
PUNE, June 11: The Pune Municipal Corporation PMC has decided to file a civil suit in the district court here next week contesting the decision by the sole arbitrator in the controversial Parvati-Sarasbaug ropeway case, directing the civic body to pay a compensation of Rs 2.97 crore to the Bombay Cable Car Company BCCC.
The sole arbitrator, Karnataka High Court former Chief Justice M L Pendse, had held the PMC responsible for 8220;breach of contract8221; by disallowing the BCCC from installing the ropeway. In a ruling on March 31 this year, he had directed the PMC to pay a compensation of Rs 2.97 crore with interest at the rate of 18 per cent to the aggrieved company.
When the issue had come up for discussion at the civic general body meeting on the same day, the then municipal commissioner Ramanath Jha had recommended that the civic body should either work out a compromise with the company or contest the ruling.
Majority of the elected members had felt that the PMC should contest the ruling. Later, the standing committee had sanctioned the estimated expenses for seeking legal counsel in the matter.
When contacted by media persons here today, PMC8217;s legal advisor Ravindra Thorat informed them that the administration had appointed advocate Rohit Kapadia from Mumbai and Vijay Mujumdar from Pune as its defense counsels in the case. They would file a civil suit in the Pune district court next week, he added.
Thorat claimed the PMC8217;s case was sound as it had never consented to the appointment of Justice Pendse as sole arbitrator in the matter. The BCCC had not even taken the mandatory sanction of Bombay High Court for his appointment. The company8217;s claim to damages with a high rate of interest was hypothetical since financial losses claimed were based upon its projections for the future, he added.