RattanIndia Power Appeals Against Order Upholding ₹1.15 Billion Payout to BHEL

RattanIndia Power Ltd. on Friday moved the division bench of the Delhi High Court against a March ruling by a single judge that upheld a 2017 interim arbitral award directing the company to pay ₹1.15 billion to Bharat Heavy Electricals Ltd. The next hearing is scheduled for May 2.

In 2010, BHEL received a letter of award to design, engineer, manufacture, inspect, and test a boiler turbine generator for RattanIndia Power’s 5x270-megawatt thermal power project in Amravati, Maharashtra. The two parties signed a supply contract and a services contract in 2011.

RattanIndia Power paid an advance of ₹1.43 billion to BHEL, secured by a bank guarantee, which was to be adjusted against future supplies. Disputes later emerged as BHEL alleged that RattanIndia Power defaulted on payments for plant, equipment, and services, and raised concerns about the company’s financial position.

In 2013, RattanIndia Power suspended supplies unilaterally—a move BHEL did not accept. BHEL terminated the contract in 2015. RattanIndia Power alleged BHEL breached the contract by failing to deliver equipment in sequence, calling it “dumping,” and argued that this made BHEL ineligible for payment.

The matter went to arbitration. BHEL cited meeting minutes showing RattanIndia Power had acknowledged dues of ₹1.15 billion related to the Amravati project and ₹630 million for another project in Nashik. In March, the single judge ruled that RattanIndia Power had failed to establish grounds for intervention under Section 34 of the Arbitration and Conciliation Act, 1996.