The Madras High Court has asked both Gammon India and Chennai Metro Rail Ltd (CMRL) to suggest names of experts who could nominate an arbitrator, to solve the dispute over termination of Gammon’s contract by CMRL.
The court has asked both the parties to consider public importance and interest. The matter will go to arbitration after the proceedings are over.
Arbitrator’s call The arbitrator will decide whether the termination is illegal and void, and if yes, award damages to Gammon, said the company’s Counsel.
Gammon told the court on Monday that it was unable to find a ‘suitable’ expert with the requisite experience, and asked CMRL to suggest names.
Justice S Vimala asked both parties to choose two mutually acceptable names from a list of experts, to be provided by CMRL. These two persons will, in turn, select one person for arbitration.
The Court has posted the matter for the hearing to Friday. Gammon’s contract was terminated by CMRL on July 13 due to delay in completion of the tunnelling project after its joint venture partner Mosmetrostroy abandoned the project two months ago.
Gammon’s response Gammon bagged a ₹1,947-crore contract along with its Russian partner in 2011 to design and construct seven underground stations and tunnelling work as part of the metro rail project.
Senior Counsel PS Raman, arguing for Gammon, told the Court that with the Russian partner leaving the project, the Gammon had suggested to CMRL that it would bring in an alternative company to undertake the tunnelling work.
However, CMRL has asked Afcons, which is handling another section of CMRL contract, to do the work.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.