38.6c New Delhi, India, Thursday, May 23, 2024

Bombay HC Directs Toll Operators to Deposit Rs.10 Lakhs as Cost to Tata Memorial Hospital [READ JUDGMENT]

By Pavitra Shetty      13 November, 2020 03:54 PM      0 Comments
Bombay HC Directs Toll Operators to Deposit Rs.10 Lakhs  as Cost to Tata Memorial Hospital [READ JUDGMENT]

On Friday (November 13, 2020), the Bombay High Court dismissed the writ petitions filed by toll operator infrastructure companies seeking directions to provide for a dispute resolution mechanism through Arbitration regarding contracts they entered into with Maharashtra State Road Development Corporation Limited (MSRDC).

Writ petitions were filed by M/s.MEP RGSL Toll Bridge Pvt. Ltd. (MEPRGSL) and Raima Toll & Infrastructure Pvt. Ltd.

There was no relation between these two contracts, as the cause of action is common, the petitions were tagged together.

Both the petitioners are stated to be 'Special Purpose Vehicles' of one MEP Infrastructure Developers Limited (MEPIDPL). 

Senior Advocate Dr.Abhishek Manu Singhvi appeared on behalf of the petitioners and Senior Advocate Dr.Milind Sathe for respondents.
The petitioners were beneficiaries of 'toll contracts' awarded by MSRDC, which were at different locations and for different periods. 

The contract period was to be of 3 years commencing from February 6, 2014 and to end on February 1, 2017.
The contract period in regard to both these contracts had long expired.
The first petitioner's contract with Maharashtra State Road Development Corporation Limited had come to an end but it still asked the petitioner to pay Rs.16.86 crores as the petitioner's revenue share as per the contract.

As per the dispute resolution clause, as contained in the agreement, a committee comprising of the Legal, Accounts and Engineering Division was formed but they did not accept the objections of the petitioner.
Petitioners have contended that the State Government has provided for an "Institutional Arbitration Policy", as a preferred mode of dispute resolution in respect of Government contracts.

Bench of Chief Justice Dipankar Datta and Justice GS Kulkarni heard the petition.
The Court observed that the  contracting freedom and the free consent of the parties, to have mutually agreed terms in a contract is not to be interfered with.

The Court can not exercising writ jurisdiction to  re-write or vary the terms and conditions of the contract. 

The writ petition was accordingly dismissed by the court and the cost of Rs.5 Lakhs each petitioner was ordered to be deposited with the Tata Cancer Hospital within two weeks from the date of the order passed.



Share this article:

Leave a feedback about this

Trending Judiciary
Supreme Court dismisses plea for review of judgment on Article 370 [Read Order]

SC dismisses petitions challenging its ruling on Article 370, affirming the Centre's decision to revoke J&K's special status and create two Union Territories.

22 May, 2024 12:55 PM
Trending Judiciary
Manish Sisodia Bail: Court Cites "Great Betrayal of Democratic Principles" in Liquor Policy Case

Delhi HC rejects Manish Sisodia's bail plea in the liquor policy scam case, calling his conduct a "great betrayal of democratic principles" and a misuse of power.

22 May, 2024 01:11 PM


Trending Judiciary
ED to seek court nod for custody of accused, if not arrested till cognisance of complaint: SC [Read Judgment]

The Supreme Court ruled that the Enforcement Directorate must seek court approval for custody of an accused if not arrested before the court takes cognizance of a complaint.

17 May, 2024 01:38 PM
Trending Judiciary
Fundamental right to health includes consumers' right to be made aware of quality of products: SC [Read Order]

Right to health includes consumers' right to know product quality. Advertisers must submit self-declarations for ads to ensure transparency and accountability: SC

17 May, 2024 01:43 PM
Trending Judiciary
SC asks ED to file response to Soren's plea for interim on May 20

SC asks ED to file a response by May 20 to Hemant Soren's plea for interim bail during Lok Sabha elections, with a hearing scheduled for May 21.

17 May, 2024 06:12 PM
Trending Judiciary
SC notice to EC on plea by ADR for release of voters turnout data

SC issues notice to EC on ADR plea to release voter turnout data. SC demands EC to disclose vote counts within 48 hours after each phase of the 2024 Lok Sabha polls.

18 May, 2024 11:16 AM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email