Thermax wins high court appeal, arbitral award set aside

Thermax Limited has informed stock exchanges about a favorable ruling from the Bombay High Court, which set aside an Arbitral Award dated June 5, 2023. This award, stemming from an arbitration with a customer, had directed Thermax to repair and reinstate two Gas Turbo Generators at its own cost, pay ₹173.72 crores for the customer's additional expenditure on power, and ₹0.95 crore for arbitration costs. The initial financial impact of this award was estimated at approximately ₹250 crores for Thermax.

Following the High Court's decision, the claimant has been directed to refund the entire deposit amount of ₹218.45 crores, along with 6% interest per annum, that had been deposited by Thermax. The High Court has granted a four-week stay on the judgment's operation to allow the claimant to pursue appellate remedies.

This development marks a significant positive turn for Thermax, overturning a previous directive that carried substantial financial implications. The company will continue to update stock exchanges on any further material developments in this matter.