MBL Infrastructure Secures Rs 77.85 Crore Arbitration Award in Uttarakhand Road Project

MBL Infrastructure Ltd , a civil engineering infrastructure specialist, has received a favorable court order regarding a significant arbitration award for a road project in Uttarakhand. The Commercial Court in Dehradun has directed the Public Works Department (PWD) of Uttarakhand to deposit the entire arbitration award amount of Rs 77.85 crore to MBL Infrastructure Ltd.

Project Details

The arbitration award relates to a road project titled "Improvement/Strengthening of 15 roads in District - Almora (Package C-4), Phase-III" in Uttarakhand. This project underscores MBL Infrastructure's involvement in crucial infrastructure development in the hilly regions of India.

Arbitration Award

The original arbitration award was dated January 31, 2022, with subsequent corrections and interpretations made on February 14, 2022. As per the court order, the arbitration award sum stood at Rs 77.85 crore.

Interest Accrual

Notably, interest on the award amount continues to accrue at a rate of 8.90% per annum until the payment is made. This interest rate is 2% higher than the current rate of interest prevalent on the date of the award, as per Section 31(7) of the Arbitration and Conciliation Act 1996.

Court Order

The Commercial Court's order directs the Public Works Department of Uttarakhand to deposit the entire amount of the arbitration award. This decision marks a significant victory for MBL Infrastructure in its pursuit of due compensation for the completed project.

Company Background

MBL Infrastructure Ltd, established in 1995 and listed on stock exchanges since 2010, specializes in executing civil engineering infrastructure projects. The company has been instrumental in creating and improving road infrastructure across various regions in India.

This latest development in the arbitration process highlights the company's commitment to resolving project-related disputes and securing rightful compensation for its completed works. As infrastructure development continues to be a key focus area for India's growth, companies like MBL Infrastructure play a crucial role in executing these vital projects.

Investors and stakeholders will likely view this arbitration award positively, as it strengthens the company's financial position and demonstrates its ability to successfully navigate complex project-related challenges.