Discontinuing Contract Without Giving Reasons Arbitrary: Bombay HC Quashes MMRDA's Contract Termination Notice For Mumbai Metro Consultancy
Live LawThe Bombay High Court has set aside a notice issued by the Mumbai Metropolitan Region Development Authority that terminated a tender contract with Systra MVA Consulting Pvt Ltd for the appointment of General Consultant for Mumbai Metro Line, ruling that the cancellation was arbitrary and unreasonable. Systra MVA Consulting Pvt Ltd thus challenged the MMRDA's notice terminating the contract before the High Court. The Court rejected MMRDA's view and stated that judicial review is available despite alternate remedy being available, if the termination of the contract was arbitrary and unreasonable. This Court is not precluded from exercising the power of judicial review merely on the ground of availability of alternate remedy in case this Court finds the action of termination of contract to be arbitrary and unreasonable.” The Court thus quashed the MMRDA's notice and directed it to take a fresh decision after hearing Systra and by way of a speaking order.
History of this topic
Court cancels Mumbai development body's termination of French firm's contract
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Bombay HC quashes notice of contract termination to French firm by MMRDA; govt. orders probe
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