Government Contract Dispute

Power Transmission Line Builder

Background

An Indian EPC contractor (Contracting Co) entered a dispute and initiated arbitration with a State Government of Odisha undertaking (“GOU”) because of the GOU short closing three contracts. During the course of proceedings, Contracting Co. defaulted on bank borrowings which led to the appointment of a liquidator.

Our Role

LitiCap entered after commencement of arbitration which had been through significant delays in proceedings due to a weak litigation strategy.

LitiCap redesigned the dispute resolution strategy.

The most critical step was to successfully secure any dues from arbitration from the purview of liquidation. LitiCap managed to identify and enforce legal entitlements that have completely eliminated any claim on arbitration and related dues from the Liquidator.
LitiCap has taken over management of the entire arbitration, bringing new relevant legal representation with experience in similar arbitration, focusing on strengthening basis of claims.
The Bank Creditor is a PSU, and payment defaults occurred due to non-payment on GOU’s part. LitiCap proceeded to arbitration with the bank creditor over recovery, to arrive at settlement on Contracting Co’s preferred terms, while arbitration against GOU continues to move towards a favourable conclusion.

Current Status

Application for extension of arbitration time is moved to Odisha High Court and a hearing is awaited.