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Informist, Monday, Feb. 24, 2025

 

NEW DELHI – The Supreme Court on Monday stayed a National Company Law Appellate Tribunal order which directed National Highways & Infrastructure Development Corp. Ltd. to agree for foreclosure of the Srinagar Sonamarg Tunnelway Ltd. concession agreement without imposing any conditions or allowing it to withhold INR 1.22 billion towards its claims. The apex court issued a notice to IL&FS Transportation Networks Ltd. and listed the case for hearing on Apr 15. 

 

Srinagar Sonamarg Tunnelway is a 100% owned subsidiary of IL&FS Transportation Networks. National Highways & Infrastructure Development said that it had two contracts with Srinagar Sonamarg Tunnelway and IL&FS Transportation Networks. Under the contract with IL&FS Transportation Networks, it had to recover INR 1.22 billion and under the Srinagar Sonamarg Tunnelway project, it was to give certain amounts, said National Highways & Infrastructure Development.

 

The petitioner said that it had always taken a stand that foreclosure of the Srinagar Sonamarg Tunnelway concession agreement would be considered by it only if it was allowed to adjust the claim of INR 1.22 billion it had against IL&FS Transportation Networks in relation to the Zojila Tunnel Project. However, the appellate tribunal rejected it without assigning any cogent reasoning, said the petitioner. Srinagar Sonamarg Tunnelway and IL&FS Transportation Networks are one and the same entity and the status of the petitioner was of a debtor rather than a creditor, it had the rights to adjust its claims it had against IL&FS from the payable amounts under Srinagar project, said National Highways & Infrastructure. 

 

The petitioner said a meeting was held in 2019 during which the terms of settlement for foreclosure of the Srinagar project were finalised, as per which, the concessionaire was to approach the appellate tribunal for allowing encashment of bank guarantees submitted as performance security for Zojila Tunnel Project , failing which, the amount was to be recovered from the payment due under Z-Morh Tunnel Project. 

 

Earlier, the government had entrusted the development, maintenance and management of Z-Morh Tunnel to the Border Roads Organisation. In furtherance of the same, Srinagar Sonamarg Tunnelway had entered into a concession agreement in 2013 with Border Roads Organisation for the construction, operation and maintenance of Z-Morh Tunnel including approaches on the Srinagar Sonamarg Gumri Road section National Highway- 1 in Jammu & Kashmir. Subsequently, the Z-Morh Tunnel Project was transferred from BRO to the Ministry of Road Transport and Highways in 2014. Thereafter, in 2016, the ministry decided to transfer the concession agreement of 2013 to the petitioner. In 2018, the petitioner entered into an agreement with IL&FS for the work of construction, operation and maintenance of two-lane bi-directional Zojila Tunnel.  End

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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