delhi high court
The Delhi High Court on Friday refused to interfere with the arbitration award in favor of Jindal Saw. The court upheld the arbitration award. Here, GAIL India was directed to pay over USD 7 million to Jindal Saw Limited. The case related to the delay in supply of pipelines by Saw Pipes Limited (now Jindal Saw Limited) to GAIL.
A bench of Delhi High Court Justice Vibhu Bakhru and Justice Sachin Dutta dismissed the appeal of Gas Authority of India Limited (GAIL). GAIL has moved the High Court against the arbitration decision handed down by the Single Judge on October 29. Meanwhile, the Delhi High Court dismissed the appeal as improper.
Court upholds 2002 arbitration award
The Delhi High Court has ruled in favor of Jindal Saw Limited in its long-running dispute with GAIL (India). The court upheld the 2002 arbitration award under which GAIL must now pay $7.2 million plus interest to Jindal Saw. The case is related to a natural gas pipeline project contract signed in 1994.
The tribunal, in its order passed in December 2002 and revised in March 2003, held that GAIL was liable for the delay caused by non-acceptance of supplies. He therefore accepted the claim brought by Saw Pipes Limited. He further said that GAIL had no authority to reduce the price payable for the pipeline due to delays at Saw Pipes.
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Thereafter, the court ordered GAIL to pay US$72,30,378.23, including interest and costs, to Saw Pipes. Earlier in November 2010, the single judge had upheld the award when GAIL challenged it under the Arbitration Act.