Thermax Limited has won a crucial legal battle as the Bombay High Court set aside a Rs 250 crore arbitral award against the company, reversing a major financial liability and strengthening its position in ongoing litigation.
Thermax Limited has secured a significant legal win, with the Bombay High Court setting aside a major arbitral award that was originally passed against the company in June 2023. This landmark decision is expected to have positive implications for Thermax’s financial outlook and ongoing litigation strategy.
Notable Updates
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The Bombay High Court pronounced its judgement on December 9, 2025, overturning the Arbitral Award dated June 5, 2023, which had previously directed Thermax to pay substantial damages to a customer.
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The award, which stemmed from a dispute involving the breakdown of two Gas Turbo Generators, had initially imposed a liability of approximately Rs 250 crores on Thermax.
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The company had challenged the award, arguing that it was not based on proper appreciation of facts, and the High Court’s ruling now supports Thermax’s position.
Major Takeaways
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The reversal of the award removes a major financial burden and potential reputational risk for Thermax.
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The company can now focus on its core operations without the looming threat of a large payout.
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This legal victory may also influence other ongoing arbitration cases involving Thermax.
Important Points:
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The original arbitration was between Thermax Limited and Rashtriya Chemicals and Fertilizers Limited (RCF).
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The High Court’s decision is a critical win for corporate defendants seeking to challenge arbitral awards perceived as unjust or factually flawed.
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Thermax will continue to update stakeholders as further details emerge.
Sources: BSE Corporate Announcement, Thermax Limited Official Announcement, Bombay High Court Judgement, Indian Chemical News