HCC share price rises 9% after winning challenge in SC
The company will now be in a position to execute awards amounting to around Rs 1,584 crore.
November 29, 2019 / 02:38 PM IST
Hindustan Construction Company (HCC) share price rose 9 percent intraday on November 29 after the company won a challenge in the Supreme Court to set aside Section 87 of the Arbitration and Conciliation Act.
The company will now be in a position to execute awards amounting to about Rs 1,584 crore, which were impacted by Section 87.
The provision provided for an automatic stay on enforcement of the award once the opposite party challenged it in court.
Section 87 was a recent amendment to the Arbitration and Conciliation Act, passed by Parliament in the last monsoon session and was notified on August 9, 2019.
The company has 56 arbitration awards outstanding, totalling Rs 6,419 crore.
Of this amount, Rs 2,532 crore has been withdrawn against bank guarantees and the remaining Rs 3,887 crore is yet to be received as the matters are currently at various stages of challenge by government agencies in Court.
At 1424 hours, Hindustan Construction Company was quoting at Rs 11.70, up Rs 0.52, or 4.65 percent on the BSE.