Kochhar & Co. Successfully Defends GAIL Against Nagarjuna’s Claim Of INR 2800 Crores
LIVELAW NEWS NETWORK
17 March 2023 10:41 AM IST
Kochhar & Co. advised as legal counsel to GAIL (India) Limited in the arbitration proceedings involving Nagarjuna Fertilizers and Chemicals Limited (“NFCL”). Kochhar & Co. acted for GAIL and successfully defended claim of INR 2800 crores by NFCL. The dispute arose out of Gas Transmission Agreement (“GTA”) and Gas Sales and Transmission Agreements (“GSTAs”) executed for supplying and delivering natural gas to NFCL’s fertilizer plants at Kakinada in Andhra Pradesh. Out of NFCL’s total monetary claims of INR 2800 crores, claims worth only INR 4 crores (0.2% of the total claims) were allowed. Cost of INR 1 crore was also granted in favour of GAIL.
The batch Arbitration involved a dispute due to an explosion and fire in GAIL’s pipeline on 27.06.2014 in Krishna Godavari Basin (“KG Basin’), which affected the supply on KG Basin pipelines including Tatipaka - Kakinada pipeline from which the gas was being supplied to NFCL under the GTA and GSTAs.
GAIL (India) Limited was represented by Senior Counsels, Sanjay Jain (ASG) and Sacchin Puri assisted by Rajat Gava from Kochhar & Co.
Nagarjuna Fertilizers and Chemicals Limited was represented by Senior Counsels, Sudhir Nandrajog and Akshay Makhija assisted by Divyam Agarwal from Agarwal Law Chamber.
