S&A Law Offices Represents PKCL In Securing Landmark Win In Compensation Cess Dispute
S&A Law Offices Represents PKCL in Securing Landmark Win in Compensation Cess Dispute
S&A Law Offices successfully represents Parsa Kante Collieries Limited (PKCL) in a significant legal matter involving a complex dispute on the liability for payment of Compensation Cess on coal rejects under the Coal Mining and Development Agreement (CMDA). The matter has culminated in a major legal victory for PKCL after a series of arbitration and court proceedings.
The dispute originated from a CMDA entered into between Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) and PKCL for coal mining and its supply to RVUNL’s power plants in Rajasthan. Following the implementation of Compensation Cess, questions arose over which party was liable to bear the cess on coal rejects. As the issue could not be resolved mutually, PKCL invoked arbitration proceedings.
The Hon’ble Arbitral Tribunal, through its Interim Award dated 25.06.2021 and Final Award dated 14.08.2021, ruled in favour of PKCL. It held that under the CMDA, RVUNL was liable for all future applicable taxes, including the Compensation Cess. The Tribunal awarded approximately ₹740 crore in favour of PKCL — including ₹330 crore payable directly by RVUNL and ₹410 crore to be adjusted from RVUNL’s books.
RVUNL challenged both awards under Section 34 of the Arbitration and Conciliation Act, 1996 before the Learned Commercial Court, Jaipur, which upheld the awards and dismissed RVUNL’s objections on 09.02.2024, stating that the Arbitrator’s view was plausible and did not warrant interference.
RVUNL further filed an appeal under Section 37 before the Hon’ble Rajasthan High Court, which also dismissed the appeal on 23.05.2025, affirming both the Commercial Court’s judgment and the arbitral awards.
S&A Law Offices, under the leadership of Mr. Manoj K. Singh (Counsel) and Mr. Nilava Bandyopadhyay (Senior Partner), along with Mr. Adhip Ray and Ms. Surabhi Rana, represented PKCL throughout the arbitration proceedings, as well as before the Commercial Court and the Rajasthan High Court.
This win demonstrates S&A’s strength in high-stakes arbitration and commercial disputes, and reinforces its capability to deliver exceptional results for its clients.
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