More Stories

Informist, Wednesday, Feb. 18, 2026

 

NEW DELHI – The Supreme Court has asked Rashtriya Chemicals and Fertilizers Ltd. to refund INR-2.18-billion arbitral award to Thermax Ltd. within four weeks. Refusing to interfere with the Bombay High Court order, the top court dismissed Rashtriya Chemicals' plea seeking to retain the amount which was earlier deposited by Thermax Ltd. in the case as a condition for staying a 2023 arbitration award in the former's favour.

 

 

The case has its genesis from Rashtriya Chemicals putting a tender in 2015 for setting up of 2X25 megawatt gas turbine generators and similar things at its factory at Thal, Maharashtra. Thermax emerged as the successful bidder for the tender in 2015 and was accordingly issued a letter of intent in 2016 for award of contract for the said scope of work.

 

However, some disputes occurred between the parties which were referred to an arbitral tribunal. In 2023, the arbitral tribunal ruled in favour of Rashtriya Chemicals and asked Thermax to pay the arbitral award amount. Challenging the arbitral award, Thermax moved the Bombay High Court.

 

While the case was pending, the high court asked Thermax to deposit INR 2.18 billion as a condition for staying the execution of the arbitral award and said that the same will be refunded with an interest of 6% per annum if the ruling was in its favour. In 2025, the single judge bench of the high court set aside the 2023 arbitral award and asked Rashtriya Chemicals to refund INR 2.18 billion with the interest of 6% per annum.

 

While Rashtriya Chemicals challenged the single judge's order before the division bench, it sought to retain the amount deposited by Thermax as a condition for grant of stay of the single judge's order. Rashtriya Chemicals said that it had a good prima facie case on merits and there was a fair chance that the appeal shall eventually succeed. Opposing Rashtriya Chemicals's plea, Thermax said that on setting aside of the 2023 arbitral award, the petitioner was under duty to comply with the direction issued by the single judge to return the money. 

 

On Jan. 28, the high court said that Rashtriya Chemicals had no right over the money deposited by Thermax after a final decision was rendered against them. The effect of the final verdict was that there was no arbitral award in existence and, therefore, there was no question of Thermax suffering rigors of the arbitral award, said the high court.

 

Wednesday, shares of RCF closed 0.8% down at INR 135.04 on the National Stock Exchange and those of Thermax closed 1.3% higher at INR 3,092.30.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.