The dispute arose from a 2011 tripartite agreement between NTPC, the Inland Waterways Authority of India (IWAI) and JITF for transportation of imported coal through inland waterways to NTPC’s Farakka Thermal Power Plant.
In an order passed in January 2019, the arbitral tribunal awarded a total of nearly ₹1,889.32 to JITF for alleged delays and deviations and shortfalls in NTPC’s minimum guaranteed quantity (MGQ) of coal.
JITF was awarded ₹424.08 crore under claim 1 towards delays and deviations attributable to NTPC.
The tribunal further awarded ₹158.50 crore and ₹197.81 crore under claims 3 and 3A towards shortfalls in NTPC’s minimum guaranteed quantity (MGQ) of coal. The tribunal also said that NTPC’s termination of the agreement was illegal. It treated the future MGQ payable under the contract as compensation.
The single-judge of the High Court set aside the tribunal’s findings on these claims.
The matter then came before the division bench.