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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ALOK ARADHE, CJ, ARIF S. DOCTOR, J
Systra Mva Consulting (India) Pvt. Ltd. – Appellant
Versus
Mumbai Metropolitan Region Development Authority – Respondent
| Table of Content |
|---|
| 1. contract termination notice (Para 2 , 3 , 4 , 5 , 6 , 7) |
| 2. petitioner argues against termination (Para 8 , 9 , 10 , 11) |
| 3. mmrda defends termination (Para 12 , 13 , 14 , 15) |
| 4. court reviews legal principles (Para 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24) |
| 5. principles of fairness (Para 25 , 26 , 27 , 28 , 29 , 30 , 31) |
| 6. impugned notice quashed (Para 32 , 33) |
JUDGMENT :
1. Rule. With consent of the learned counsel for the parties, Rule is made returnable forthwith. With consent of learned counsel for respective parties, heard finally.
I. FACTS :-
4. MMRDA published a tender notice on 11th February, 2020 inviting bids for appointment of General Consultant for the purposes of design, assistance in procurement, construction, management supervision for Mumbai Metro Lines - 5 (Thane-Bhiwandi-Kalyan), 7A [Andheri (East)-CSIA] and 9 (Mira Bhayander). The consortum, viz. Systra-SMCIPL of which the petitioner is a part, submitted its bid on 16th June, 2020 of Rs.90,76,68,320/-.
6. The petitioner, on 18th July, 2024, sought extension of term of contract which was granted on 4th October, 2024 by which the term of appointment of the petitioner was extended upto 31st December, 202
The State must act fairly and cannot terminate contracts arbitrarily without providing reasons, even in contractual matters.
The court reinforced that the existence of an arbitration clause limits the scope for judicial intervention in contractual disputes involving the state.
Public authorities must act fairly and cannot arbitrarily terminate contracts without justification, reinforcing the legitimacy of expectations within public-private partnerships.
A terminated contract cannot be revived by administrative order, and any such action must adhere to principles of transparency and fairness as mandated by public procurement laws.
A terminated contract cannot be revived by administrative order, and the principles of transparency and fairness must be upheld in public procurement processes.
The main legal point established in the judgment is the importance of abiding by the dispute resolution mechanism provided in the Agreement for resolving disputes arising from the contract. The Court....
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