Ashok Leyland Wins Part of Arbitration Case Against DTC; Tribunal Awards ₹222.65 Crore Plus Interest
Ashok Leyland Limited has received a significant development in its ongoing arbitration proceedings against Delhi Transport Corporation (DTC) from the Arbitral Tribunal, New Delhi. The Tribunal issued an award detailing the outcome of the dispute concerning contracts for bus supplies between 2009 and 2011.The dispute originated after Ashok Leyland Limited (AL) supplied buses to DTC under a tender invited by DTC. In response to these contracts, AL had initiated arbitration against DTC starting in 2013. The original claim filed by AL amounted to ₹445 Crore, while DTC put forward a counterclaim valued at ₹136 Crore.
The Arbitral Tribunal delivered its majority Award on July 6, 2026, providing a ruling on the claims.
Key Outcomes of the Arbitration
The Tribunal ruled in favor of Ashok Leyland Limited regarding part of its claims. The awarded amount totals ₹222.65 Crore, which includes an interest rate of 10% per annum calculated for the pre-arbitration period, pendente lite, and from the date of the Award until payment is made. Additionally, AL was granted legal costs amounting to ₹2.96 Crore.Crucially, the Tribunal rejected the counterclaim filed by Delhi Transport Corporation entirely.
Financial details regarding the litigation are summarized below:
| Particulars | Value |
|---|---|
| Original Claim (AL) | ₹445 Crore |
| Counterclaim (DTC) | ₹136 Crore |
| Award Granted to AL | ₹222.65 Crore + Interest @ 10% p.a. |
| Legal Costs Awarded to AL | ₹2.96 Crore |
Next Steps for Ashok Leyland Limited
In light of the Tribunal's decision, Ashok Leyland is currently reviewing the contents of the award. The company is in the process of ascertaining the final awarded amount once interest is factored in and is actively considering various options concerning the remaining portion of the claims that were not granted by the Tribunal.ASHOKLEY Stock Price Movement
Ashok Leyland Limited shares are edging higher to ₹158.08 as of 12:45 PM today, rallying by 0.37% in live trading. The equity shows robust interest, with more than 10.27 million shares currently being traded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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