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Legal Victory: Cyril Amarchand Mangaldas Triumphs in SEIL Energy vs. NCC Arbitration Battle

In a resounding legal triumph, Cyril Amarchand Mangaldas, a leading legal firm, successfully represented SEIL Energy Private Limited (SEIL) in a high-stakes arbitration against NCC Limited (NCC). The arbitration proceedings centered on disputes stemming from extensive Engineering, Procurement, and Construction (EPC) contracts valued at Rs 2557 crore. The arbitral tribunal rendered a significant verdict, granting claims amounting to Rs 700 crore against NCC, while acknowledging claims of Rs 101 crore against SEIL. This landmark ruling delved into critical legal intricacies, particularly concerning extension of time claims and the imposition of liquidated damages, especially in cases of alleged concurrent delays involving both the employer and the contractor.
The Expert Legal Guidance

Guided and advised by Cyril Amarchand Mangaldas's proficient Disputes Practice, SEIL Energy Private Limited (SEIL) found strong legal representation. Heading this critical legal matter was Kapil Arora, a distinguished Partner, supported by a proficient team comprising Manjula Baxla, Principal Associate; Aditi Tambi, Principal Associate; Palak Nagar, Senior Associate; and Prashasthi Bhat, Associate.

Unpacking the Arbitration Proceedings

The genesis of this arbitration can be traced back to NCC, the contractor, initiating legal action against SEIL, its client. The disputes emanated from the comprehensive EPC contracts related to the construction of a 1320 MW thermal power plant in Nellore, Andhra Pradesh. NCC raised substantial claims, aggregating to about Rs 1557 crore. However, the Arbitration Tribunal rejected claims amounting to approximately Rs 1456 crore, ultimately awarding Rs 101 crores in favor of NCC, inclusive of interest and associated costs.

SEIL Energy Private Limited (SEIL), not one to be passive in its defense, responded with counter-claims totaling Rs 1000 crores along with USD 9.04 million. Remarkably, the arbitration tribunal acknowledged SEIL's counter-claims, granting a substantial portion of about Rs 700 crore.

An Important Award

The culmination of this arduous legal battle was marked by the arbitration tribunal's decisive award on September 14, 2023. This award represents a significant milestone in the legal landscape, underscoring the importance of expert legal representation and strategic defense.

This victory not only affirms the prowess of Cyril Amarchand Mangaldas in navigating complex arbitration proceedings but also establishes SEIL Energy Private Limited's resilience in defending its interests.

This successful arbitration outcome is a testament to the dedication and legal acumen of Cyril Amarchand Mangaldas, reinforcing its position as a preeminent legal advisor in the Indian business landscape.


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