Legal Battle Over Mumbai Metro Arbitration Escalates
The Bombay High Court instructed MMRDA to deposit Rs 1,169 crore related to its arbitration dispute with Mumbai Metro One Pvt Ltd. The MMRDA sought a stay on the tribunal's orders but was denied interim relief. The court emphasized the importance of arbitration awards being upheld.
- Country:
- India
The Bombay High Court has directed the Mumbai Metropolitan Region Development Authority (MMRDA) to deposit Rs 1,169 crore in the court registry, relating to its arbitration dispute with Mumbai Metro One Pvt Ltd (MMOPL), a Reliance Infrastructure subsidiary.
MMRDA challenged August 2023 and February 2024 tribunal decisions over metro project disputes, seeking an interim stay on the arbitral award. However, Justice Somasekhar Sundaresan refused any interim relief without the deposit, emphasizing the weight of arbitral awards.
The court noted that granting a stay without a deposit contradicts legislative intent to strengthen arbitration. If MMRDA deposits the amount by July 15, enforcement of the award will be stayed pending final hearing.
(With inputs from agencies.)
ALSO READ
India's Aspiration to Become an International Arbitration Hub
India-UK Legal Synergy: Forging a Path for Enhanced Arbitration
Building Bridges: Indo-UK Arbitration Ties Strengthen Economic Corridor
CJI Gavai Champions Globalization of India's Arbitration System
Tribunal Orders School to Properly Maintain Noida Park
Google News