Case Name: Navayuga Engineering Company Limited vs. Sikkim Urja Limited & Ors.
Court/Authority: Supreme Court of India, Civil Appellate Jurisdiction.
Civil Appeal No.: /2026 (arising out of SLP (C) No.26807/2025) and another appeal arising out of SLP (C) No.27163/2025.
Order Date: 22 May 2026 (New Delhi).
Relevant Prior Dates: Arbitral award dated 01‑10‑2019; High Court of Sikkim judgment dated 30‑05‑2025 (Arb. A No.1 of 2024); Interim order dated 14‑10‑2025.
Parties Involved
Appellant(s): Navayuga Engineering Company Limited; Sew Infrastructure Limited (both members of a three‑company consortium).
Respondent(s): Sikkim Urja Limited (formerly Teesta Urja Limited) and others.
Third Consortium Member: Abir Infrastructure Private Limited – did not file an appeal; Corporate Insolvency Resolution Process (CIRP) initiated under the Insolvency and Bankruptcy Code, 2016.
Counsel for Petitioners: Mr. Saurav Agrawal, Mr. Shantanu Agarwal, Mr. Saurabh Seth, Mr. Dheeraj P Deo, Mr. Sumer Dev Seth, Ms. Allaka Malikayi, Mr. Abhinav Tyagi, Mr. Manas Arora, Mr. Anshuman Chowdhury, Ms. Prachi Dubey, Mr. Aarya Bhat, Mr. Kabir Dev, Mr. S.S. Ray (Sr. Adv.).
Counsel for Respondents: Mr. Rana S Biswas, Mr. Shyam Divan (Sr. Adv.), Mr. Sunil Kumar Sharma, Mr. N.k. Rahete, Mr. Kartik Chettiar, Mr. Yash Tripathi, Mr. S.S. Ray (Sr. Adv.), Mr. Shubhaankar Ray, Mr. Shankar K Jha, Ms. Rakhi Ray, Mr. Saurav Agrawal, Mr. Shantanu Agarwal, Mr. Saurabh Seth, Mr. Dheeraj P Deo, Mr. Sumer Dev Seth, Ms. Allaka Malikayil, Mr. Abhinav Tyagi, Mr. Manas Arora, Mr. Anshuman Chowdhury, Ms. Prachi Dubey, Mr. Aarya Bhat, Mr. Kabir Dev.
Bench: Hon'ble Mr. Justice Sanjay Kumar and Hon'ble Mr. Justice K. Vinod Chandran.
Issues / Allegations / Violations
The appeals challenge the High Court of Sikkim’s judgment dated 30‑05‑2025, which had set aside the arbitral award dated 01‑10‑2019.
The core issue is whether the High Court’s decision should be overturned and the original arbitral award reinstated for the two appellant companies.
The third consortium member, Abir Infrastructure Private Limited, did not contest the High Court judgment; consequently, no relief can be granted to it.
Findings & Observations
The Court observed that the matters are squarely covered by the precedent Prakash Atlanta (JV) vs. National Highways Authority of India.
Only Navayuga Engineering Company Limited and Sew Infrastructure Limited filed appeals; Abir Infrastructure Private Limited refrained from filing.
Since Abir Infrastructure did not assail the judgment dated 30‑05‑2025, the Court held that no relief could be granted to that entity.
Penalties / Settlements / Directions
The High Court judgment dated 30‑05‑2025 is set aside insofar as it pertains to Navayuga Engineering Company Limited and Sew Infrastructure Limited.
The arbitral award dated 01‑10‑2019 is restored for Navayuga Engineering Company Limited and Sew Infrastructure Limited.
The interim order dated 14‑10‑2025 is vacated.
The amount lying in the fixed deposits, as per the interim order, is to be released to the appellants (Navayuga and Sew Infrastructure).
Corrective Actions & Future Obligations
Release of the fixed‑deposit funds to the two appellant companies as directed.
No further relief or corrective measures are ordered for Abir Infrastructure Private Limited, which remains under the CIRP.
Final Ruling & Enforcement
Both appeals are allowed as per the signed order placed on the file.
The order is signed by Justices Sanjay Kumar and K. Vinod Chandran and recorded on 22‑05‑2026.
Enforcement will involve vacating the interim order and ensuring the release of the fixed‑deposit amounts to the appellants.
