The High Court of Bombay has set aside an arbitration award dated June 5, 2023, that was previously passed against Thermax. The original award directed Thermax to undertake costly repairs. As a result of the court’s decision, the claimant must refund a deposit of ₹218.45 crores, along with interest. The court has granted a temporary stay on its judgment.
Favorable Court Ruling
Thermax has received a favorable judgment from the High Court of Bombay, which has set aside an earlier arbitration award. This award, originally dated June 5, 2023, had directed Thermax to repair and reinstate certain equipment at its own cost. The legal battle stemmed from a dispute in arbitration with a customer (referred to as “Claimant”).
Financial Implications and Refund
Following the High Court’s decision to set aside the arbitration award, the customer (“Claimant”) is now required to refund the deposit amount of ₹218.45 crores, which had been deposited by Thermax. This refund will also include interest calculated at a rate of 6% per annum. This development provides financial relief for Thermax, reversing a potential liability.
Temporary Stay on Judgment
While the High Court has ruled in favor of Thermax, it has also granted a temporary stay on the operation of the judgment. This stay is for a period of four weeks, allowing the claimant an opportunity to pursue appellate remedies. Thermax will continue to monitor the situation. The stay does not alter the immediate impact of the court setting aside the original arbitration award.
Source: BSE