+
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
Infrastructure Urban

Annette Gregg Named WTCA’s First Female CEO

World Trade Centers Association (WTCA) has appointed Annette Gregg as Chief Executive Officer, making her the first woman to lead the organisation in its 57-year history.Gregg assumed the role from October 5 and will lead WTCA from its recently established global headquarters at One World Trade Center in New York City. The association connects more than 300 World Trade Center locations across nearly 100 countries and territories.As CEO, Gregg will provide strategic leadership to WTCA and its global staff, working with the Board of Directors and members to advance business priorities, strengthe..

Next Story
Resources

Isprava Appoints Sanjay Sethi as Strategic Advisor

Isprava Group has appointed Dr Sanjay Sethi as Strategic Advisor to the business, with a focus on Lohono Stays and Isprava Hospitality.Sethi brings more than 37 years of experience across hospitality operations, development, ownership, strategic growth and capital markets. He will work closely with the Group on strategy, growth and the development of its hospitality business.The appointment comes as Isprava Group expands its integrated ecosystem spanning luxury homes, hospitality, private membership and end-to-end homeowner services.Nibhrant Shah, Managing Director & Co-CEO, Isprava Group, sai..

Next Story
Infrastructure Energy

SunBridge BioEnergy Starts Ethanol Production in Seoni

SunBridge BioEnergy, the bioenergy arm of SunBridge Group, has commenced commercial production at its grain-based fuel-grade ethanol manufacturing facility in Seoni, Madhya Pradesh. The Seoni plant has a production capacity of 300 kilolitres per day and a storage capacity of 11,000 kilolitres. Spread across approximately 117,560 sq m, the facility marks SunBridge BioEnergy’s entry into commercial ethanol production. The company is also expanding its ethanol portfolio with a 400 KLD facility in Raipur, Chhattisgarh, which is expected to become operational soon. Once commissioned, SunBridge ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code