Raghav Chadha, Mr. Aman Chaudhary, Ms. Diksha and Mr. Kushagra Jain, Advocates v. NATIONAL THERMAL POWER CORPORATION LIMITED ANR

Application stands disposed of. Allowed, subject to all just exceptions. W.P.(C) 993/2025 3. The present petition has been filed by the petitioner, inter alia, seeking that the respondent no.1/ National Thermal Power Corporation Limited (‘NTPC’) and the respondent no.2/the Department of Expenditure, Ministry of Finance, be directed to consider the offer of the petitioner under This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 31/01/2025 at 12:31:19 the “Vivad se Vishwas II (Contractual Disputes)” scheme (‘VSV – II Scheme’) issued by the Department of Expenditure (Procurement Policy Division), Ministry of Finance, Government of India. 4. An Arbitral Award dated 09.01.2018 was passed in arbitration proceedings between the petitioner and NTPC. Proceedings under Section 34 of the Arbitration and Conciliation Act, 1996 (‘A&C Act’) emanating from the said award are stated to be pending. During the pendency of the said proceedings, on 29.05.2023, the Ministry of Finance vide OM No. F.1/7/2022-PPD launched the VSV – II Scheme. The said scheme contemplates the following steps and timelines :- “Submission of claims and Time periods

14. Contractors should submit their claims through Government e- Marketplace (GeM), for which GeM will provide a dedicated link on their portal for implementation of this scheme. The link/ portal will provide functionality to contractors to register their claims through their authorized personnel. For non- GeM contracts of Ministry of Railways, contractors should ). The informationregarding contracts for which claim is to be lodged on IREPS will be provided on GeM as well as IREPS. The broad features of these portals are as under: their claims on (www.ireps.gov.in register IREPS Step 1: The registered contractor shall list out the eligible disputes which it is willing to settle under this scheme, on the portal. The list of the procuring entities will be available through drop down menu on the portal. The details of the dispute should contain atleast following: contract number, procuring entity/ contracting authority, paying authority, net award amount (as detailed in para 10(a) and 10(b)), claim amount with details thereof and the status of the dispute. Step 2: GeM shall intimate (through dashboard) such details to the procuring entities to verify the dispute under this scheme. The procuring entity shall verify the claim details and update the same, if any. Each entry on the portal shall be dispute specific. There can be more than one dispute under same contract, which shall be claimed, under this scheme, separately. Step 3: The procuring entities shall evaluate the settlement amount This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 31/01/2025 at 12:31:19 due, as per this scheme and offer it to contractor for acceptance normally within two weeks of receipt of claims on the portal. The contractor will be required to accept the offer within the prescribed time period. If the contractor accepts the offer Step 4 shall follow else Step 5 shall follow. Time available for contractor to respond to the offer shall be 30 (thirty) calendar days only (Calendar day ending at midnight). There shall be no option for any relaxation, including claims of GeM portal not working on last day, etc. However, the procuring entity shall have the authority to amend/ withdraw the offer, under this scheme, at any time before the acceptance by the contractor. Immediately on acceptance of the settlement offer under the scheme, an acknowledgement through email, of the parties reaching such settlement, shall be automatically generated and sent to both the parties by the portal. Step 4: The contractor will be given 45 days (or longer period if permitted by acknowledgement email as indicated in Step 3 above, to file application for withdrawal of the case before the court. the procuring entity), the date of However, only after the contractor uploads the document indicating that court has permitted to withdraw the case, if applicable, should the settlementagreement under this scheme be executed and the payments made by theprocuring entities. In case the procuring entity has to withdraw the case from court, the procuring entity shall also file an application for such withdrawal within 45days. The settlement agreement shall be executed within 30 days of submission of application of withdrawal of case from the court in such cases, without waiting for formal permission of the court regarding withdrawal of the case. If the contractor agrees to the settlement under this scheme, a settlement agreement (a model agreement is at Annexure I which the procuring entitiesare free to appropriately modify, without changing core terms, based on theirpast experience, local needs etc.) may be digitally signed, preferably in pdfformat, by both the parties. The settlement agreement shall have the samemeaning and consequence as the settlement agreement consequent to successful conciliation as per The Arbitration and Conciliation Act, 1996. The settlement agreement shall be signed only by the parties without any need for attestation of any conciliator. Stamp duty for the settlement agreement, inall cases under this scheme, shall be paid by the contractor. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 31/01/2025 at 12:31:19 The settlement agreement shall clearly state that even though the dispute isfinally settled, the settlement does not decide on any issue, either of law or offact, under dispute. Further, it should be clearly stated and implied from thesettlement agreement that as a process of settlement the parties shallwithdraw all litigation pending related to this dispute, willingly, without duressand after fully understanding the consequences. The Settlement Agreement shall contain a statement to the effect that eachof the persons signing thereto (i) is fully authorized by the respective Partyhe/ she represents, (ii) has fully understood the contents of the settlementagreement, (iii) is signing on the settlement agreement out of complete freewill and consent, without any pressure, undue influence, and (iv) thesettlement agreement shall be final and binding on and enforceable againstthe Party and the persons claiming under/ through him. The procuring entity or the contractor, as the case may be, shall makepayments within 30 days of the execution of the settlement agreement. Step 5: If the contractor does not accept the offer: the ongoing litigation process maycontinue.”

