[ecis2016.org] The SC has dismissed an appeal of the Rail Land Development Authority against an order asking it to pay Rs 1,034 crores to Parsvnath Ltd
The Supreme Court has dismissed the appeal of the Rail Land Development Authority (RLDA), challenging a Delhi High Court order asking it to pay Rs 1,034 crores to realty firm Parsvnath Ltd, in relation to a project in the national capital. In February 2016, Parsvnath Developers had terminated its development agreement with RLDA, due to a title dispute related to a 38-acre land stretch that the company had bought for Rs 1,651 crores.
You are reading: SC dismisses RLDA plea against arbitral award of Rs 1,034 crores to Parsvnath Ltd
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Parsvnath Rail Land Project Pvt Ltd (PRLPPL), a special purpose vehicle (SPV) created to develop this project, had gone into the arbitration process to settle the issue. A division bench of the Delhi High Court dismissed the RLDA plea, which had challenged a single-judge bench order that upheld the arbitral award of Rs 1,034 crores, in favour of the real estate major. The RLDA moved the apex court, which also dismissed the appeal on July 8, 2019. “We see no reason to interfere with the impugned order of the High Court. The special leave petition is, accordingly, dismissed,” a bench of justices L Nageswara Rao and Hemant Gupta said.
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The high court had dismissed the RLDA’s appeal and had upheld the arbitral award of November 25, 2017. As per the arbitral award, the claim of Rs 1,034.53 crores, made by the company and PRLPPL, was upheld and payment of this amount was directed to be made by RLDA along with 4% interest per annum, from July 15, 2015, till the date of payment. In 2010, Parsvnath, through an auction, had bought this land located at Sarai Rohilla-Kishanganj from RLDA and in May 2013, a development agreement was executed between RLDA and PRLPPL. The company had paid over Rs 1,150 crores against the purchase of this land parcel. Parsvnath had proposed to develop luxury apartments, commercial/ shopping areas, railway housing, railway service building and common facilities, hospital/school and other amenities in this project.
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