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Informist, Monday, Dec. 1, 2025

 

--SC modifies HC order asking MMRDA to deposit INR 2.5 bln in L&T JV case 

--SC: MMRDA to not deposit INR 2.5 bln; co to give undertaking on property 

--SC: If arbitral award upheld to L&T JV, MMRDA to give money in 8 wks

--CONTEXT: L&T JV won INR-2.5-bln arbitral award against MMRDA

 

NEW DELHI – The Supreme Court Monday modified the Bombay High Court's order in October asking Mumbai Metro Rail Corp. Ltd to deposit INR 2.51 bln for staying an arbitral award favouring L&T-STEC JV Mumbai. Instead, the apex court asked Mumbai Metro to give an undertaking with particulars of its immovable property. 

 

There will be a 'charge' on the immovable property of Mumbai Metro for securing the amount to be payable to L&T-STEC, the apex court said. If the arbitral award in favour of Mumbai Metro is finalised, Mumbai Metro will pay the total amount in eight weeks, the top court said.

 

The case has its genesis in a contract for the design and construction of specific stations and tunnels in the Mumbai Metro Rail Project. The bid for the contract had been made by the L&T-STEC JV in May 2015, before the introduction of Goods and Services Tax. 

 

In June, the arbitral tribunal directed Mumbai Metro to pay INR 2.51 billion to L&T-STEC, of which INR 212.6 million was related to cost variation due to additional work carried out beyond the scope of the project, and INR 2.30 billion was attributable to the claims towards reimbursement for the impact of GST introduction for the period between July 1, 2017, and September 30, 2022.

 

Challenging the arbitral award, Mumbai Metro moved the high court. The petitioner sought an unconditional stay without any requirement to make any deposit of any component of the amounts awarded. The petitioner said that the arbitral award was "ex facie perverse" and had "made such obvious blunders" that no reasonable arbitral tribunal could have taken such an approach. However, the high court refused an unconditional stay to Mumbai Metro. Against the high court's order, the petitioner moved the apex court.

 

At 1236 IST, shares of L&T were down 0.5% at INR 4,050.30 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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