New Delhi, Feb. 3 -- In a relief for state-run power company NTPC Ltd, the Delhi high court has set aside an arbitral award that directed the company to pay Rs.1,891 crore to Jindal Infralogistics Ltd, a Jindal Group company.

The court's single bench order, passed on 30 January, found the award to be "patently illegal and perverse", stating that it lacked a proper basis for the quantification of damages. "The award is so perverse, it has to go in totality," the court observed while striking it down.

Jindal Infralogistics, a subsidiary of Jindal SAW Ltd, announced in an exchange filing on Monday that it plans to challenge the verdict before a division bench of the high court.

The dispute arose from a 2011 tripartite agreement between NT...