secured an arbitration award of Rs 526 crore against Aravali Power Company Ltd. This favorable outcome stems from the arbitral tribunal's decision, which deemed the termination of their contract invalid. The award cover...
A three-member arbitral tribunal, by a majority award, has held that the termination by APCPL was illegal, invalid and wrongful and partly allowed the Company’s claims towards damages and costs incurred due to wrongful termination, the company said on Wednesday.
The arbitration award in favour of Reliance Infra is for a sum of Rs. 526.23 crore along with interest.
Reliance Infra had invoked arbitration against the wrongful termination of contract by Aravali Power Company Ltd. in 2018.
The proceeds from the award will be utilised by Reliance Infra for capital growth, the company said.
On July 1, Delhi High Court sought a response from Reliance Infra on a petition by Aravali Power Company, seeking enforcement of the Rs 600-crore arbitral award that it had won against the Anil Ambani firm in December last year.
Alleging breach of contract against RInfra, Aravali Power issued notice of termination and invoked arbitration in 2018.
The Supreme Court appointed three-member arbitral tribunal in a majority award, granted a principal amount of Rs 419 crore with Rs 5 crore cost and an interest of Rs 149 crore on the principal amount and future interest on the principal amount till actual date of payment.
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