[Urbanstudy] Petition in High Court for winding up Bangalore Development Authority

Vinay Baindur yanivbin at gmail.com
Wed May 31 13:01:25 CDT 2017


http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/petition-in-high-court-for-winding-up-bda/article18662967.ece
Petition in High Court for winding up BDA

<http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/petition-in-high-court-for-winding-up-bda/article18662967.ece#>
<http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/petition-in-high-court-for-winding-up-bda/article18662967.ece#>
<http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/petition-in-high-court-for-winding-up-bda/article18662967.ece#>
<http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/petition-in-high-court-for-winding-up-bda/article18662967.ece#>
<http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/petition-in-high-court-for-winding-up-bda/article18662967.ece#>
<http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/petition-in-high-court-for-winding-up-bda/article18662967.ece#>
<http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/petition-in-high-court-for-winding-up-bda/article18662967.ece#>
SPECIAL CORRESPONDENT
MAY 31, 2017 00:00 IST
UPDATED: MAY 31, 2017 03:37 IST



IL&FS cites its failure to honour an award of an arbitration tribunal

The Karnataka High Court on Tuesday ordered issue of notices to the State
government and the Bangalore Development Authority (BDA) on a petition
seeking winding up of the authority for not making full payment to a
private company as per an award passed by an arbitration tribunal.

Justice Ravi Malimath, while ordering issue of notices, also asked the BDA
counsel to inform by Friday whether the authority would make the remaining
payment to the petitioner — IL&FS Engineering and Construction Company Ltd
— as per the award passed by the arbitrator.

In its petition, IL&FS has said that it had been given the contract to
construct a six-lane ring road, with two-lane service road on either side,
between kilometre 51.880 and 56.70 connecting Mysuru Road and Magadi Road
in 2005. The project was completed in 2007. As a dispute arose over the
work during execution and the claims made by the company were disputed by
the BDA, the same were referred to an arbitration tribunal by the High
Court in 2012.

Pending amount

While BDA had paid Rs. 31.49 crore in two instalments of the total award of
Rs. 36.05 crore, the authority is yet to pay the remaining money despite
several reminders and in violation of the tribunal’s award, which is
binding on the authority, claims IL&FS.

As the BDA is a ‘body corporate’ as per Section 3(2) of the BDA Act, the
authority is a ‘corporate entity’ in the eyes of the law akin to any
corporation of State or Central entity as per the law laid down by the
Supreme Court, the petitioner-company contended. As the BDA is unable to
discharge its liabilities and in the larger interest of the public, it is
liable to be wound up by applying the same principle of winding up a
corporation under the Companies Act, 1956, IL&FS stated.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mail.mail.sarai.net/pipermail/urbanstudygroup_mail.sarai.net/attachments/20170531/a741fc71/attachment.html>


More information about the Urbanstudygroup mailing list