Ashok Leyland wins Rs 223 crore arbitration dispute with Delhi Transport Corporation
New Delhi, July 13
Ashok Leyland has won an arbitration award of Rs 222.65 crore, along with interest and legal costs, in its long-running dispute with the Delhi Transport Corporation, while the arbitral tribunal has rejected DTC's entire counterclaim against the commercial vehicle maker, according to a stock exchange filing.
The company informed the exchanges that the dispute arose after it supplied buses to DTC between 2009 and 2011 under contracts awarded through a tender process.
"Ashok Leyland Limited ("AL") had supplied buses to Delhi Transport Corporation (DTC) between years 2009-2011 against a tender invited by DTC. In pursuance of the contracts with DTC, AL had raised certain claims for which AL had initiated arbitration against DTC in year 2013," the company said.
Ashok Leyland said its original claim in the arbitration was Rs 445 crore, while DTC had filed a counterclaim of Rs 136 crore.
According to the filing, "Arbitral Tribunal vide its majority Award dated 6th July 2026 allowed part of the claims of AL in the sum of ₹222.65 Crore plus interest @10% per annum for the period of pre-arbitration, pendente lite and from the date of the Award till payment of the awarded amount along with legal cost of ₹2.96 Crore. The Tribunal has rejected the entire counter claim of DTC."
The company said it is reviewing the award and assessing the final amount receivable, including interest.
"The Company is in the process of reviewing the contents of the award, ascertaining the final award amount inclusive of interest, and considering available options for the remaining amount claimed but not awarded," it said.
Ashok Leyland added that the expected financial implications of the award are "being ascertained."
— ANI
Reader Comments
Wait, original claim was Rs 445 crore but they only got Rs 223 crore? And DTC's counterclaim of Rs 136 crore was completely rejected. So the net result is positive for Ashok Leyland but they still lost half of what they claimed. Interesting to see if they appeal for the remaining amount.
This is why we need to reform how PSUs handle contracts. DTC is supposed to provide public transport but they drag companies to arbitration over legitimate payments. Meanwhile, bus quality suffers and commuters like us bear the brunt. At least the tribunal rejected DTC's baseless counterclaim completely. Justice served, but slowly.
This is good news for Ashok Leyland shareholders! But I'm also wondering - if these buses were supplied between 2009-2011, they must be pretty old now. Is DTC still using them? And if the arbitration took 13 years, the interest component must be substantial. Need to see the final amount including interest. 🚌
As someone who works in procurement, this is a textbook case of why government contracts need better dispute resolution mechanisms. DTC's counterclaim being rejected entirely says a lot. But honestly, both parties could have saved time and money by settling earlier. 13 years is too long for business disputes. Hope this sets a precedent for faster arbitration in India.
Really happy for Ashok Leyland! They make reliable buses for our public transport. But this also shows how government corporations delay payments and then file counterclaims to avoid paying. DTC should focus on improving bus services instead of wasting taxpayer money on legal battles. ज
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