M/S. MSK PROJECTS (I) (JV) LTD versus STATE OF RAJASTHAN & ANR.

M/S. MSK PROJECTS (I) (JV) LTD versus STATE OF RAJASTHAN & ANR.

The Supreme Court held that District Judge and High Court erred by considering an issue not raised before the arbitral tribunal. Contractor was entitled to collect toll fee from Bharatpur-Deeg section as it was part of the project. Claim for compensation for non-execution of phase II was unjustified, as appellant had not invested for that phase. Appeals disposed, contractor entitled only to Rs. 26.34 lakhs for delay in issuing notification with 10% interest.

Parties
Appellant: MSK Projects (I) (JV) Ltd; Respondent: State of Rajasthan; Respondent: Another Respondent
Jurisdiction
India
Judgment Date
21 July 2011
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal From High Court
Outcome
Appeals disposed of.
Legal Topics
Delay in Government Notification, Scope of Concession Agreement, Collection of Toll Fee, Arbitral Tribunal Jurisdiction, Award of Interest, Compensatory Nature of Toll, Breach and Compensation
Contract Law Arbitration Law Public Infrastructure Delay in Government Notification Scope of Concession Agreement Collection of Toll Fee Arbitral Tribunal Jurisdiction Award of Interest +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 38 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

MSK Projects (I) (JV) Ltd

Appellant

State of Rajasthan

Respondent

Another Respondent

Respondent

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal From High Court

Legal Issues

  1. 1 Whether it was mandatory/necessary under the agreement/pre-bid understanding for the State to issue a notification barring vehicles through Bharatpur city
  2. 2 Whether the contractor had a right to collect toll fee on the Bharatpur-Deeg patch of the road
  3. 3 Whether the rate of interest could be reduced from 18% to 10% by the courts below

Ratio Decidendi

The Supreme Court held that District Judge and High Court erred by considering an issue not raised before the arbitral tribunal. Contractor was entitled to collect toll fee from Bharatpur-Deeg section as it was part of the project. Claim for compensation for non-execution of phase II was unjustified, as appellant had not invested for that phase. Appeals disposed, contractor entitled only to Rs. 26.34 lakhs for delay in issuing notification with 10% interest.

Court Disposition

Appeals disposed of.

Orders

  • Matter remitted to arbitral tribunal to determine entitlement regarding Bharatpur-Deeg section and effect of non-execution of phase II.
  • Contractor entitled only to Rs.26.34 lakhs for delay in notification, with 10% interest.