Award of Rs 290 Cr passed by Arbitral Tribunal against J&K Govt stayed

STATE TIMES NEWS

JAMMU: Giving a major relief to J&K Government, the Principal District Judge Kishtwar has stayed award of Rs 290 crore passed by Arbitral Tribunal against the Govt. According to case, on June 18, 2008 Jammu and Kashmir State Power Development Corporation Limited (JKSPDCL) and Government of Jammu & Kashmir invited a global tender for developing 690 MW (later 850 MW) Ratle Hydro Electric project on Chenab river near Drabshalla village of Kishtwar, J&K on ‘Build, Operate, Own and Transfer (BOOT) basis. The GVK was declared as successful bidder and was awarded 690 MW Ratle Hydro electric project on tariff based competitive bidding by JKSPDCL. During course of execution of the project, certain disputes arose between both parties. As per agreement entered into by both the parties, they decided to resolve the same through Arbitration. The Arbitral Tribunal after looking into the matter passed an award against JKSPDCL to the tune of Rs 290 crore along with interest. Being aggrieved of same, the JKSPDCL filed an application under Section 34 of Arbitration and Conciliation Act 1997 before the Court of Learned District Judge Kishtwar and contended before District Judge that finding is perverse and contrary to facts and Law. Additional Advocate General Amit Gupta appeared on behalf of JKSPDCL and after hearing the AAG at length, the District Judge Kishtwar stayed award passed by the Arbitral Tribunal. It is a huge success for Government of J&K wherein an award passed against JKSPDCL to the tune of Rs. 290 crore along with interest has been stayed by the District Judge Kishtwar.