Halani International Limited v.
Afcons Infrastructure
Limited
Project Summary
ONGC released tender-
Afcons(Leader)+ Halani+ Triune came together and formed a consortium for
bidding and awarded the project on 29.01.16
● This project is to be completed by 30.04.18 (extended 31/01/19)
● A dispute arose between afcon and triune then triune replaced by nauvatra
● Halani filed a claim of 1472 Cr for LEWPP-I and 1635 Cr for LEWPP-II
● Then a counter of 135 Cr against 1472 Cr was filed by Afcon and for 1635
Cr another counter of 61 Cr by Afcon.
Orders Summary
● Afcon has mentioned in its petition regarding interim relief that Halani failed
to deploy the required No. of barges(2016-17). (deployed 1 against 6)
● Then Halani assured to deploy 9 and deployed only 2.
● Afcon- Halani informed about the crunch of funds and Short term advance
agreement signed for the advance of USD 3.6 mn. (10/11/17)
● Then notice was sent to Halani regarding default for non-completion of work
and asked to transfer its work and payment to Afcon(8/2/18)
● Halani informed about 5 in-house accommodation barges and an increasing
no. of demand is very higher than estimated.
● Then Afcon Replied that this defence was not acceptable as it was lumpsum
only and this is a breach of obligation after receiving USD 3.6 mn as
advance.
● Then Halani asked to cap on the No. of barge days and advance of USD
15mn which was not accepted by Afcon and informed Halani that it is not
possible because of guidelines of RBI and requested Halani to transfer the
balance work to Afcon which was not accepted by Halani.(9/6/18)
● Afcon informed about default to Halani.(18/6/18)
● Again on 27th July during the meeting, Halani demanded a cap on barge
days and advance which was not accepted.
● Now the dispute is, Halani is saying that the advance agreement is not a part
of the consortium agreement and Afcon is saying that it is a part of the same.
Then, the court held in the favour of Afcon and held that Halani was in obligation
and defaulted in deploying the vessels.
It was held by the court that agreements are interlinked.
It was held by the court that Afcon can perform the contract.
It was held by the court that Halani will repay with interest and if fail to do so then
will pay along with penalty.
● Then in another petition, Halani refused to extend the bank guarantee as
Halani’s work was taken over by Afcon.and balance was convenience ws in
favour of Halani.
● The contention of Afcon was that Halani do not have any assets in India to
Satisfy Arbitration Award.
● And Halani is having liabilities and obligations under agreements, which are
1. Liquidated damages
2. Defect liabilities and performance guarantee
3. GST and necessary documents
● Halani is saying that they have discharged the liquidated damages in
proportionate to work i.e., USD 272,390.31
● Assets of respondent No. 1 are arrested in different countries in form of
vessels and barges.
● The court ordered Halani to submit GST documents to ONGC.
