Shares of VA Tech Wabag surged more than 5% on Wednesday after the company announced that it will receive ₹140 crore in arbitration proceedings linked to the Telangana State Power Generation Corporation Ltd (TSGENCO) contract.
The arbitration was regarding a dispute out of the contract executed between TSGENCO and the consortium of Tecpro Systems Ltd, VA Tech Wabag and Gammon Engineers and Contractors (P) Ltd, the company said in a stock exchange filing.
Tecpro Systems, without the consent of the other consortium members, in violation of the consortium agreement, had invoked the arbitration against TSGENCO. The arbitration proceeding was against the consortium members, the company informed the bourses.
In the arbitration proceedings, the sole arbitrator Justice (Retd.) Madan B Lokur on Tuesday upheld the contention of TSGENCO, VA Tech Wabag and Gammon stating that the individual consortium member, (Tecpro Systems) cannot invoke the arbitration against the employer TSGENCO.
Rejecting the claims filed by Tecpro against TSGENCO, Lokur said that arbitration proceedings against WABAG and Gammon are not maintainable and no relief has been claimed against the two by Tecpro.
With this order, VA Tech Wabag, which was the consortium leader, is entitled to get ₹140 crore, which was under hold by TSGENCO due to pendency of the arbitration proceeding.
Lokur was appointed as a sole arbitrator by the Supreme Court of India.
On another note, last week, VA Tech Wabag-led consortium bagged an order worth 215 million Tunisian Dinars (about €63 million or approximately ₹555 crore) for a drinking water treatment plant in Tunisia.
Shares of VA Tech Wabag were trading 5.6% higher at ₹5529.30 apiece 11.35am.
(Edited by : Shloka Badkar)
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