New Delhi [India], July 10 : PVR INOX Limited has secured an arbitral award against Victory Infraedge Private Limited, with the sole arbitrator and former Judge Justice Vinod Goel directing the developer to refund the security deposit along with interest, resulting in a total award of ₹1,22,99,959, besides arbitration costs of ₹5 lakh. The award was announced on July 7, 2026.
Under the award, the arbitral tribunal directed Victory Infraedge to refund ₹68.25 lakh, being the refundable security deposit paid by PVR INOX, and also awarded ₹54,74,959 as interest at the rate of 12% per annum from November 1, 2019, till the date of the award, taking the total amount awarded to ₹1,22,99,959.
The dispute arose when, under the Letter of Intent (LOI) entered into in August, 2018, under which Victory Infraedge had agreed to provide space on the fourth floor of its proposed VG-48 Mall at Sector 48, Gurugram, for a PVR INOX multiplex.
Under the LOI, PVR INOX had paid ₹68.25 lakh as a refundable interest-free security deposit, while Victory Infraedge was required to hand over the premises by October 2019.
According to PVR INOX, Victory Infraedge failed to fulfil its various contractual obligations, including handing over possession of the premises; as a result, PVR terminated the LOI and thereafter issued a legal notice seeking a refund of the security deposit before invoking arbitration.
After considering the pleadings, evidence and submissions of both parties, the arbitral tribunal allowed PVR INOX's claim.
On the question of interest, the tribunal held that although the deposit was described in the LOI as an "interest-free security deposit", PVR INOX was entitled to interest from the date of default, after the respondent failed to fulfil its obligations and refund the amount.
Accordingly, the arbitral tribunal allowed PVR INOX's claims by directing refund of the security deposit, awarding interest @ 12% p.a. from the date of default till the date of the award, also granting future interest @ 12% p.a. in case of non-payment within 60 days and awarding ₹5 lakh towards arbitration costs.
Advocate Sumit Gehlot, Manju Gehlot, TS Thakran & Ankit Pandey from Fidelegal Advocates & Solicitors represented the claimant PVR INOX Ltd. Advocates Fanish Kumar Jain & Abhishek Shokeen appeared for respondent developer Victory Infraedge Pvt. Ltd.