In a set back to Kalpataru Projects International Ltd, the Bombay High Court rejected its petition seeking to appoint an arbitrator to resolve a dispute over pending dues with the BMC for additional work in relation to the construction of the Ghatkopar-Mankhurd Link Road flyover (GMLR). On January 25, 2016, the BMC issued an e-tender to invite bids for the project, three foot overbridges and a vehicular underpass for Rs 313.85 crore.
The contract was awarded to Kalpataru on December 26 that year and the work order was issued within two days. The work was to be completed in 30 months. However, there was a delay due to various factors, including the BMC asking it to carry out additional works. The project was completed on July 25, 2021 and inaugurated on August 1, 2021.
Kalpataru claimed that after the inauguration, the BMC asked it to carry out additional variation works and extended the contract period to September 30, 2021. The company carried out the additional work and the project was granted a certificate of completion. The dispute arose when Kalpataru raised various claims in accordance with the contract, which were rejected by the BMC chief engineer.
A three-member committee was appointed in October 2021 to settle the dispute but it ruled against Kalpataru on April 26, 2022. Kalpataru invoked the arbitration clause against the BMC and approached the HC when it did not receive any reply from the civic body. While Kalpataru’s counsels Naresh Thacker and Tvisha Desai argued that a modified clause had an arbitration agreement, BMC counsel PG Lad opposed the plea. The court, too, noted that the modified clause“does not make any reference to arbitration or appointment of an arbitrator”.
