Bombay HC rejects contractors plea against BMC termination of contract

The BMC had passed the order after Justice Gautam S Patel-led bench had directed its Commissioner to nominate a high ranking officer to provide a hearing to RSIL, which was denied earlier while terminating the contract in November, last year.

The BMC officer was told to hear the firm’s reply to its termination and show cause notice as to why a nearly Rs 52 crore penalty cannot be imposed on it for not complying with the contract terms. The HC said that not hearing the firm despite offering it the same was ‘unnaceptable.’’

The HC had continued to stay the termination till the BMC decided the matter or January 31, whichever was later.

The BMC, in its January 25 order held that the contractor RSIL did not have ability or interest in actually carrying out works and therefore the contract awarded to it was terminated. Aggrieved by the BMC order, RSIL approached the HC urging to quash the civic body’s order, The bench rejected its plea and said the parties can resolve the issue through arbitration.

Meanwhile, on January 17, the BMC told the HC that it has cancelled a fresh tender, worth over Rs 1,362.34 crore, issued on December 4 to concretise roads in Mumbai.