Thermax has been advised that the order is not based on proper appreciation of facts and is in the process of challenging the award before the appropriate appellate authority
In the matter of Arbitration between Rashtriya Chemicals and Fertilizers (RCF) and Thermax (Contractor) regarding recovery of damages, losses, etc. for breakdown of two Gas Turbo Generator (GTGs), an award has been passed by a Arbitral Tribunal consisting of Sole Arbitrator on June 5, 2023.
The Sole Arbitrator has passed an Award in favor of RCF and directed Thermax to repair and reinstate both the GTGs at company's plant at their own cost and expenses under the defect liability clause.
The Arbitrator has also allowed the company's claim on additional expenditure incurred on power and directed the contractor to pay Rs. 173.72 crores with interest @ 10% from the date of claim and a sum of Rs. 95 Lakhs as arbitration cost to the company.
The Arbitrator dismissed other claims and counter claims made in the matter. Thus, the award would have an estimated total financial impact of approximately Rs. 250 crores on Thermax.
Thermax has been advised that the order is not based on proper appreciation of facts and is in the process of challenging the award before the appropriate appellate authority.
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