The Delhi High Court has dismissed a petition filed by the National Highways Authority of India (NHAI) challenging an arbitral award of over Rs 54 crore granted in favour of PNC Infratech Ltd for delay in the widening of National Highway-24 between Garhmukteshwar and Moradabad in Uttar Pradesh.
Justice Navin Chawla said there was no merit in the petition filed by the NHAI.
The judge also noted that the NHAI, in compliance with the court's January order, had deposited the awarded amount in the court.
He said subject to any other order being passed by a competent court, the deposited amount, along with interest, be released in favour of PNC after eight weeks.
The arbitral tribunal, in its 2018 order, had said, "Therefore, we allow the present sub-claim as regards compensation for loss of overheads and profits. However, the aforementioned claim being awarded is restricted to Net Loss incurred at the end of 24 months i.e. Serial No. 6 of Claim Chart and Net loss incurred in the extended period i.e. Serial No. 12 of Claim Chart only, which amounts to Rs 54,28,76,972.00/- (mentioned under Serial No. 13 of Claim Chart). Accordingly, the amounts mentioned thereafter, permitting to period of ROB works, for a total amount of Rs 29,25,797.00/-, are hereby rejected."
Regarding the amount awarded by the tribunal, Manoj K Singh, founding partner at Singh and Associates and the lawyer for PNC, said, "The arbitral tribunal allowed the claim to the extent of approximately Rs 109 crore. After including interest, the amount goes to approximately Rs 142 crore."
Disclaimer: No Business Standard Journalist was involved in creation of this content