MADHYA BHARAT POWER CORPORATION LIMITED vs VOITH HYDRO PRIVATE LIMITED

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment Reserved on: 9th March, 2026 Judgment pronounced on: 26th May, 2026 + O.M.P. (COMM) 452/2019 & I.A. 14761/2019 MADHYA BHARAT POWER CORPORATION LIMITED .....Petitioner Through: Mr. Ratan K. Singh, Senior Advocate with Mr. Prateek Khandelwal and Mr. Anand Murthi Rao, Advocates. Mr. M. Rajshekhar, DGM (Legal). Versus VOITH HYDRO PRIVATE LIMITED .....Respondent Through: Mr. Raj Shekhar Rao, Senior Advocate with Mr. Omar Ahmad, Mr. Vikram Shah, Ms. Simarjeet and Mr. Ritik Kumar Rath, Advocates CORAM: HON’BLE MR. JUSTICE AMIT BANSAL JUDGMENT AMIT BANSAL, J. 1. The present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (‘Act’) seeking setting aside of the Award dated 31st July, 2019 passed by the Arbitral Tribunal (‘Award’). 2. The petitioner (respondent in the arbitration proceedings) shall hereinafter be referred to as ‘Madhya Bharat’ or ‘the Employer’ and the respondent (claimant in the arbitration proceedings) shall hereinafter be referred to as ‘Voith Hydro’ or ‘the Contractor’. Signature Not Verified Signed By:DHARMENDER SINGH O.M.P. (COMM) 452/2019 Page 1 of 30 Signing Date:26.05.2026 13:02:53 FACTUAL BACKGROUND 3. Brief facts relevant for the adjudication of present dispute are as follows. 4. Madhya Bharat entered into a Memorandum of Understanding with the Government of Sikkim by which Rongnichu Hydro Project (‘RHEP’) in Sikkim was allotted to Madhya Bharat. 5. Madhya Bharat had split RHEP into five different packages, one of which was for Electro Mechanical Works (‘E&M’). Tender was floated by Madhya Bharat for E&M in respect of which Voith Hydro submitted its bid. A Letter of Intent was issued to Voith Hydro on 21st June, 2011. Thereafter, Voith Hydro was awarded the Contrac