MAHAGUJ COLLIERIES LTD. vs ADANI ENTERPRISES LTD.

Judgment text excerpt

1-JUDGE-CARBP-483-2018 -.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION COMMERCIAL ARBITRATION PETITION NO. 483 OF 2018 WITH NOTICE OF MOTION NO.1066 OF 2018 Mahaguj Collieries Ltd. …Petitioner (Original Respondent) Versus Adani Enterprises Ltd. …Respondent (Original Claimant) Mr. Sanjay Jain, a/w Ms. Sneha Phene, Mr. Jayendra Kapadia, Ms. Anupreeta Bhat & Mr. Indraneel Nanoti, for the Petitioner. Mr. Ashishchandra Rao, a/w Ms. Ria Dalwani, Ms. Urja Thakkar & Ms. Aditi Rai i/b Economic Laws Practice, for the Respondent. CORAM: SOMASEKHAR SUNDARESAN, J. RESERVED ON: APRIL 9, 2026 PRONOUNCED ON: JUNE 25, 2026 JUDGEMENT: Context and Factual Background: 1. This is a Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, (“the Act”) impugning an Arbitral Award dated February 1, 2018, (“Impugned Award”) by which, a Learned Arbitral Tribunal Page 1 of 30 June 25, 2026 Rutuja Borse 1-JUDGE-CARBP-483-2018 -.doc has directed the Petitioner, Mahaguj Collieries Limited (“ Mahaguj”) to pay a sum of Rs. ~32.79 Crores to the Respondent, Adani Enterprises Limited (“Adani”), which as the lead member of a consortium along with PT Bara Jaya Utama, an Indonesian Company, had been appointed as a Mine Developer- cum-Operator (“MDO”) to mine coal from the Machhakata coal block in the State of Odisha (“Coal Block”). 2. The Impugned Award is a partial award passed, invoking Section 31(6) of the Act, in disposal of an application filed by Adani on behalf of the MDO under Section 17 of the Act seeking interim relief. Mahaguj is a 60:40 joint venture between the Maharashtra State Power Generation Company Limited and the Gujarat State Electricity Corporation Limited, the State-owned power generation companies in