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Reliance Infrastructure receives favorable judgment in Rs.1,250crore dispute

Sep 30, 2023

By: BlinkX Research Team

Reliance Infrastructure Limited has secured a favorable judgment in a legal dispute involving Damodar Valley Corporation (DVC) related to the Raghunathpur Thermal Power Project. The Hon’ble High Court at Calcutta pronounced its judgment on September 29, 2023, addressing DVC's challenge to the Arbitration award dated December 21, 2019.

In the Arbitration award, DVC was directed to pay approximately Rs 1,250 crore to Reliance Infrastructure, which included Rs 896 crore in monetary compensation and the return of Bank Guarantees worth Rs. 354 crore.

The recent judgment by the Hon’ble High Court largely upholds the Arbitration award, with certain exceptions. It recognizes the company's right to receive approximately Rs 1,354 crore, which includes interest accrued to date, along with the return of Bank Guarantees worth Rs. 354 crore. 

The company is currently conducting a comprehensive review of the judgment and will follow legal advice to enforce the upheld portion of the award and possibly challenge the judgment to the extent it affects the Arbitration award.