The Delhi High Court has canceled a arbitration verdict of Rs 1,981 crore against NTPC. In its decision of 30 January (uploaded on Monday), the single bench of the High Court said the arbitration was ‘clearly illegally and unfair’.
The High Court order of January 30 said, ‘The court believes that the disputed decision should be completely canceled as it has been passed on the wrong basis and it is’ distorted’ and ‘clearly illegal’ category Comes in The concerned parties will be free to take advantage of proper legal measures.
The arbitration verdict against NTPC was for the Jindal Inflowologist Limited (Jindal ITF), the unit of the OP Jindal Group. This arbitration decision was pronounced due to delay in the construction of the infrastructure required to deliver coal to Farakka thermal Power Plant in West Bengal.
In 2011, NTPC, Jindal ITF and Inland Waterways Authority of India signed a seven -year -old tripartite agreement for the power plant for the power plant. The Farakka plant is managed and controlled by NTPC and the Jindal ITF was contracted by NTPC for the construction of infrastructure for the transportation of imported coal. The alleged infrastructure was to be completed in two phases, with the first phase to be completed in 15 months (from the date of signing of the agreement) while the second phase was planned to be completed in 24 months.
After delay in construction work, NTPC canceled its agreement with Jindal ITF. Jindal ITF started the arbitration process against NTPC in late 2016.