Delhi HC upholds order for GAIL to pay $7.2 million to Jindal Saw

19 Nov 2024 CW Team

The Delhi High Court has upheld a 2002 arbitral award directing GAIL (India) to pay $7.2 million, along with interest, to Jindal Saw Ltd (formerly Saw Pipes Ltd) in a dispute concerning a global tender for the upgradation of the gas pipeline system. The court's Division Bench, comprising Justices Vibhu Bakhru and Sachin Datta, reaffirmed the arbitral tribunal’s decision that GAIL was responsible for delays in the delivery and should honor the agreed contract amount without deductions.

The original dispute arose after Saw Pipes failed to meet the delivery deadlines due to delays by GAIL, exacerbated by force majeure events. GAIL had withheld payments, citing delays, but the tribunal had ruled in favor of Saw Pipes. The court rejected GAIL’s appeal, stating that the tribunal's decision was reasonable, and upheld the payment order, including interest and costs.

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