5. Learned counsel for the petitioner submits that although the petitioner followed the above procedure as set out in the scheme, the requisite steps, as envisaged to be taken by the NTPC under the said scheme, have not been taken. 6. Vide letter dated 11.02.2024, it was intimated by the respondent no.1 (NTPC) to the petitioner as under :- Ref.: NTPC/BgTPP/CCD/PLL/VVS-II/2024/01 Dated:11.02.2024 To, Shri Ashwini Mehra Liquidator- Punj Lloyd Limited (Reign No: IBBI/IPA-001/IP-P00388/2017-18/10706) Sub: Settlement of contractual dispute under 'Vivad se Vishwas II Scheme' of GOI reg. Dear Sir, This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 31/01/2025 at 12:31:19 NTPC Ltd. is in receipt of your letter vide Ref No. AM/PLL/LQ/2023-012 dated 01.02.2024 with captioned subject "Settlement of Contractual Dispute Under 'Vivad se Vishwas II Scheme' of GOI." It may kindly be noted that your Request No #SR-57721695712649023 dated 26.09.2023 on GeM portal submitted against Vivad Se Vishwas -II (Contractual Disputes) Scheme introduced by Department of Expenditure, Ministry of Finance, GOI vide OM dated 29.05.2023 has been duly received by NTPC Ltd. Meanwhile, NTPC Ltd. has also received a notice dated 23.10.2023 from a Govt Investigating Agency in the matters of investigation in the affairs of PunjLlyod Limited and some information have been sought from NTPC in this regard. In view of the above, NTPC has sought further directions from the Govt Investigating Agency on the same. Pending clarifications from them, NTPC has put the processing of the claim on hold. This is for your information please. Thanking You Yours Sincerely, Sd/- (Sushil Kumar) AGM(CCD) NTPC,BgTPP”

7. Again, vide letter dated 02.12.2024, it was intimated by the respondent no.1 (NTPC) to the petitioner as under :- “Ref: NTPC/BgTPP/2024-25/02 Dated: 02.12.2024 To, Sh. Ashwini Mehra, Liquidator Punj Lloyd Limited C/O Mr. Surendra Raj Gang GT Restructuring Services LLP L-41, Connaught Circus New Delhi – 110001 Sub: Settlement of contractual dispute under “Vivad se Vishwas-II Scheme” of GOI. Dear Sir, This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 31/01/2025 at 12:31:19 NTPC Ltd. is in receipt of your letter vide Ref No. AM/PLL/LQ/2024-049 dated 22.11.2024 withcaptioned subject "Settlement of Contractual Dispute Under 'Vivad se Vishwas II Scheme' of Go1.· As has been already intimated to you vide NTPC letter dated 11.02.2024, although your Request No#SR-57721695712649023 dated 26.09.2023 on GeM portal had been duly received. NTPC Ltd. hadreceived a notice dated 23.10.2023 from a Govt Investigating Agency regarding investigation in the affairs of PunjLlyod Limited. It was also intimated to you by the same letter that NTPC has sought further directions from theagency and clarifications from them, NTPC has put the processing of the claim on hold. Additionally, it may also be noted that considering the importance of the matter for all concerned,recently, NTPC has also sought necessary directions from the Department of Expenditure, Ministry ofFinance. Therefore, pending further directives from the concerned government departments, M/s Punj LloydLtd request on GeM under Vivad se Vishwas II Scheme has been put hold for the time being. Thanking You Your's Truly Sd/- Sushil Kumar, AGM (CCD) NTPC Ltd. Bongaigaon Thermal Power Station”

8. It is evident from the above communications of NTPC that the petitioner’s request for settlement under VSV - II Scheme has been in a state of limbo. Learned counsel for the petitioner submits that given the nature of the VSV-II Scheme, the timelines contemplated thereunder are sacrosanct and the entire purpose of the scheme will be frustrated if proposals for settlement are allowed to languish indefinitely. He further submits that the hearing in the pending petition under Section 34 of the A&C Act is also contingent on the outcome of the petitioner’s proposal under the said scheme inasmuch as it will not be necessary to adjudicate the challenge to the arbitral award, if a a settlement fructifies under the said scheme. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 31/01/2025 at 12:31:19

9. Learned counsel for the respondent no.1 (NTPC) emphasizes that the respondent no.1 was constrained to put on hold the petitioner’s application under the scheme, in view of a notice dated 23.10.2023 received from an Investigating Agency regarding the affairs of the petitioner. In the circumstances, the respondent no.1 has sought clarification from the respondent no.2/Department of Expenditure, Ministry of Finance as to whether further steps can be taken for settlement under the Scheme. It is submitted that the NTPC shall abide by such directions as may be given by the said Ministry. 10. Accordingly, after some hearing, the present petition is disposed of with a direction to the respondent no.2 (Department of Expenditure, Ministry of Finance) to duly respond to the communications (Annexure P11 and Annexure P15) sent by the respondent no.1 (NTPC) and issue appropriate instructions/ directions to respondent no. 1 as to whether the petitioner’s settlement offer under the VSV - II Scheme, can be processed or not. Let the requisite decision be taken by the respondent no.2 as expeditiously as possible, and preferably within a period of eight weeks from today. 11. Once the respondent no.1 (NTPC) is in receipt ofthe requisite clarification/ direction from the respondent no.2, the same shall be duly intimated to the petitioner within a period of one week thereafter. 12. With the above directions, the present petition is disposed of. JANUARY 27, 2025/r SACHIN DATTA, J This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 31/01/2025 at 12:31:19