STEEL AUTHORITY OF INDIA LIMITED vs PRIMETALS TECHNOLOGIES INDIA PVT. LTD.

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 12.02.2026 Judgment pronounced on: 18.02.2026 + O.M.P. (COMM) 233/2025 & I.A. 15455/2025 STEEL AUTHORITY OF INDIA LIMITED .....Petitioner Through: Mr. Rajshekhar Rao, Sr. Adv. with Mr. Samaksh Goyal, Adv. versus PRIMETALS TECHNOLOGIES INDIA PVT. LTD. .....Respondent Through: Mr. Rajesh Markanda, Mr. Keshri Kumar & Mr. Saurav Markanda, Advs. CORAM: HON'BLE MR. JUSTICE AVNEESH JHINGAN JUDGMENT 1. This petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short „the Act‟) challenging the arbitral award dated 28.08.2024 read with the addendum dated 22.11.2024. FACTS 2. The brief facts are that the parties to the lis entered into a contract on 03.03.2008 for setting up a Hot Dip Galvanising Line (HDGL) and Electrolytic Cleaning Line (ECL). The contract amount was Rs.223,78,09,443/- for HDGL and Rs.67,77,77,720/- for ECL and was to be executed within twenty-eight months. The projects were successfully commissioned by the respondent on 26.06.2018 and 20.02.2017 respectively. The final acceptance certificates were issued on 05.05.2023 and 15.02.2019 respectively. 2.1 The contract provided for a minimum guaranteed CENVAT Signature Not Verified Signed By:HONEY O.M.P. (COMM) 233/2025 Page 1 of 11 ARORA Signing Date:18.02.2026 15:31:55 credit (for short „MGCC‟) to be passed on to the petitioner. Deduction for shortfall in MGCC from the net contract value led to the invocation of arbitration proceedings. 2.2 The Arbitral Tribunal (for short „tribunal‟) decided the issue against the petitioner relying upon the decision of this court in Steel Authority of India Limited v. M/s Primetals Technologies India Pvt. Limited (formerly known as Siemens VAI Metals Technologies Pvt. Ltd.) 2020 SCC O