High Court Upholds Arbitral Award in Dispute, Concluding PCTL Litigation for Siemens Energy India Limited
Siemens Energy India Limited has confirmed that the ongoing dispute related to a material civil proceeding has been resolved following a recent judgment by the High Court of Bombay. The Court upheld the original arbitral award concerning the energy business, finding no additional financial liability on the company as all mandated payments have already been made.The case pertains to a long-running contractual matter stemming from a 2010 turnkey project involving a large power facility and its subcontractor.
Dispute Background and Arbitration Timeline
The core of the dispute originated when the Energy Business, later transferred through a demerger, was awarded a project for the 1200 MW DGEN Mega Power Project by Torrent Energy Limited to Paharpur Cooling Towers Limited (PCTL) via a subcontract issued on December 24, 2010.The Demerged Company asserted claims amounting to ₹ 2605.40 million against PCTL. The situation escalated when bank guarantees aggregating ₹ 347.30 million were provided by PCTL under the subcontract. Torrent subsequently imposed liquidated damages on the company due to delays in executing the subcontract works.
The legal history of the matter included multiple proceedings and subsequent resolutions:
| Stage of Dispute | Year(s) | Financial Details / Outcome |
|---|---|---|
| Initial Action | 2010 - 2014 | PCTL issued bank guarantees worth ₹ 347.30 million. The Demerged Company encashed these guarantees in August 2014. |
| FIR Filing & Quashing | 2014 - 2015 | PCTL filed an FIR alleging fraudulent encashment, which was quashed by the High Court of Calcutta (July 31, 2015). The Supreme Court later upheld this quashing order on November 6, 2015. |
| Arbitration Award | 2019 | An arbitral award was issued, partially upholding the Demerged Company's claims to the extent of ₹535.30 million. The company was mandated to remit ₹208.40 million with 6.00% p.a. interest. |
| Payment Status | 2019 - 2020 | PCTL challenged the award in the High Court of Bombay. The Demerged Company paid cheques amounting to ₹246.90 million in October 2019, which were accepted by PCTL in February 2020. |
Judicial Resolution Confirms Award Validity
The dispute came to a definitive conclusion when the Hon'ble High Court of Bombay delivered its judgment on June 8, 2026. The Court dismissed the petition filed by PCTL under Section 34 of the Arbitration and Conciliation Act, 1996, which had challenged the original arbitral award.By upholding the earlier arbitral decision, the High Court rejected all grounds put forth by PCTL in its challenge. Siemens Energy India Limited stated that this judgment results in no additional financial liability on the company, as the amounts owed pursuant to the arbitral award have already been paid.
ENRIN Stock Price Movement
Siemens Energy India Limited is rallying in live trading as of 3:28 PM, pushing its shares up by 1.57% to currently trade at ₹3555.9. The stock saw robust activity today, with a traded volume reaching 210,653 shares.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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