HC stays arbitral award in favour of Ashok Leyland for six months
This story was originally published at 18:37 IST on 2 January 2025
Register to read our real-time news.Informist, Thursday, Jan. 2, 2025
NEW DELHI – The Bombay High Court on Thursday extended the stay on an arbitral award asking Solapur Municipal Corporation to pay INR 512.93 million to Ashok Leyland Ltd. for six months. The high court also modified a lower court order and asked the municipal body to deposit 25% of the arbitral award, amounting to INR 61.60 million for seeking the stay.
The high court asked the lower court to decide expeditiously on the petition filed by Solapur Municipal Corporation challenging the arbitral award.
An arbitral tribunal in 2016 ruled in favour of Ashok Leyland and asked the municipal body to pay INR 512.93 million to Ashok Leyland. Solapur Municipal Corporation moved the Solapur district court against the arbitral award. The district judge in June 2023 stayed the operation of the arbitral award subject to Solapur Municipal Corporation depositing 50% of the award amount.
The Solapur Municipal Corporation then moved the high court seeking to deposit only 25% of the arbitral award amount.
The case has its origins in Ashok Leyland winning a tender in 2013 to supply 145 fully-built 650 mm floor clearance standard non-air-conditioned buses and 35 fully-built 900 mm floor clearance Midi non-AC buses to the municipal body. Between October 2014 to April 2015, Ashok Leyland supplied 99 buses but Solapur Municipal Corporation only made part payment and withheld INR 213.36 million, alleging manufacturing defects in the supplied buses.
On Thursday, the shares of Ashok Leyland ended 6.0% higher at INR 236.08 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
