In Brief
A dispute arose over refurbishment of power plant units under a contract between M.P. Power Generation Co. (Board) and ANSALDO Energia SPA. The Board wrongfully invoked bank guarantees and terminated the contract. An arbitral tribunal found the Board had misrepresented the units' operating capacity, breached fundamental contract conditions by failing to furnish required letters of comfort, and wrongfully terminated the agreement. The tribunal awarded refund of performance guarantees and compensation for work performed. The Supreme Court upheld the tribunal's findings on misrepresentation, breach, and wrongful termination as factual determinations not subject to appellate review. However, it modified the award to exclude refund of advance payment bank guarantees since the Board had actually paid those advances. The Court affirmed entitlement to Rs. 18.48 crores (performance guarantee) and Rs. 11.14 crores (work performed), both with 12% interest.
The lawyer headnote and full judgment text are available to registered users.