Bombay High Court Partly Upholds Metro One Arbitral Award
RAILWAYS & METRO RAIL

Bombay High Court Partly Upholds Metro One Arbitral Award

The Bombay High Court partly allowed a petition filed by the Mumbai Metropolitan Region Development Authority (MMRDA) challenging an arbitral award in favour of Mumbai Metro One Private Limited (MMOPL) over the Versova to Ghatkopar corridor. Justice Sandeep Marne upheld some elements of the 2023 majority award while setting aside several high value claims. The court applied severability.

MMOPL was formed as a special purpose vehicle under the concession agreement dated seven March 2007 on a Build Own Operate Transfer model, with Reliance Infrastructure holding 69 per cent, Veolia five per cent and the authority 26 per cent. The dispute concerned claimed escalation of project costs allegedly caused by delays. A three member tribunal in August 2023 delivered a two to one award granting MMOPL claims aggregating to Rs 9.92 bn, while a dissenting arbitrator rejected the claims and MMRDA challenged the award under Section 34.

On 10 June a High Court bench directed MMRDA to deposit Rs 11.69 bn for a conditional stay, and the Supreme Court on 14 July 2025 subsequently stayed that interim order subject to the authority depositing half of the awarded amount. The authority deposited nearly Rs 5.6 bn and the Supreme Court clarified that its order would not preclude the High Court from finally deciding the challenge. Interim orders influenced the parties' positions while the final contest proceeded.

Justice Marne sustained MMOPL entitlement to Rs 350 mn for deductions from viability gap funding, Rs 131.6 mn for rent at Wadala, Rs 304.8 mn for a steel bridge at Andheri and Rs 1.6322 bn for system works. However, the court set aside claims for additional overheads of Rs 1 bn, financing and interest expenses of Rs 1.25 bn and opportunity costs exceeding Rs 230 mn as unsustainable. The court declined litigation costs and reduced arbitration costs from Rs 10 mn to Rs 5 mn.

The court allowed intervention by National Asset Reconstruction Company Limited (NARCL). It ordered deposits moved to project escrow but stayed transfer for eight weeks.

The Bombay High Court partly allowed a petition filed by the Mumbai Metropolitan Region Development Authority (MMRDA) challenging an arbitral award in favour of Mumbai Metro One Private Limited (MMOPL) over the Versova to Ghatkopar corridor. Justice Sandeep Marne upheld some elements of the 2023 majority award while setting aside several high value claims. The court applied severability. MMOPL was formed as a special purpose vehicle under the concession agreement dated seven March 2007 on a Build Own Operate Transfer model, with Reliance Infrastructure holding 69 per cent, Veolia five per cent and the authority 26 per cent. The dispute concerned claimed escalation of project costs allegedly caused by delays. A three member tribunal in August 2023 delivered a two to one award granting MMOPL claims aggregating to Rs 9.92 bn, while a dissenting arbitrator rejected the claims and MMRDA challenged the award under Section 34. On 10 June a High Court bench directed MMRDA to deposit Rs 11.69 bn for a conditional stay, and the Supreme Court on 14 July 2025 subsequently stayed that interim order subject to the authority depositing half of the awarded amount. The authority deposited nearly Rs 5.6 bn and the Supreme Court clarified that its order would not preclude the High Court from finally deciding the challenge. Interim orders influenced the parties' positions while the final contest proceeded. Justice Marne sustained MMOPL entitlement to Rs 350 mn for deductions from viability gap funding, Rs 131.6 mn for rent at Wadala, Rs 304.8 mn for a steel bridge at Andheri and Rs 1.6322 bn for system works. However, the court set aside claims for additional overheads of Rs 1 bn, financing and interest expenses of Rs 1.25 bn and opportunity costs exceeding Rs 230 mn as unsustainable. The court declined litigation costs and reduced arbitration costs from Rs 10 mn to Rs 5 mn. The court allowed intervention by National Asset Reconstruction Company Limited (NARCL). It ordered deposits moved to project escrow but stayed transfer for eight weeks.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code