Bombay High Court Partly Upholds Metro One Arbitral Award

02 Mar 2026 CW Team

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.

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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.

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