High Court asks HSIIDC to pay ₹1,737 crore to IDBI Bank-led lenders

New Delhi: The Delhi High Court has asked Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) to pay the ₹1,737-crore arbitration award that IDBI Bank-led lenders won in March 2020 in a contract related to developing the Kundli-Manesar-Palwal Expressway.

Upholding the arbitration award, with interest at 9% per annum from the date of the award, a division bench comprising Justices Najmi Waziri and Vikas Mahajan said, "The scope of interference and examination is limited under Section 37 (of the Arbitration Act)", and all the contentions raised by HSIIDC "were already considered by the single judge, who reasoned that the methodology devised by the arbitral tribunal is an integral part in calculating the quantum of damages".

The state corporation in 2009 had borrowed money from banks led by IDBI Bank for developing the 135-km-long Expressway. KMP Expressway was roped in as the concessionaire. However, HSIIDC terminated the contract due to a delay and substituted two new concessionaires on terms that were different from those with KMP. The lenders then claimed damages on the ground that the appointment of the new concessionaires had prejudiced their interests and they should be awarded damages equivalent to the debt due from the concessionaire.


A three-member arbitral tribunal on March 24, 2020 ruled in favour of the banks. HSIIDC challenged the arbitral award in the high court. Senior counsel AM Singhvi and counsel Raunak Dhillion appeared for IDBI. HSIIDC was represented in the court by senior counsel Sudhir Nandrajog.