Key Quantitative Figures

The arbitration award that was overturned had allowed claims of approximately ₹13.41 crore under various heads, together with pendente lite and future interest at 18% per annum, and a further sum of ₹20 lakh towards costs.

Dates of Action

  • Arbitral Award Date: 29.10.2019
  • Objection Petition Filing: Miscellaneous (Arbitration) Case No. 249 of 2019
  • Court Judgment Date: 16.09.2026
  • Judgment Received Date: 06.10.2026
  • Disclosure Date: 06.10.2026

Parties Involved

  • Applicant/Objector: Uttar Bihar Gramin Bank (UBGB)
  • Respondent: HCL Infotech Limited (wholly owned subsidiary of HCL Infosystems Limited)
  • Court: Principal District Judge, Muzaffarpur, Bihar
  • Listed Entity: HCL Infosystems Limited

Legal Proceedings Details

The Objection Petition was filed by Uttar Bihar Gramin Bank under Section 34 of the Arbitration and Conciliation Act, 1996, challenging the Arbitral Award dated 29.10.2019. The original award had allowed HCL Infotech's claims and rejected UBGB's counter claims.

Judgment Summary

The Principal District Judge allowed UBGB's Petition and set aside the arbitral award based on two main grounds:

1. The Arbitral Tribunal failed to make a categorical finding that the termination of the Service Agreement dated 11.12.2012 by UBGB was legally invalid

2. The Tribunal mechanically relied upon Section 31(7) of the Arbitration and Conciliation Act, 1996 while awarding interest at 18% per annum, without examining the applicable statutory provision or recording reasons for treating 18% as a reasonable rate

The court held that claims of HCL which are independent of the legality of termination and legally and factually severable shall remain unaffected.

Current Status and Next Steps

HCL Infotech Limited is currently evaluating the judgment and the remedies available. The company intends to take further action as may be advised and considered appropriate, in accordance with the applicable law, before the competent court/High Court at Patna, as the impugned judgment appears to be ambiguous.

Financial Impact Assessment

The disclosure does not quantify the specific financial impact of this adverse judgment. The original arbitration award value of approximately ₹13.41 crore plus interest and costs is now set aside, but the court noted that claims independent of termination legality remain unaffected.