Arbitral tribunal rejects MTNL's INR 1.5 bln claim against Sterlite Tech
This story was originally published at 16:01 IST on 3 December 2024
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NEW DELHI – A single member arbitral tribunal has rejected Mahanagar Telephone Nigam Ltd.'s INR 1.45 billion claim, including interests, against Sterlite Technologies in a dispute arising out of a contract between the two parties. Instead, the tribunal has awarded INR 159.05 million to Sterlite Technologies, along with a cost of INR 3 million, to be paid by Mahanagar Telephone Nigam.
The tribunal said that the amounts to be given to Sterlite, except costs, will carry an interest of 7.5% per annum from Jul. 26, 2019 till the date of passing of award on Nov. 29. Sterlite is also entitled for the release of bank guarantee, said the tribunal. The interest of 7.5% per annum would be payable to Sterlite as post award interest in case the amount is not paid by MTNL within 3 months of the passing of the award, the tribunal said.
The case has its genesis from a purchase order by MTNL in 2007 for the supply of broadband access network equipment in Delhi and Mumbai. The order included installation, testing and commissioning on a turnkey basis and the warranty and annual maintenance contract. The dispute arose between the parties on various issues, including the working status of the no objection certificate site, outstanding dues and the performance guarantee. Thereafter, Sterlite Technologies preferred an application to constitute an arbitral tribunal.
At 1456 IST, the shares of Sterlite Technologies were up 1.3% at INR 118.12 on the National Stock Exchange, while the shares of MTNL were up 0.6% at INR 49.22. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Saji George Titus
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