Himachal lost the arbitration case, Court ordered to refund Rs 34.48 Cr to the company
Himachal Pradesh lost another arbitration case in the Himachal Pradesh High court in a matter of 36 megawatts Chanju-1 Hydro Power Project in Chamba arbitrator has ordered the government to return Rs 34 crore 48 lakhs 77 thousand 286 to the company that set up the project along with six percent interest.
Acting as Arbitrator Former Chief Justice of the State High Court and former Judge of the Supreme Court Kurian Joseph asked the government to pay this amount in the time period of four months. According to the counsel for the defense decision to return the award money was given on the ground of a protest made by the local people during the construction of this project.
The project proponent alleged that construction had to be stopped in lieu of the delay in the project and the financial loss, and he should be given the said amount as compensation. The counsel of the company pleaded before the arbitration that the local people were opposing the allotment of land for the construction of this project.
It is worthwhile to mention here that several cases are in arbitration and courts against the government if it has to return this amount along with the interest of upfront money and compensation in all the cases it would lose thousands of Crores.
Earlier, Himachal Pradesh High Court also directed the government in a similar petition of Adani Power to return the upfront money of Rs 280 crore along with interest.
Several cases are pending arbitration in the courts including the Duggar project, the Sally project, and Uhl project bin which state is either got adverse order or in the process of losing continue.
Interesting thing is that even private companies are also responsible for delaying the implementation of the projects, neither the government keeps an account of the loss caused to the government nor do the companies give any compensation to the government. In such a situation, there is definitely a loophole somewhere needed to be plugged in.
