Transport of coal: Arbitral tribunal passes over 2,000 cr award in favour of Jindal ITF Ltd

An arbitral tribunal has passed an award amounting to over Rs 2,000 crore in favour of Jindal ITF Ltd in a case pertaining to transport of coal to Farakka thermal power plant of the state-run power producer NTPC.

The final award was pronounced by a bench comprising Justice Vikramajit Sen (retired), Justice B P Singh (retired) and Justice Anil Kumar (retired).

The NTPC had signed a tripartite agreement in 2011 with Inland Water Authority of India (IWAI) and Jindal ITF for transportation of coal to its 2,100-MW power plant located at Farakka, West Bengal, through inland waterways.

It had assured Jindal ITF that a minimum of 3 million metric tonnes (MMT) of coal would be transported per year through the latter and that if NTPC fails to do so, it would pay Jindal ITF transportation fee for 90 per cent of 3MMT of coal.

After taking note of the pleadings of the parties and materials on record including the evidence, the tribunal said that it was of the view that the NTPC was more responsible for the delays relating to the transportation of coal.

"NTPC's own pleadings and witnesses admitted that there was delay on the part of NTPC. NTPC cannot disown the deposition of his own witness who categorically admitted that the delay was on the part of NTPC. On the preponderance of the probabilities on considering the pleadings documents and evidence, the inevitable inferences that it is the NTPC which is liable for the delays and the consequences thereof which cannot be palmed off to JITF," the tribunal said.

It also dismissed the counter claim of the NTPC, saying it was devoid of merits and as it has breached the contract by not providing minimum quantity of coal.

Jindal ITF was represented by advocate Manoj K Singh and his team.