PTT Books ฿600Mn from the Dispute against RPCG as Supreme Court Renders Final Judgement

PTT Public Company Limited (PTT) is expected to receive 600 million baht from RPCG Public Company Limited (RPCG) from two disputes against each other.

 

The two arbitration disputes against each other are summarized as follows;

1) Dispute of the Thai Arbitration Institute No. Black 114/2552 No. Red 23/2559, in which RPCG sought damages from PTT on the ground of wrongful termination of contract. The majority of the tribunal awarded that PTT made payment of damages at the rate of Baht 390,000,000 per annum from February 1, 2012 to the date on which the tribunal rendered the award (March 25, 2016), approximately amounted to Baht 1,600million,with interest of the damage calculated above at the rate of 7.5 percent per annum from the date on which the tribunal rendered the award until the date on which PTT made full payment.

Subsequently, PTT filed a motion to set aside the arbitral award with the Civil Court and RPCG filed a motion to enforce the arbitral award with the Civil Court and on September 19, 2019, the Civil Court rendered a judgment to enforce the arbitral award. Therefore, PTT filed an appeal against the Civil Court’s judgment with the Supreme Court.

 

2) Dispute of the Thai Arbitration Institute No. Black 78/2555 No. Red 37/2560, in which PTT sought an overdue payment for goods delivered from RPCG. The tribunal unanimously awarded that RPCG made payment to PTT in the amount of Baht 1,555,275,403.59 with interest of the principal amount of Baht 1,518,108,737.16 at the rate of 9.375 percent per annum from the date on which the statement of claim was submitted (May 18, 2012) until the payment was completed.

Subsequently, PTT filed a motion to enforce the arbitral award with the Civil Court and RPCG filed a motion to set aside the arbitral award with the Civil Court and on March 29, 2019, the Civil Court rendered a judgment to set aside the arbitral award. Therefore, PTT filed an appeal against the CivilCourt’s judgment with the Supreme Court.

 

On June 23, 2021, the Supreme Court rendered judgments in both cases which were summarized as follows;

1) Dispute of the Thai Arbitration Institute No. Black 114/2552 No. Red 23/2559, the Supreme Court rendered judgment in concurrence with the Civil Court’s judgment, to enforce the arbitral award and the case was final.

As a result, PTT was obliged to make payment to RPCG in the approximate amount of Baht 2,200 million within 30 days from the judgment date.

 

2) Dispute of the Thai Arbitration Institute No. Black 78/2555 No. Red 37/2560, the Supreme Court rendered judgment in reverse of the Civil Court’s judgment, to enforce the arbitral award and the case was final.

As a result, RPCG was obliged to make payment to PTT in the approximate amount of Baht 2,800 million within 30 days from the judgment date.

 

PTT stated that it will exercise the right to offset against the amount PTT will have to pay to RPCG in the Dispute of the Thai Arbitration Institute No. Black 114/2552 No. Red 23/2559 as above mentioned, resulting in PTT to record a difference in the payment amount of Baht 600 million.