With Supreme Court striking down provision granting automatic stay on arbitral award, Hindustan Construction Co Ltd (HCC) will now be in a position to execute awards amounting to about Rs 1,584 crore, the company said on Friday.
"Hindustan Construction Co Ltd (HCC) won a challenge in the Supreme Court of lndia for setting aside Section 87 of the Arbitration and Conciliation Act... In HCC's case, the company will now be in a position to execute awards amounting to about Rs 1,584 crore which were impacted by Section 87," the construction firm said in a statement.
The engineering, procurement and construction sector has been plagued by non-payment of arbitration awards, which mainly comprise delay damages on account of overstays at site, it added.
HCC has 56 arbitration awards outstanding, totalling Rs 6,419 crore. Of this amount, Rs 2,532 crore has been withdrawn against bank guarantees, HCC said, adding that the remaining Rs 3,887 crore is yet to be received as the matters are currently at various stages of challenge by government agencies in court.