Va Tech Wabag

VA Tech Wabag notified about a recent development in an arbitration case related to a contract with the Telangana State Power Generation Corporation Limited (TSGENCO).

Here’s what happened:

1. There was an arbitration proceeding led by an arbitrator named Hon’ble Justice (Retd.) Madan B. Lokur. This arbitrator was appointed by the Supreme Court of India.
2. The arbitrator’s decision favored TSGENCO, VA Tech Wabag Limited (WABAG), and Gammon Engineers and Contractors (P) Limited (GAMMON). They argued that Tecpro Systems Limited (TECPRO), another consortium member in the contract, couldn’t initiate arbitration against TSGENCO without the agreement of the other consortium members.
3. The arbitrator ruled that TECPRO’s claims against TSGENCO were rejected, and the arbitration proceedings against WABAG and GAMMON were not allowed. TECPRO didn’t claim any relief against WABAG or GAMMON.
4. This arbitration was about a dispute that arose from the contract between TSGENCO and a consortium of TECPRO, WABAG, and GAMMON. TECPRO initiated the arbitration without the consent of the other consortium members, which violated their consortium agreement.
5. As a result of this decision, WABAG, as the leader of the consortium, is entitled to receive around INR 140 Crores (Indian Rupees 140 Crores) that was held by TSGENCO during the arbitration proceedings.