HCL Infosystems Subsidiary Loses ₹13.41 Cr Arbitration Case

HCL Infosystems' wholly-owned subsidiary, HCL Infotech, has received an adverse judgment from the Principal District Judge, Muzaffarpur, Bihar, in a Section 34 Objection Petition filed by Uttar Bihar Gramin Bank (UBGB). The petition challenged an Arbitral Award dated October 29, 2019, which had allowed HCL Infotech's claims of approximately ₹13.41 Crore plus interest and costs, while rejecting UBGB's counter-claims. The court found that the Arbitral Tribunal failed to make a categorical finding on the validity of the service agreement termination and erred in awarding 18% interest without proper reasoning. However, the judgment states that HCL's claims independent of the termination's legality remain unaffected. HCL Infosystems is currently evaluating the judgment and considering further legal action.