Ashok Leyland Wins ₹222.65 Crore Arbitration Award Against DTC

Key Highlights

• Ashok Leyland wins ₹222.65 crore arbitral award against DTC.

• Tribunal grants 10% annual interest until payment.

• Legal costs of ₹2.96 crore awarded to Ashok Leyland.

• DTC's ₹136 crore counterclaim rejected completely.

• Company reviewing final financial impact and legal options.

Ashok Leyland Limited has won a major legal victory after an Arbitral Tribunal in New Delhi ruled in its favour in a long-running dispute with the Delhi Transport Corporation (DTC) over bus supply contracts.

The company informed the stock exchanges that the tribunal passed its majority award on July 6, 2026, granting Ashok Leyland ₹222.65 crore along with 10% annual interest and legal costs.

Dispute Related to Bus Supply Contracts

The dispute dates back to buses supplied by Ashok Leyland to DTC between 2009 and 2011 under a tender issued by the state-run transport corporation.

Following disagreements over the contracts, Ashok Leyland initiated arbitration proceedings against DTC in 2013, seeking compensation for claims arising from the supply agreements.

Tribunal Awards ₹222.65 Crore Plus Interest

According to the company's stock exchange filing, Ashok Leyland had originally claimed ₹445 crore, while DTC filed a counterclaim of ₹136 crore.

After reviewing the case, the Arbitral Tribunal awarded ₹222.65 crore to Ashok Leyland. In addition, the tribunal directed that the company receive 10% annual interest for the pre-arbitration period, the pendente lite period, and from the date of the award until the payment is made.

The tribunal also awarded ₹2.96 crore towards legal costs.

DTC's Counterclaim Rejected

The tribunal rejected Delhi Transport Corporation's entire counterclaim of ₹136 crore, giving Ashok Leyland a significant legal win in the arbitration proceedings.

Company Reviewing the Award

Ashok Leyland stated that it is currently reviewing the arbitral award and calculating the final amount receivable, including the applicable interest. The company is also evaluating its options regarding the portion of its original ₹445 crore claim that was not awarded by the tribunal.

The company added that the final financial impact of the award is still being determined.

No Involvement of Promoters or Key Management

Ashok Leyland clarified that the arbitration matter does not involve any litigation against its promoters or key management personnel. The company also confirmed that no settlement has been reached between the parties, as the matter was decided through the arbitral award.

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CMV360 Says

Ashok Leyland's arbitration victory marks an important development in its long-running dispute with Delhi Transport Corporation over bus supply contracts. The tribunal awarded ₹222.65 crore, interest, and legal costs while rejecting DTC's counterclaim entirely. The company is now assessing the total amount receivable and considering its options regarding the remaining portion of its original claim, with the final financial impact yet to be determined.