Customer Wins Arbitral Award Against Thermax

Thermax Ltd. said an arbitral tribunal ruled in favor of a customer in the arbitration matter regarding recovery of damages and losses for breakdown of two gas turbo generators (GTGs).

The tribunal, consisting of a sole arbitrator, passed the order on 5 June, the Indian sustainable energy solutions provider said in a stock exchange announcement today. It didn’t reveal the name of the customer.

The arbitrator directed Thermax to repair and reinstate both the GTGs at the customer’s plant at the company’s own cost and expenses under the defect liability clause, according to the statement. The company has since taken action to repair and reinstate the GTGs, it said.

The company said the arbitrator also allowed the customer’s claim on additional expenditure on power and directed Thermax to pay 173.72 crore rupees ($21 million) with interest along with a sum of 95 lakh rupees as arbitration cost to the customer.

The arbitrator dismissed other claims and counter claims made in the matter, it noted.

Thermax said the award would have an estimated total financial impact of about 250 crore rupees on the company.

The company also said it has been advised that the order is not based on proper appreciation of facts and is in the process of challenging the award before the appropriate appellate authority.

Note: $1 = 82.5484 Indian rupees)

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