Ajit Gulabchand-led Hindustan Construction Company (HCC) has won an arbitral award worth Rs 200 crore against state-owned Ircon International. The tribunal also stated that the termination of the contract between the parties by Ircon was invalid. In addition, the New-Delhi-based tribunal also rejected Ircon’s claim of Rs 419 crore.
On March 31, 2021, the tribunal passed a majority award holding that the termination of the contract by Ircon was invalid. A total amount of Rs 198 crore (approximately) was awarded in favour of HCC along with post-award interest at the rate of 15.75 per cent per annum.
The tribunal also awarded an amount of about Rs 1.31 crore as arbitration costs, it was stated by the law firm JSA. The JSA team comprising Dhirendra Negi, Partner and Pragya Chauhan, Principal Associate represented HCC at the tribunal.
HCC dragged Ircon International to an arbitral tribunal comprising of Justice (Retired) Badar Durrez Ahmad, Suresh Kumar and Bhuvnesh Prakash Khare over the termination of the contract.
This dispute is about the contract for construction of a 10-km-long railway tunnel (T-48) on the Dharam-Qazigund section of the Udhampur-Srinagar-Baramulla New BG Railway Line Project. This contract was worth Rs 884 crore. It was terminated by Ircon on the ground of slow progress of works by HCC.