The High Court of Bombay has overturned an earlier arbitral award in favor of Rashtriya Chemicals and Fertilizers Limited (RCF) concerning a dispute with Thermax Limited. The original award related to damages from a gas turbine breakdown. RCF has been directed to refund ₹218.45 crore, plus interest. The company is reviewing its options to protect its interests.
Bombay High Court Ruling
In a recent decision, the High Court of Bombay has set aside an arbitral award initially granted in favor of Rashtriya Chemicals and Fertilizers Limited (RCF) in a dispute with M/s Thermax Limited. This order, dated December 9, 2025, reverses a previous ruling concerning damages sought by RCF following a breakdown of gas turbine generators.
Financial Implications
The court has directed RCF to refund the amount of ₹218,45,88,493/- (Rupees Two Hundred Eighteen Crore Forty-Five Lakh Eighty-Eight Thousand Four Hundred Ninety-Three only) previously deposited by Thermax, along with an annual interest of 6%. RCF has been granted a period of four weeks to explore available remedies.
Company Response
RCF is currently evaluating its next steps to safeguard its interests following this development. The initial dispute centered around the recovery of losses and damages related to the breakdown of two Gas Turbo Generators (GTGs). The company is expected to announce its course of action in the near future, following a comprehensive review of the court’s order.
Source: BSE