Statutory bodies can't opt different ways to clear dues, says Telangana HC
1 year, 2 months ago

Statutory bodies can't opt different ways to clear dues, says Telangana HC

Deccan Chronicle  

Hyderabad: The Telangana High Court on Wednesday said the Hyderabad Metropolitan Development Authority and the Hyderabad Growth Corridor Limited cannot demand differential treatment in paying money owed to contractors for works done by them. The bench was dealing with an appeal filed by the HMDA challenging the orders of a Commercial Court, which had directed the HMDA and the HGCL to pay Rs 180 crore along with 12 per cent interest to Cyberabad Expressway Ltd, a contractor, for completing the works allotted by HMDA. In 2019, the Arbitration Authority directed the HMDA to pay the contract amount of Rs 140.89 crore and a bonus annuity of Rs 39.50 crore, totaling Rs 180 crore along with interest in four months. After considering the arguments, the High Court directed HMDA to deposit 50 per cent of the award money within six weeks and made it clear that its observations in the order were made solely for the purpose of deciding the Interlocutory Application and had no bearing on the merits of the case.

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