New Delhi: In a relief to GAIL (India) Ltd, the Delhi High Court on Monday set aside an arbitral award against it saying Hindustan Construction Corporation (HCC), which was assigned a job by the PSU major, was not "coerced" to give a no-claim certificate (NCC) at the time of final payment.
"The Arbitrator failed to notice that HCC had not issued the NCC under coercion or duress. The NCC issued by HCC to GAIL constituted 'accord and satisfaction' of HCC's claims and there was, therefore, no arbitrable dispute," Justice S Muralidhar said while allowing the plea of the gas major.
"This court sets aside the impugned award dated August 11, 2003. The petition is allowed with costs of Rs 5,000 which should be paid by HCC to GAIL within a period of four weeks from today," Justice Muralidhar said.
The PSU had moved the court challenging the award of an arbitrator which asked it to pay more to HCC despite the final settlement of the claim.
GAIL, in 1994, awarded HCC a contract for up-gradation of Auraiya Gas Compressor Station for HBJ Pipeline.
First Published: Monday, January 9, 2012, 20:40