HC Upholds Rs 2.96 Bn Arbitral Award in Favour of JITF
WATER & WASTE

HC Upholds Rs 2.96 Bn Arbitral Award in Favour of JITF

The Punjab and Haryana High Court has recently upheld an arbitral award of over Rs 2.96 billion in favour of JITF Urban Waste Management (Jalandhar) Ltd, dismissing appeals filed by the Jalandhar and Moga municipal corporations.

A bench comprising Chief Justice Sheel Nagu and Justice Sanjiv Berry ruled that government bodies cannot seek special treatment under the Arbitration and Conciliation Act, 1996, and are required to comply with the same legal standards as private parties while seeking a stay on arbitral awards.

JITF had entered into a contract in 2011 with the two municipal corporations for a solid waste management project covering the Jalandhar and Ferozepur clusters. Following disputes between the parties, the matter was referred to arbitration.

In January 2022, the arbitral tribunal directed the Jalandhar Municipal Corporation to pay Rs 2044.4 million and the Moga Municipal Corporation to pay Rs 922.9 million, along with applicable interest. While both civic bodies challenged the award and sought a stay, the High Court had earlier ruled that the stay would remain valid only if the entire award amount was deposited.

As neither corporation deposited the amount despite multiple opportunities, their objections were dismissed in January 2024. The subsequent appeals have now also been rejected, with the court observing that arbitration is intended to provide a speedy and fair resolution, and government entities cannot evade statutory obligations after entering commercial contracts.

The S&A team representing JITF was led by Manoj K. Singh, Gunita Pahwa and Rahul Saraswat from S&A Law Offices.

The Punjab and Haryana High Court has recently upheld an arbitral award of over Rs 2.96 billion in favour of JITF Urban Waste Management (Jalandhar) Ltd, dismissing appeals filed by the Jalandhar and Moga municipal corporations. A bench comprising Chief Justice Sheel Nagu and Justice Sanjiv Berry ruled that government bodies cannot seek special treatment under the Arbitration and Conciliation Act, 1996, and are required to comply with the same legal standards as private parties while seeking a stay on arbitral awards. JITF had entered into a contract in 2011 with the two municipal corporations for a solid waste management project covering the Jalandhar and Ferozepur clusters. Following disputes between the parties, the matter was referred to arbitration. In January 2022, the arbitral tribunal directed the Jalandhar Municipal Corporation to pay Rs 2044.4 million and the Moga Municipal Corporation to pay Rs 922.9 million, along with applicable interest. While both civic bodies challenged the award and sought a stay, the High Court had earlier ruled that the stay would remain valid only if the entire award amount was deposited. As neither corporation deposited the amount despite multiple opportunities, their objections were dismissed in January 2024. The subsequent appeals have now also been rejected, with the court observing that arbitration is intended to provide a speedy and fair resolution, and government entities cannot evade statutory obligations after entering commercial contracts. The S&A team representing JITF was led by Manoj K. Singh, Gunita Pahwa and Rahul Saraswat from S&A Law Offices.

Next Story
Infrastructure Transport

Pune To Build Nine Km Link Road Between Highways

The Pune Municipal Corporation (PMC) has decided to appoint an expert to plan the development of a nine km long, 60 metre wide road from Khadi Machine chowk to Wadki chowk as an extension to the Katraj-Kondhwa road to link the Mumbai-Satara and Pune-Solapur national highways. The scheme is intended to divert heavy vehicle traffic away from the city and improve access between the two arterial routes. The project has been prioritised by the PMC and forms part of a larger set of schemes in which 19 roads have been identified for development at a combined cost of Rs 9.82 billion (bn) to address c..

Next Story
Infrastructure Transport

Barabanki Bahraich Six Lane Highway Approved in Uttar Pradesh

The Uttar Pradesh government has approved construction of a new six-lane highway linking Barabanki and Bahraich as part of National Highway 927, and the cabinet has cleared the project. The alignment will pass through Mustafabad and Kaiserganj and extend for about 101.5 km, creating a key corridor for local and long-distance movement. The National Highways Authority of India will oversee the work and has signalled the scheme is intended to strengthen regional connectivity and cross-border access to Nepal. The project carries an estimated total cost of Rs 69,690 million, equivalent to Rs 69.69..

Next Story
Infrastructure Transport

Toll At Kharegaon Likely As Highway Upgrade Nears Completion

A section of the highway at Kharegaon has undergone an upgrade and is approaching completion, and authorities have indicated plans for a toll to be introduced once works finish. The project has focused on strengthening the carriageway, improving drainage and upgrading intersections to enhance safety and capacity. Officials have said the toll will be used to recover construction costs and fund ongoing maintenance. The upgrade included resurfacing of the pavement, widening of certain stretches and installation of modern signage and lighting to reduce accident risk. Contractors completed most ma..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement