Voltas Limited has provided an important update on its ongoing material litigation involving a joint venture between OHL International, Spain, and Contrack (Cyprus) Limited (OHLC JV). The dispute, which primarily pertains to claims and counterclaims related to terminated contracts and bank guarantees, has seen recent developments in the Investment and Trade Court of Doha, Qatar.
The litigation involves Voltas attempting to recover QAR 771.632 million (approximately Rs 1,754.69 crore) for work done, variations, and delays. However, OHLC JV counterclaimed a substantial Rs 7,384.83 crore, including damages worth Rs 6,409 crore.
Key developments:
- The Qatar Court recently instructed the encashment of two bank guarantees issued by Voltas, amounting to QAR 166.720 million (approximately Rs 402 crore).
- Voltas’ claims have been rejected on the grounds that the company has been overpaid after considering repair costs.
- Counterclaims by OHLC JV have also been dismissed.
- Voltas is in discussions with its local legal advisors to file an appeal against the recent order.
The company is closely monitoring the situation and has plans to challenge the ruling, citing anomalies in the court’s order.
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