NHPC LTD Vs. HINDUSTAN CONSTRUCTION COMPANY LTD

JUDGEMENT

(1.) Ia No.10056/2020

(2.) The applicant/respondent is the Award Holder in the arbitral award dated 14.10.2019 passed by a three-member Tribunal in the arbitration conducted between these two parties in relation to disputes arising out of the turnkey execution of the 330 MW hydroelectric power plant project on the Kishanganga River in Bandipora, Jammu and Kashmir (hereinafter referred to as 'the project'). As per the terms of the contract executed between them on 09.03.2009, the project involved construction of three generating units, viz. Units I, II and III carrying power generation capacity of 110 MW each, and 330 MW in total. Considering the remote and politically charged nature of the project location, there were delays in executing the project which caused losses to both the parties and led to disputes between them as to who was to be blamed for these delays. As a result, the respondent invoked arbitration on 31.01.2017 and the award impugned in the captioned petition came to be passed on 14.10.2019. In its award, the learned Tribunal, after holding the petitioner liable for causing delays, has granted the applicant/respondent a total extension of time of 514 days in the project timeline and a total sum of INR 163.55 crores (inclusive of the costs claimed alongwith the pre-award interest @12% p.a.) along with future interest @ 9% p.a. till the date of actual payment, provided no future interest would be payable if the awarded amount was paid within ninety days of the date of the award. It is an admitted case that the awarded amount was not paid to the respondent during the ninety day period and the captioned petition has been filed by the petitioner assailing the findings in this award.

(3.) When this petition was taken up for the first time on 25.09.2020, this Court while issuing notice and directing stay of the award dated 14.10.2019, had directed the petitioner to deposit the awarded amount with this Court by 05.10.2020. At the time, the petitioner had sought time till 24.10.2020 to effectuate the deposit, which request was not accepted by this Court on the ground that almost ten months had passed since the date of passing of the award. The quantum and time period contained in the direction for deposit was assailed by the petitioner before the Supreme Court by way of SLP(C)No.11777/2020 which was listed for 06.10.2020, which implied that the direction for deposit remained in suspension till then. However, the SLP soon came to be dismissed by the Supreme Court by granting the petitioner time till 25.10.2020 to make the deposit as directed. When all these court-ordered extensions of time to make the deposit of the awarded amount came to an end, the petitioner duly deposited the amount before this Court. Soon thereafter, the respondent/Award Holder moved the present application seeking release of the amount deposited before this Court. The petitioner was granted time to respond to this application and has already filed its reply opposing release of the deposited amount in favour of the respondent.