Delhi High Court: Split Verdict on ₹1,889 Crore Jindal-NTPC Arbitral Award

A division bench of the Delhi High Court on Wednesday delivered a split verdict on whether an arbitral award directing NTPC Limited to pay over ₹1800 crore to Jindal ITF Limited (JITF) should be sustained [M/s Jindal ITF Limited v NTPC Limited & Anr]. Justice C Hari Shankar upheld the arbitral tribunal’s findings on certain claims while Justice Om Prakash Shukla disagreed and held that the award on these claims could not be sustained.The case has now been referred to the Chief Justice to be placed before a third judge or a larger bench. “Accordingly, the point of difference is thus framed, for being placed before Hon’ble the Chief Justice for being placed before a learned Third Judge or a Larger Bench, as he would deem appropriate: 'Whether the decision of the learned Single Judge, with respect to Claims 1, 3 and 3A and 5A is sustainable in law?',” the Court ordered. Justice C Hari Shankar and Justice Om Prakash ShuklaThe dispute arose from a 2011 tripartite agreement between NTPC, the Inland Waterways Authority of India (IWAI) and JITF for transportation of imported coal through inland waterways to NTPC’s Farakka Thermal Power Plant.In an order passed in January 2019, the arbitral tribunal awarded a total of nearly ₹1,889.32 to JITF for alleged delays and deviations and shortfalls in NTPC’s minimum guaranteed quantity (MGQ) of coal.JITF was awarded ₹424.08 crore under claim 1 towards delays and deviations attributable to NTPC. The tribunal further aw