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Wednesday, July 15, 2020

Court stays MC’s takeover of Chandigarh’s waste processing plant

The court has extended the time period of its earlier issued orders for one month, in which MC's move to terminate the agreement between Jaypee Associates and MC was stayed for three months on March 12.

Written by Saurabh Prashar | Chandigarh | Published: June 21, 2020 2:15:09 am
Chandigarh MC, waste processing plant, Chandigarh news, Punjab news, indian express news However, MC Commissioner KK Yadav, Mayor Raj Bala Malik along with senior officials Saturday visited the garbage processing plant, changed its name to Solid Waste Plant run by MCC, Property of Municipal Corporation, Chandigarh. (Representational)

A local court Saturday stayed the Chandigarh MC’s decision of taking over the Solid Waste Management garbage plant from the operative authority, Jaypee Associates, citing that the order issued by the Corporation on March 5, 2020, through which possession of the plant was undertaken yesterday, was the prima-facie violation of agreement signed between Jaypee Associates and Municipal Corporation.

The MC had taken possession of the garbage processing plant Friday. The court has extended the time period of its earlier issued orders for one month, in which MC’s move to terminate the agreement between Jaypee Associates and MC was stayed for three months on March 12.

The court of ADJ Vijay Singh, issued the orders. The Jaypee Associates management had approached the court against the move of Chandigarh Municipal Corporation on Friday. A copy of the orders were put in the public domain, Saturday. MC had also filed caveat in the court upon which Caveator issued a notice to the MC.

MC Commissioner, KK Yadav, said, “Jaypee Associates had violated several terms and conditions of the agreement signed between the two parties in 2005. We received the stay orders today. We have already filed a caveat in the local court. We will examine the stay orders legally. If a situation arises, we will approach the Punjab and Haryana High Court.”

In the detailed orders, the Additional District and Session judge observed, “Keeping in view of totality of the facts and circumstances of the case no serious prejudice would be caused to the respondent-corporation if the interim order dated 12.03.2020 is extended for another one month from today to enable the learned Arbitrator to pass an appropriate order under Section 17 of the Arbitration Act. It is ordered accordingly. Application stands disposed off.”

On March 12, 2020 the court had issued the orders that MC’s decision of March 5 to terminate the agreement between MC and Jaypee was illegal, arbitrary and against the certain provisions of the agreement signed between the two parties, which is against equity and natural justice. The orders had also allowed the petitioner to take appropriate steps to appoint the arbitrator. The order passed on Friday further stated, “It is not in dispute that in compliance of order dated 12.03.2020 petitioner (Jaypee Associates) has invoked the Arbitration/Dispute Resolution Mechanism on 11.05.2020 as contained in clause 11.3 of the Implementation Agreement dated 30.12.2005 but no interim measure has been ordered in compliance of Section 17 of the Arbitration Act. In order dated 12.03.2020, it is already observed that order dated 05.03.2020 has been passed by the respondent-corporation prima-facie in violation of clause 7 and 8 of the agreement dated 30.12.2005 and that applicant has invested huge amount in crores in the said plant, which is still in operation.”

However, MC Commissioner KK Yadav, Mayor Raj Bala Malik along with senior officials Saturday visited the garbage processing plant, changed its name to Solid Waste Plant run by MCC, Property of Municipal Corporation, Chandigarh.

“An XEN along with a SDO team, two sanitation inspectors, Junior Engineers and other MC staff were deputed for the plant’s functioning,” said Yadav. The entire garbage processing plant was also sanitised.

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