Arbitrator to decide Gammon, Chennai Metro dispute: court

Our Bureau Updated - January 24, 2018 at 06:25 AM.

Former to be awarded damages if contract termination ruled illegal, void

Gammon bagged a ₹1,947-cr contract along with Mosmetrostroy in 2011,to design and construct seven underground stations and tunnelling work

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.

Published on July 27, 2015 17:29