Goemkarponn Desk
PANAJI: In a major relief for the state government, the High Court of Bombay at Goa has reduced the award from Rs 119 crores to Rs 70 crores in the arbitration case with Reliance Power.
In its application filed under section 9 of the Arbitration and Conciliation Act, 1996, Reliance Infrastructure Limited has sought that the Court direct the State government to pay an amount of Rs 278.29 crore with interest totaling to Rs 292 crore, which it was awarded by the Arbitration Tribunal in its award on 16 February 2018.
The tribunal had ordered payment of interest at 15 per cent per annum on the total award amount if the government fails to pay the entire award amount by 15 April 2018.
Reliance Infrastructure had won an arbitration award of Rs 292 crore against the government of Goa in a case relating to non-payment of dues for electricity supplied by the former. The matter went into arbitration when Goa delayed payments to Reliance Infrastructure for power supplied from its 48 megawatt-Goa Power Plant in Sancoale.
The tribunal had also ordered payment of interest at 15 per cent per annum on the total award amount if Goa fails to pay the entire award amount by the deadline. The Arbitration Tribunal, on February 16, 2018 ordered the government of Goa to pay Rs 292 crore to Reliance Infrastructure by April 15.
The company had then said that the total outstanding dues, along with interest, as on October 31, 2017 amounts to Rs 278 crore. The tribunal has also awarded Reliance Infrastructure interest from October 2017 till the date of the award, which would be another Rs 14 crore.