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Bombay HC Quashed Rs.200 crores Arbitral Award against Thermax

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RCF had given contract of Rs.353.89 crores to Thermax on 3.3.2016. Clause 32.2(a) of the GCC provides that the contractor shall in no circumstances, be liable in respect of any indirect or consequential loss or loss of profit suffered by the the owner in connection with or arising out of performance of Work under Contract.

On 5.11.2019, RCF invoked arbitration that GTGs were defective and Thermax liable to repair the machines at its cost.  Thermax filed counter claim for refund of MAD deducted by RCF.

The Arbitrator had granted damages of Rs.173.72 crores to RCF.

HELD that the claim for damages on account of additional expenditure incurred on account of sourcing power from alternate sources was either an indirect or a consequential claim which was expressly waived by the parties and the Arbitrator being creature of contract, was barred from awarding the same.

Judgment dated 9.12.2025 of the High Court of Bombay in Commercial Arbitration Petition No.394 of 2024 of Thermax Limited  Vs.  Rashtriya Chemicals & Fertilizers Ltd with connected matter

 

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