The International Chamber of Commerce (ICC), Paris has ruled in the favor of National Transmission and Despatch Company (NTDC) in an arbitration initiated by the Iranian company (GAM ARAK Ind Co).
Iranian company, GAM ARAK had initiated the arbitration in early 2017. The dispute arose out of a contract between the Iranian company and the NTDC executed in February 2011 for the design, supply, installation, testing, and commissioning of 500 kV Guddu-Multan third circuit at Rahim Yar Khan 500kV substation. The NTDC terminated the contract due to persistent delays on the part of the Iranian contractor and the project was eventually completed by another contractor.
On observing all the facts and figures the tribunal declared that company had validly terminated the contract as the Iranian firm was responsible for the delay in the project. Accordingly, it directed the Iranian firm to pay the NTDC Rs714m in different heads. The NTDC is also entitled to the interest at the rate of 7.925pc per year for the Pakistani rupee portion of the damages awarded in its favor. The Iranian firm is also liable to pay 78pc of NTDC’s legal and other costs due to the arbitration.