Punj Lloyd wins Rs 54-crore arbitration in case vs ONGC
MUMBAI: An arbitral tribunal has awarded Rs 54 crore to Punj LloydNSE -5.26 % in a dispute with state-run Oil & Natural Gas Corp. The award will likely help increase the attractiveness of the construction firm for financiers looking to fund litigations over its claims, in the hope of getting a slice of the recoveries.
Two out of three arbitrators consented to Punj Lloyd’s plea, seeking compensation for various expenses incurred in carrying out a pipeline contract at Hazira for ONGC. The panel, on a majority ruling, also accepted ONGC’s counter claims and asked Punj Lloyd to pay Rs 6 crore to the oil and gas company for an unutilised advance payment.
The Atul Punj-led engineering procurement and construction (EPC) company owes more than Rs 12,000 crore to lenders.
