HC Adjourns Gammon Plea Challenging Suspension of its Work to July 24

Gammon had entered into a joint venture with Russian firm Mosmetrostoy and won the contract on March 8, 2011 for construction of seven underground stations.

Published: 21st July 2015 12:56 AM  |   Last Updated: 21st July 2015 12:56 AM   |  A+A-

By PTI

CHENNAI: The Madras High Court today adjourned to July 24 a petition by Gammon India challenging suspension of its work by Chennai Metro Rail Limited (CMRL) with regard to underground tunnels as part of the project.

Justice S Vimala adjourned the matter after recording CMRL's counter in which it submitted that it was beyond the Power of the Court to suggest that the parties (Gammon and CMRL) should try to settle the matter in public interest.

The Judge in her order said "the submission is made without understanding the role and responsibilities of the court and also the scope of Alternative Dispute Resolution. However the matter shall be heard on merits on July 24."

Gammon had entered into a joint venture with Russian firm Mosmetrostoy and won the contract on March 8, 2011 for construction of seven underground stations.

Six bank guarantees were given to the tune of Rs 15 crore and the scheduled duration for completion of work was fixed at 1,430 days from April 2, 2011.

However, due to several infirmities such as delay in handing over the site, the company had sought extension of time till March 4, 2018, petitioner said.

Without considering the "genuine" difficulty faced by the company, CMRL refused to consider the request. In the meantime, the Russian partner abandoned the work and went back.

Citing the exit of the Russian partner, CMRL has issued a notice to Gammon to terminate the contract and ordered suspension of work.

Hence, Gammon moved the Court with a plea to grant an ex-parte injunction against CMRL from encashing or recovering the bank guarantees furnished by it.

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