Legal dispute SCR 290 million at stake for Vijay

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Legal dispute SCR 290 million at stake for Vijay

Post  Sirop14 on Tue Aug 08, 2017 8:24 am


Legal dispute SCR 290 million at stake for Vijay


Monday 7 August, 2017
The Supreme Court is expected to announce a decision in the coming days in relation to the heated legal battle between Eastern European Engineering Proprietary Limited (EEEL) and Vijay Construction Proprietary Limited.
by R. Meetarbhan
The stakes are very high. In this matter Vijay has been ordered to pay a sum of 18 million (around SCR 290 million) Euros to the promoters of the Savoy Resort and Spa at Beau Vallon.
It all started in 2012. Following a dispute, EEEL commenced arbitration proceedings against Vijay. The sole arbitrator, based in Paris, delivered his Award in November 2014. The construction company lost the arbitration. It was subsequently ordered to pay a total of 18 million Euros to EEEL. Vijay challenged the Final Arbitral Award in the Supreme Court of Seychelles on procedural and public policy grounds. In a judgment delivered on 18 April 2017, Justice Fiona Robinson declared the Final Arbitral Award executory in the Seychelles. It ordered Vijay to pay the sum of Euro 17,042,086.36 and US Dollar 126,000.00 to EEEL plus the interest.
Vijay has filed a notice of appeal against the decision of Justice Robinson. The construction company wants the Final Arbitral Award to be struck off, or alternatively to make it non-executory in Seychelles.
The Supreme Court has granted a stay of execution of the judgment pending the appeal. But Vijay has had to lodge security to a value of 8 million Euro as a condition of the stay. The Supreme Court is expected to announce in the coming days whether the security lodged by Vijay is accepted or not. If the go-ahead is given, the hearings for the appeal will be held early in November this year.
It was in 2011 that EEEL and Vijay entered into a series of six contracts by virtue of which EEEL hired Vijay to carry out construction work in respect of Savoy Resort and Spa. The major part of damages awarded by the arbitrator was in respect of Contract 6 on account of damages for the costs that EEEL had incurred to finish the Savoy Resort Project, overpayments for work performed by Vijay, and the provision of reinforcement steel. The arbitrator also ordered Vijay to pay EEEL €600,449.321 under Contracts 1-5 on
account of damages for delays and the provision of reinforcement steel.


Sirop14

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