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Madras High CourtArb O.P(COM.DIV.)/255/2021dismissed as settled out of court

M/S Bharat Heavy Electricals Ltd v. Era Infra Engineering Ltd, Represented By Its Resolution Professional

2026-03-26Honourable Mr Justice Senthilkumar Ramamoorthy6 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 26-03-2026

CORAM

THE HON'BLE MR JUSTICE SENTHILKUMAR RAMAMOORTHY Arb O.P(COM.DIV.) No. 255 of 2021, Arb O.P(COM.DIV.) No. 432 of 2023 & & A.Nos.4462 of 2021 in Arb.O.P.(Com Div) No.255 of 2021 & A.No.762 of 2024 in Arb.O.P(Com Div) No.72 of 2024 M/s. Bharat Heavy Electricals Ltd Power Sector Southern Region, Tek-Towers, No.11, Old Mahabalipuram Road, Okkiyam Thoraipakkam, Chennai 600 097 ..Petitioner(s) Vs M/s.Era Infra Engineering Ltd, Represented by its Resolution Professional Having its head office at C-56/41, Sector 62, Noida, Uttar Pradesh 201 303 ..Respondent(s) Arb O.P(COM.DIV.) No. 432 of 2023 M/s.Era Infra Engineering Ltd, Head office at C-56/41,Sector-62, Noida, Uttar, Pradesh-201303, Rep. by Rajiv Chaleraborty, Resolution Professional. ...Petitioner (s) Vs Bharat Heavy Electricals Limited Power Sector Southern Region, 690, Anna Salai, Nandanam, Chennai-600 035

...Respondent(s)

Bharat Heavy Electricals Limited Power Sector Southern Region, BHEL Integrated Office Complex, TNEB Road, Pallikaranai, Chennai-600 100, Rep. by its Executive Director. Petitioner(s) Vs M/s.Era Infra Engineering Limited Through its Authorized Representative, Having its Head Office at C-56/41, Sector 62, Noida, Uttar Pradesh-201 303. Respondent(s) PRAYER in Arb.O.P.(Com Div) No.255 of 2021: Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 praying (a) to set aide the Award dt 01.03.2021 passed by the Arbitral Tribunal to the extent that claim Nos.1,3,4,5,6,7,8,9,10,11,12,13,14,15,16 and 17 filed by the Respondent (Claimant) have been allowed and all the Petitioner's (Respondent's) counter claims have been disallowed and (b) to direct the Respondent to pay the costs. PRAYER in Arb.O.P.(Com Div) No.

432 of 2023: Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 praying that the impugned award dt 01.03.2021 passed by the Honble Justice (Retired) Shri Satish K.Agnihotri, Sole Arbitrator be set aside and quash the findings made by the Ld Arbitrator pertaining to Claim Nos.2(partial), 3,5,7,8,9,10,11 (partial), 12 to 16 for the rejection and (b) to direct the Respondent to pay the costs. PRAYER in Arb O.P(COM.DIV.) No.

(a) to set aside the award dt.20.09.2023 passed by the Arbitral Tribunal rejecting the claims of the petitioner and allowing the claims of the respondent and (b)to direct the respondent to pay the costs PRAYER in A.No.4462 of 2021 in Arb.O.P.(Com Div) No.255 of 2021: Judges summons filed under Order XIV Rule 8 of O.S.rules, read with Section 36(3) of the Arbitration and Conciliation Act, 1996 praying to grant an order of interims stay of the award dated 01.03.2021 pending disposal of the present petition.

PRAYER in A.No.762 of 2024 in Arb.O.P.(Com Div) No.72 of 2024: Judges summons filed under Order XIV Rule 8 of O.S.rules, read with Section 36(3) of the Arbitration and Conciliation Act, 1996 praying to grant an order of interims stay of the award dated 01.03.2021 pending disposal of the present petition.

In Arb.O.P.(Com Div)Nos.255/2021 & 72 of 2024 and A.Nos.4462 of & A.No.762 of 2024 For Petitioner(s):

Ms. Mithreyi Kasthurirangan for M/s.K.Harishankar For Respondent(s):

Ms. Ashwini Vaidialingam In Arb.O.P.(Com Div) No.432/2023 For Petitioner(s) Ms. Ashwini Vaidialingam For Respondent(s) Ms. Mithreyi Kasthurirangan for M/s.K.Harishankar

ORDER

Parties have reached a settlement and executed settlement agreement dated 13.03.2026. The settlement agreements provide as under: (i) payment of a sum of Rs.33.25 crore by Bharat Heavy Electricals Limited (BHEL) to Era Infra Engineering Limited in full and final settlement of all claims relating to the contract for civil, structural and architectural works for main plant at 2x250 MW TS-II extension, Neyveli Lignite Corporate (NLC), Neyveli, Tamil Nadu;

(ii) Payment of a sum of Rs.15.23 crore by BHEL to Era Infra Engineering Limited in full and final settlement in respect of general civil work for main plant & Aux plant buildings for unit 1 of 2x600 MW NCTPS Stage II, at Attipattu, Chennai;

(iii) The payments mentioned above shall be made within 15 days of receipt of the web copy of this order or on or before 15.04.2026, whichever is later; and (iv) Return of bank guarantee for Rs.2.31 crore by BHEL to Era Infra Engineering Limited pertaining to the North Chennai Project.

2. Parties have also requested that the petitions be dismissed in view of the settlement as settled out of Court with refund of full court fee to the respective petitioner.

3. Acceding to said request , these petitions are dismissed as settled out of Court and the Registry is directed to refund full court fee to the respective petitioner in these three petitions. Consequently, connected applications are closed.

26-03-2026 KAL Note: Issue Order copy on 27.03.2026

SENTHILKUMAR RAMAMOORTHY, J.

KAL Arb O.P(COM.DIV.) No. 255 of 2021, Arb O.P(COM.DIV.) No. 432 of 2023 & & A.Nos.4462 of 2021 in Arb.O.P.(Com Div) No.255 of 2021 & A.No.762 of 2024 in Arb.O.P(Com Div) No.72 of 2024 26-03-2026