Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Constitution of India: Art. 226 – Power of High Courts to issue writ |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Constitution of India: Art. 226 – Power of High Courts to issue writ – Award of Concession Agreement to two companies- RMGL and RMSGL respectively by Haryana Shehri Vikas Pradhikaran-HSVP for developing metro rail – Meanwhile direction by State of Haryana that all metro projects would be handled by the first respondent – Thereafter, issuance of termination notice by RMGL and RMSGL to HSVP to bring an end to the Concession Agreement upon expiry of 90 days from delivery of the termination – Thereafter, HSVP issued their termination notices to RMGL and RMGSL, directing them to hand over the projects to HMRTC – However, since RMGL and RMGSL were entities of a group categorised in the Red category, they were to seek approval before transferring or encumbering any assets – Subsequently, RMGL and RMGSL permitted to handover possession and control of metro project to HSVP pursuant to termination of the Agreement – On the same day, writ petition u/Art. 226 by HSVP and HMRTC challenging the notice of termination on the ground that it was against public interest – High Court granted interim direction for continuance of the operation of metro project for 30 days, which was further extended and during which the debt due under the financing documents in terms of concession agreements was to be determined by the auditor and then HSVP was to deposit 80 % of the debt due as determined in an Escrow Account in terms of Concession Agreement, which would be subject to order of NCLAT or any other court – On appeal, held: Exercise of writ jurisdiction by the High Court u/Art. 226 was justified since non-interference, which would have inevitably led to the disruption of rapid metro lines for Gurgaon, would have had disastrous consequences for the general public – However, ordinarily the High Court in its jurisdiction u/Art. 226 would decline to entertain a dispute which is arbitrable – Directions contained in the High Court’s consent order makes it clear that the audit team appointed by CAG was to conduct a financial audit of the debt due and to examine the scope of the audit, the audit being completed within 30 days and 80 % of the debt due being deposited within 30 days after the receipt of the audit report; and that the rest of the disputes between the parties arising out of the audit report were to be agitated in arbitration – HSPV and HMRTC could not avoid compliance with the High Court’s Consent Order since they willingly agreed to pay 80% of the debt due as per the auditor’s findings – HSPV to deposit 80% of the amount within 3 months – Amount to be maintained in the Escrow Account subject to the orders of NCLAT or any other competent authority – RMGL and RMGSL on the one hand and HSVP on the other hand, at liberty to pursue their rights and remedies in pursuance of the arbitration clause. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2021 INSC 221 |
Petitioner | Rapid Metrorail Gurgaon Limited Etc. |
Respondent | Haryana Mass Rapid Transport Corporation Limited & Ors. |
SCR | [2021] 3 S.C.R. 639 |
Judgement Date | 2021-03-26 |
Case Number | 925-926 |
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