Thermax directed to repair, reinstate Gas Turbo Generator at the customer’s plant at own expense
The Arbitrator dismissed other claims and counter claims made in the matter. Thus, the award would have an estimated total financial impact of approximately ₹250 crore on Thermax, it added.
PremiumThermax Ltd, the energy and environment solutions company, has been directed by an Arbitral Tribunal to repair and reinstate two Gas Turbo Generator (GTGs) at a customer’s plant at the company’s own cost and expenses.
The order is estimated to have a financial impact of ₹250 crore on Thermax, the company said.
“The Arbitrator has directed the Company to repair and reinstate both the GTGs at Customer’s plant at the Company’s own cost and expenses under the defect liability clause. The Arbitrator also allowed the customer’s claim on additional expenditure on power and directed the company to pay ₹173.72 crore with interest along with a sum of ₹95 lakh as arbitration cost to the Customer," Thermax said in an exchange filing.
The Arbitrator dismissed other claims and counter claims made in the matter. Thus, the award would have an estimated total financial impact of approximately ₹250 crore on Thermax, it added.
The company also said it has been advised that the order is not based on proper appreciation of facts and is in the process of challenging the award before the appropriate appellate authority.
At 10:30 am, the shares of Thermax were trading 1.78% lower at ₹2,332.10 apeice on the BSE.
Catch Live Market Updates here
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
