HC junks Central Railway plea against arbitral award to project contractor
This story was originally published at 19:42 IST on 24 June 2025
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NEW DELHI – The Bombay High Court Tuesday rejected a petition by Central Railway--represented by its general manager--challenging an arbitral award of INR 286.02 million, including interest, in favour of a project contractor PLR HC RBR JV, a joint venture of PLR Projects Pvt. Ltd., Harshitha Constructions, and RBR.
"... I agree with the entire outcome in the impugned award and find no infirmity warranting interference under Section 34 of the Act (Arbitration and Conciliation)," said the court, adding that the petition was dismissed as being devoid of merit. Any amount deposited in this court along with accruals shall be released to the contractor forthwith, and in any event within a period of four weeks, said Justice Somasekhar Sundaresan.
The case has its genesis from a 2018 agreement between the parties concerning work on the railway line between Wardha and Nanded in Maharashtra. The project involved embankment and cutting works, bridge approaches, trolley refuges, side drain construction, and minor bridges. A dispute arose over the project completion deadline, leading Central Railway to impose a penalty on the joint venture. In addition, the Central Railway refused to release the billed amount to the joint venture.
The Central Railway wrote to the contractor asking it to complete the work while the latter wrote to the former that the work could not be carried out under the conditions imposed by the Central Railway. This stand-off led to the arbitration proceedings that led to the arbitral award in 2023. End
Reported by Surya Tripathi
Edited by Subhojit Sarkar
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