Now Reading: Afcons shares rise 4% after Rs 335.5 crore arbitration award
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Afcons shares rise 4% after Rs 335.5 crore arbitration award
Afcons Infrastructure shares rose as much as 4.40% to Rs 290.90 on Tuesday after the company received a favourable arbitral award worth Rs 335.50 crore in its dispute with the Uttar Pradesh…
Afcons Infrastructure shares rose as much as 4.40% to Rs 290.90 on Tuesday after the company received a favourable arbitral award worth Rs 335.50 crore in its dispute with the Uttar Pradesh Expressways Industrial Development Authority.
The award, passed on August 24, 2026, includes Rs 152.25 crore in principal and Rs 183.25 crore in pre-award and pendente lite interest. The interest was calculated at the SBI Base Rate with quarterly rests from May 1, 2019, to August 24, 2026. Afcons said the award could improve its financial position, but payment depends on UPEIDA not challenging it within the period allowed by law.
Indian Opinion Analysis
An arbitral award does not automatically become cash in hand. Under the Arbitration and Conciliation Act, 1996, a party can seek to set aside an award under Section 34, subject to the statutory limitation period. If no challenge succeeds, enforcement proceeds through the courts much like a civil decree. For Afcons, the principal amount is the direct contractual recovery, while interest forms more than half of the announced award and may continue to affect the eventual receipt depending on legal proceedings. UPEIDA’s decision within the permitted challenge period will determine when the amount can be recognised and collected.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
