The National Hydroelectric Power Corporation has moved the Supreme Court against the order of a larger bench of the Delhi High Court refusing to interfere with an earlier decision asking it to pay 75 per cent of an arbitral award granted in favour of a construction company.
The National Hydroelectric Power Corporation (NHPC) has moved the Supreme Court against the order of a larger bench of the Delhi High Court refusing to interfere with an earlier decision asking it to pay 75 per cent of an arbitral award granted in favour of a construction company. NHPC has challenged the September 13 order of a division bench of the high court which had dismissed its appeal against the single judge bench order asking it to either pay the arbitral amount to Hindustan Construction Company Limited or deposit Rs 40 crore, 75 per cent of the money, with the registry of the high court.
The PSU alleged that the high court failed to appreciate the pre-requisite conditions which were to be fulfilled by the construction firm for releasing the payment.
“The court had overlooked the guidelines formulated by NITI Aayog in its various circulars for release of amount to the contractors during pendency of challenge to arbitration awards,” the PSU said. An arbitral award was passed in favour of the construction firm on May 6, 2016.
NHPC had challenged the same in a trial court which had later transferred the case to the Delhi High Court on April 17 this year. NHPC claimed that the firm has not yet complied with the requirements issued by NITI Aayog in order to claim the benefits of the award.
NITI Aayog had in 2016 issued an office memorandum listing various measures to revive the construction sector.