The Supreme Court on Monday rejected the Delhi Transport Corp's appeal against a Delhi High Court order asking it to pay Tata Motors 18% interest per annum on the arbitration award of Rs 327 crore that the latter won in 2017.
During the hearing, a Bench led by Chief Justice DY Chandrachud observed that “where are they (Tata Motors) going to run away. They are not fly-by-night operators.”
The HC had in August held that Tata Motors was entitled to the principal amount of Rs 327 crore of the arbitral award and also 18% interest till realisation.
DTC argued that the HC had disposed of the Tata Motor's execution petition by granting the latter “interest upon interest on the amount awarded by the impugned award which is contrary to law and the terms of the contract between the parties.”
The HC had completely ignored the fact DTC had already deposited Rs 340 crore which is much more than the awarded amount before the court, and the money since also been released to Tata Motors against the bank guarantee, senior counsel Monika Gusain argued.
Tata Motors, which was represented by senior counsel NK Kaul, opposed DTC’s appeal.
Tata Motors was a successful bidder in the tenders floated by the DTC for manufacture, supply, commissioning and comprehensive maintenance of the low floor CNG Buses. Agreement was signed for 1219 Non-AC Buses, 813 AC Buses with comprehensive AMC upto 7,50,000 km of operation or 12 years whichever is later. However, a dispute arose between the parties over various issues, thus leading to setting up of an arbitral tribunal, the appeal filed through counsel Asha Gopalan Nair stated.
In August 2017, the arbitral tribunal awarded an amount of Rs 296.16 crore with interest of Rs 30.53 lakh. While DTC appealed against the arbitration award, Tata Motors sought enforcement of the arbitral award. The DTC’s petition is at the stage of final arguments in the HC and its stay application is pending before the SC.
During the hearing, a Bench led by Chief Justice DY Chandrachud observed that “where are they (Tata Motors) going to run away. They are not fly-by-night operators.”
The HC had in August held that Tata Motors was entitled to the principal amount of Rs 327 crore of the arbitral award and also 18% interest till realisation.
DTC argued that the HC had disposed of the Tata Motor's execution petition by granting the latter “interest upon interest on the amount awarded by the impugned award which is contrary to law and the terms of the contract between the parties.”
The HC had completely ignored the fact DTC had already deposited Rs 340 crore which is much more than the awarded amount before the court, and the money since also been released to Tata Motors against the bank guarantee, senior counsel Monika Gusain argued.
Tata Motors, which was represented by senior counsel NK Kaul, opposed DTC’s appeal.
Tata Motors was a successful bidder in the tenders floated by the DTC for manufacture, supply, commissioning and comprehensive maintenance of the low floor CNG Buses. Agreement was signed for 1219 Non-AC Buses, 813 AC Buses with comprehensive AMC upto 7,50,000 km of operation or 12 years whichever is later. However, a dispute arose between the parties over various issues, thus leading to setting up of an arbitral tribunal, the appeal filed through counsel Asha Gopalan Nair stated.
In August 2017, the arbitral tribunal awarded an amount of Rs 296.16 crore with interest of Rs 30.53 lakh. While DTC appealed against the arbitration award, Tata Motors sought enforcement of the arbitral award. The DTC’s petition is at the stage of final arguments in the HC and its stay application is pending before the SC.
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