Mumbai International Airport Ltd gets arbitration award against AAI

Mumbai International Airport Limited ('MIAL'), stepdown subsidiary of Adani Enterprises Limited ('Company') had invoked arbitration against Airports Authority of India ("AAI") seeking certain reliefs as eligible to it on account of the occurrence of Force Majeure event (Covid-19 period) under the Operation, Management and Development Agreement dated 4th April 2006 ("OMDA").

The Arbitral Tribunal has pronounced the Award on 6th January 2024, the key aspects of the Award being the following:

- MIAL is excused from making payment of Monthly Annual Fee ("MAF") for the period from 13th March 2020 to 28th February 2022 due to existence of force majeure. Accordingly, the amount of MAF paid by MIAL to AAI for the period 13th March 2020 to 28th February 2022 is ordered to be refunded along with interest.

- There shall be extension of the term of OMDA for the period which is equivalent to period from 13th March, 2020 to 28th February, 2022.

The award may be challenged by AAI within 3 months, in which case MIAL will appropriately defend the matter.

Shares of Adani Enterprises Limited was last trading in BSE at Rs. 2963.55 as compared to the previous close of Rs. 3006.70. The total number of shares traded during the day was 187111 in over 10681 trades.

The stock hit an intraday high of Rs. 3024.45 and intraday low of 2952.85. The net turnover during the day was Rs. 560119183.00.

Source : Equity Bulls

Keywords

AdaniEnterprises INE423A01024 MumbaiInternationalAirport ArbitrationAward AAI