Telangana High Court Fines HMDA Rs 5 Lakhs For Dishonour Of Arbitration
The Telangana High Court has imposed Rs 5 lakh costs on the Hyderabad Metropolital Development Agency for non-compliance of arbitration award conditions with regard to an agreement with Cyberabad Expressway Ltd.
Hyderabad:The Telangana High Court has imposed Rs 5 lakh costs on the Hyderabad Metropolital Development Agency for non-compliance of arbitration award conditions with regard to an agreement with Cyberabad Expressway Ltd.
The HMDA had signed a concession agreement dated 17.08.2007 with Cyberabad Expressway for design, construction and maintenance of an eight-lane access-controlled expressway under Phase II-A Programme, as an extension of the Outer Ring Road to Hyderabad from Kollur to Patancheru, from KM 12 to 23.7, on a build, operate and transfer (annuity) basis.
Due to a dispute, the case went to arbitration and the award was passed on February 27 2019. Cyberabad Expressway was awarded Rs 140,89,01,800 for claim and Rs 39,50,00,000as bonus annuity along with interest of 12 per cent per annum for a specified period.
The HMDA disputed the award and filed several cases before the commercial court and the High Court. Faulting the attitude of the HMDA, the High Court opined that the award-holder had been deprived of the fruits of the award since 2019 and has instead been taken for a misconceived ride across courts for more than six years.