Bombay HC Rejects Road Contractor’s Plea Challenging BMC’s Termination Order

Mumbai: In a setback to Roadway Solution India Infrastructure Pvt Ltd (RSIIPL), the Bombay High Court has rejected its plea challenging the BMC’s decision to terminate its contract for concretisation of 297 roads in the south Mumbai.

The counsel for RSIIL mentioned the plea before a division bench of Justices Gautam Patel and Kamal Khata on Tuesday seeking urgent hearing in its plea.

Following HC order, the BMC had given a personal hearing to RSIIL pursuant to its notice last year for terminating its contract for failing to commence construction work on time.

The HC, on January 17, had directed the BMC to appoint a senior civic officer to hear on the reply filed by RSIIL on the termination notice issued to it and also on the show cause notice as to why nearly Rs52 crore penalty cannot be imposed on it for not complying with the contract terms. The BMC had to take final decision by January 31, which had continued the stay till then.

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The BMC, after giving it a hearing, passed a detailed 12-page order, giving reasons to uphold the termination. It also imposed a Rs 64 crore penalty along with an order to forfeit a two percent contract deposit and 10 percent earnest money deposit made earlier by the contractor. The BMC order said: “The petitioners failed to show due diligence to comply with the various conditions of the contract and to achieve the progress as stipulated in the contract within time schedule.”

BMC To Issue Fresh Tender For Concretisation

The contractor approached the HC challenging this termination order by the BMC. However, the HC refused to interfere with the same and even did not stay the decision. The BMC is hence free to issue fresh tender for the road concretisation work.

The contract was awarded to RSIIL on January 4 2023, but the same was terminated on November 9 stating that the contractor has not commenced the work even after 8-10 months of awarding the contract. RSIIL had challenged this before the HC, which on November 30 last, restrained the BMC from taking any coercive action against the firm.