{"id":233507,"date":"2020-08-07T10:00:26","date_gmt":"2020-08-07T04:30:26","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=233507"},"modified":"2020-08-14T11:42:27","modified_gmt":"2020-08-14T06:12:27","slug":"delhi-hc-sets-up-new-arbitral-proceedings-in-the-compensation-dispute-between-gmr-and-nhai","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/08\/07\/delhi-hc-sets-up-new-arbitral-proceedings-in-the-compensation-dispute-between-gmr-and-nhai\/","title":{"rendered":"Delhi HC sets up new arbitral proceedings in the compensation dispute between GMR and NHAI"},"content":{"rendered":"

Delhi High Court: <\/strong>C. Hari Shankar, J., addressed three different petitions between the same parties arising out of the award passed by Arbitral Tribunal, out of which, first petition was rejected, the second was passed and third stayed.<\/p>\n

GMR and NHAI were under a concession agreement to build a six-lane, 555 km Kishangarh-Udaipur-Ahmedabad Highway, which was terminated by GMR on the ground that there had been a \u201cchange in law\u201d, during the period of the agreement.<\/p>\n

GMR claimed that it was entitled to compensation, under Clauses 41.1 and 41.3 of the Concession Agreement. The learned Arbitral Tribunal held that there was a \u201cchange in law\u201d and that, <\/strong>GMR was entitled to compensation under Clauses 41.1 and 41.3. The majority award, however, permitted NHAI to take a fresh decision, on the claims of GMR, and assess the compensation to which it would be entitled. While the majority Award directed GMR to establish, before NHAI, its entitlement to compensation, under Clause 41.1 and 41.3 of the Concession Agreement, the dissenting Award(minority) opined that, instead of allowing NHAI to adjudicate thereon, the exercise ought to be delegated to an independent authority, such as a reputed firm of Chartered Accountants, or the like. The petitions, O.M.P. (COMM.) 426\/2020, and O.M.P. (COMM.) 425\/2020, were filed by NHAI and\u00a0 GMR respectively and were preferred under Section 34 of the Arbitration and Conciliation Act, 1996, to set aside the award by the Tribunal. O.M.P. (I) (COMM.) 92\/2020, was filed by GMR under Section 9 of Arbitration and Conciliation Act, 1996 essentially for the interim stay of operation of a letter demanding premium and, further, restraining GMR from taking any coercive steps, under the Concession Agreement.<\/p>\n

NHAI claimed to be aggrieved by the decision, of the Arbitral Tribunal, holding GMR to be entitled to compensation, and contended, in its petition [O.M.P. (COMM.) 426\/2020] that GMR was not entitled to any compensation on the ground of \u201cchange in law\u201d. GMR challenged [in O.M.P. (COMM.) 425\/2020] the majority Award, to the extent, it delegated the decision-making power, qua the claim, of GMR, to compensation, to NHAI. In other words, GMR sought to contend that the minority Award of Nayar, J., ought to be accepted.<\/p>\n

The Court first decided the petition,O.M.P. (COMM.) 426\/2020, and found the Arbitral Tribunal\u2019s Judgment to be in order. Court found that the tribunal\u2019s decision that change of circumstance did result in \u201cchange of law\u201d under Clause 48 of the Concession Agreement, the claim of GMR had to be assessed under Clauses 48.1 and 48.3 and GMR had to establish the \u201cfinancial burden\u201d to claim this compensation.<\/p>\n

Therefore, Court disposed of this petition. In O.M.P. (COMM.) 426\/2020, the court sided with the minority judgment of the Arbitral tribunal and assigned a new arbitrator who would be taking up the task from where the learned Arbitral Tribunal passed its Award. The Court decided that the Sole Arbitrator would have a time of six months from the date of presentation GMR\u2019s claims for compensation. Therefore, the petition was accepted. The remaining petition, O.M.P. (I) (COMM) 92\/2020, was on the issue of the premium to be paid to NHAI, which was stayed by the court in the \u201cthe interests of justice\u201d.\u00a0 Therefore, the third petition stayed.[GMR Hyderabad Vijayawada Expressways (P) Ltd. v. NHAI, 2020 SCC OnLine Del 923<\/b><\/a>, decided on 4-08-2020].<\/p>\n","protected":false},"excerpt":{"rendered":"

Delhi High Court: C. Hari Shankar, J., addressed three different petitions between the same parties arising out of the award passed by <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[41950,35672,2728,42972,42973,31683,30237,31135],"class_list":["post-233507","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-arbitral-proceedings","tag-arbitral-tribunal","tag-compensation","tag-concession-agreement","tag-gmr","tag-nhai","tag-premium","tag-sole-arbitrator"],"yoast_head":"\nDelhi HC sets up new arbitral proceedings in the compensation dispute between GMR and NHAI | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2020\/08\/07\/delhi-hc-sets-up-new-arbitral-proceedings-in-the-compensation-dispute-between-gmr-and-nhai\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Delhi HC sets up new arbitral proceedings in the compensation dispute between GMR and NHAI\" \/>\n<meta property=\"og:description\" content=\"Delhi High Court: C. 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