SC OKs rejection of arbitral award that asked GMR Kamalanga to pay SEPCO
This story was originally published at 11:19 IST on 26 September 2025
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--SC OKs rejection of arbitral award that asked GMR Kamalanga to pay SEPCO
--CONTEXT: HC rejected arbitral award that asked GMR Kamalanga to pay SEPCO
NEW DELHI – The Supreme Court on Friday upheld an Orissa High Court order that had rejected a 2020 arbitral award asking GMR Kamalanga Energy Ltd. to pay INR 11 billion to SEPCO Electric Power Construction Corp. The apex court rejected a plea by SEPCO Electric Power challenging the high court's 2023 ruling.
In 2023, the Orissa High Court had set aside the arbitration award, noting that the tribunal had created a new contract for the parties "by not only re-writing large portions of the same but also disregarding certain explicit embargoes therein, which goes against the basic notions of justice..."
GMR Kamalanga and SEPCO Electric came together in 2008 for the construction and subsequent operation of three 350 MW coal-fired thermal power plants at Kamalanga village in Odisha's Dhenkanal. A dispute arose between the parties due to delays in construction and various technical issues relating to the construction and operation of the thermal power plant.
Consequently, SEPCO initiated arbitration proceedings against GMR Kamalanga. In 2020, the arbitral tribunal held that GMR Kamalanga was liable to pay 11 bln rupees to SEPCO. Challenging this, GMR Kamalanga moved a single-judge of the high court. The single judge dismissed GMR Kamalanga's petition, after which it appealed before the division bench of the high court, which quashed the arbitral award. End
Reported by Surya Tripathi
Edited by Avishek Dutta
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