Image Source: IPO Base
VL Infraprojects Ltd, a fast-growing infrastructure development firm based in Ahmedabad, has secured a favorable arbitration award in a long-standing contractual dispute, marking a significant legal and financial win. The award, issued by the Delhi International Arbitration Centre (DIAC), affirms VL Infraprojects’ claims related to delayed payments and cost escalations in a public infrastructure project.
The ruling is expected to unlock pending dues and interest payments, potentially improving the company’s working capital position and enabling faster execution of ongoing projects. Legal experts note that the award strengthens VLIL’s credibility in future government and EPC tenders, especially in the water supply and pipeline segments where the company has a strong presence.
The arbitration award follows a series of hearings and submissions, with the Delhi High Court recently acknowledging the enforceability of the decision. VL Infraprojects is now preparing to initiate recovery proceedings and may also explore monetization of the award through structured receivables.
Key Highlights:
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Awarding Body: Delhi International Arbitration Centre (DIAC)
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Nature of Dispute: Delayed payments and cost escalations
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Impact: Boost to cash flows and project execution
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Legal Status: Enforceable under Delhi High Court oversight
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Strategic Edge: Enhances credibility in EPC and infra bids
Source: Indian Kanoon – Delhi HC Order on VL Infraprojects Arbitration
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