Particle.news
Download on the App Store

Bombay High Court Ties Stay of Rs 250.82 Crore Award to Eight-Week Deposit

The order preserves review of a pre-GST contract dispute under Section 34.

Overview

  • Justice Somashekhar Sundaresan on October 10 declined an unconditional stay and required MMRCL to deposit the full award with accrued interest within eight weeks for the stay to operate.
  • L&T–STEC JV may withdraw the deposited amount along with accruals upon furnishing a full unconditional bank guarantee as per High Court rules.
  • A majority arbitral tribunal directed payment of Rs 229.56 crore as GST reimbursement for July 2017 to September 2022 and Rs 21.26 crore for additional work.
  • The MMRCL-nominated arbitrator dissented, limiting GST reimbursement to Rs 134.42 crore and concluding Rs 27.09 lakh was refundable on additional works.
  • The court found the award neither facially untenable nor vitiated by patent illegality and noted MMRCL’s claims of perversity, price-breakup, and witness treatment will be examined in the pending challenge.