HC notice to RInfra, China co on Aravali Power plea for arbitral award payout
This story was originally published at 14:17 IST on 1 July 2025
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--HC notice to RInfra, Chinese co on Aravali Power plea on arbitral award
--CONTEXT:Aravali Power seeks arbitral award enforcement on RInfra, China co
--HC to hear Aravali Power plea against RInfra, Shanghai Sinofinn on Jul 28
NEW DELHI – The Delhi High Court Tuesday issued notices to Reliance Infrastructure Ltd. and Chinese company Shanghai Sinofinn New Energy Investment Co. Ltd. on Aravali Power Co. Pvt. Ltd.'s plea to enforce a December arbitral award. According to Aravali Power's plea, Reliance Infrastructure and Shanghai Sinofinn need to pay it INR 5.73 billion, along with interests.
The high court will hear Aravali Power's plea next on Jul. 28. On the same date, Reliance Infrastructure's petition challenging the December arbitral award is also listed for hearing in the high court.
The dispute arises due to the damages suffered by Aravali Power as a direct result of the respondents' breach of contract relating to the installation of a flue-gas desulfurization system package for the Indira Gandhi Super Thermal Power Project located at Jhajjar with a capacity of 3X500 megawatt.
In 2016, a memorandum of understanding was entered into between Reliance Infrastructure and Shanghai Sinofinn to provide a framework to develop, undertake and deliver world class environmental protection retrofit projects for control of environmental pollution. Thereafter, licences were granted by Shanghai Sinofinn to Reliance Infrastructure for the non-exclusive right to design, construct, manufacture, use and sell the process and plant for limestone-based flue gas desulfurization systems in India.
Aravali Power had sent invitations for bids sent to Reliance Infrastructure on the basis of the latter's prior qualification for limestone-based flue gas desulfurization systems along with its collaborator Shanghai Sinofinn on the lines of similar design and technology. Thereafter, Aravali Power issued notification of awards in favour of the respondents for supply of limestone-based flue gas desulfurization systems package for the Jhajjar project and inland transportation, insurance, installation, testing and commissioning, and conducting guarantee tests for the limestone-based flue gas desulfurization systems package.
In 2018, Aravali Power served a show cause Notice to Reliance Infra and the Chinese company for alleged incomplete drawings, incomplete bought-out-items ordering, and non-submission of bank guarantee. Alleging breach of contract against Reliance Infrastructure and Chinese company, Aravali Power invoked arbitration in 2018.
The arbitral tribunal had awarded a principal amount of INR 4.19 billion. Further, the award would include a cost of INR 50 million, an interest of INR 1.49 billion on the principal amount and future interest on the principal amount till actual date of payment.
At 1401 IST, the shares of Reliance Infrastructure were flat at INR 409.70 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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