DSK Legal successfully represented GMR Kamalanga Energy Ltd. (GKEL) before the Orissa High Court

DSK Legal successfully represented GMR Kamalanga Energy Ltd. (GKEL) before the Orissa High Court

DSK Legal advised, assisted, represented and appeared for GMR Kamalanga Energy Ltd. (GKEL) before the Orissa High Court in the proceedings as stated herein below.

An appeal was filed by GKEL titled “GMR Kamalanga Energy Ltd. vs. SEPCO Electric Power Construction Corporation (SEPCO)” [ARBA (ICA) No.1 of 2023] under Section 37 of the Arbitration and Conciliation Act, 1996 (“Act”) challenging the judgment passed in Section 34 of the Act whereby the Arbitral Award was upheld.

The Orissa High Court vide judgment dated 27.09.2023 has allowed GKEL’s Appeal under Section 37 of the Act thereby setting aside the Section 34 Judgment and the Arbitral Award.

Brief Background:

SEPCO had initiated arbitration proceedings against GKEL in respect of claims arising out of the contracts entered into between GKEL and SEPCO for construction and operation of a coal fired thermal power plant at Kamalanga village, Dhenkanal District, State of Orissa. The same is an International Commercial Arbitration (“ICA”). The Arbitral Tribunal had passed an award in November 2020 and directed GKEL to pay INR 1100 crores (approx.) to SEPCO.

GKEL had challenged such award in a petition filed under Section 34 of the Act before the High Court of Orissa. The matter was heard on admission / interim stay during April 2021 to September, 2021 (through VC). The High Court passed an order / judgment dated 17.06.2022 dismissing the Section 34 petition as being not maintainable.

The Section 37 Appeal was extensively argued on a day-to-day basis from 19 July 2023 to 02 August 2023 and the Orissa High Court has, vide its judgment dated 27 September 2023, set aside the Section 34 Judgment and the Arbitral Award.

Significance:

The Arbitral Award which has been passed in November 2020 directs GKEL to pay INR 1100 crores (approx.) to SEPCO. Further the Arbitral Award having been passed in an International Commercial Arbitration, the grounds for challenge to the Arbitral Award were extremely narrow and limited.

This judgment will hold a great significance in respect of the jurisprudence in the context of challenges to awards passed in International Commercial Arbitrations.

DSK Legal Team:

The matter was argued by Senior Counsels Mr. Ashok Parija, Mr. Ciccu Mukhopadhaya and Mr. S P Mishra.

The DSK Legal team which prepared the Section 37 Appeal, strategized the early hearing / disposal of the matter, appeared and briefed Senior Counsels comprised of Mr. Prashant Pakhiddey (Partner), Mr. Manav Gill (Principal Associate), Ms. Lakshmi Dwivedi (Senior Asociate), Byron Sequeira (Associate).

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