SPML Infra Ltd. wins Rs. 475 million arbitration award against Jharkhand Urja Utpadan Nigam Ltd.The leading infrastructure development Company, SPML Infra Limited has won Rs. 475 million Arbitration Award Against Jharkhand Urja Utpadan Nigam Ltd. The Arbitration order was passed by Sole Arbitrator, Hon'ble Mr. Justice D.G.R. Patnaik (Retd. Judge, Jharkhand High Court), and Jharkhand Urja Utpadan Nigam Ltd. was asked to pay it immediately. Jharkhand Urja Utpadan Nigam Ltd. will have to pay interest @18% on the amount if it is not paid immediately as per award.
The need for the arbitration arose due to cost over-run during construction, delayed payment, and additional expenses incurred due to delay and claims of the company were upheld by the Arbitrator. The proceedings of the arbitration were held for five years starting 2013 and all pleadings and arguments by both the parties were completed in 36 sittings.
Mr. Subhash Sethi, Chairman, SPML Infra commented, "Construction companies face difficulties during project execution due to a combination of issues from unforeseen changes in land conditions to materials price increases, non-approval of drawing or inordinate delay in approval, land and environmental clearances and payment delays etc. All these factors add risk and can ultimately lead to claim and arbitration. We are happy that our legitimate claims have been upheld in the arbitration. The arbitration award is encouraging and will help us strengthening our financials."
Shares of SPML Infra Limited was last trading in BSE at Rs.51.6 as compared to the previous close of Rs. 55.15. The total number of shares traded during the day was 8994 in over 116 trades.
The stock hit an intraday high of Rs. 56.4 and intraday low of 51.15. The net turnover during the day was Rs. 479409. |
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