TaxTMI 
TaxTMI 
2019 (9) TMI 1584
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....common. However, for the sake for convenience, the facts are being extracted from the 1st Petition i.e. CWP No. 24949 of 2019. Shorn of unnecessary details, the concession contracts were entered into between petitioner No.2-Haryana Shehri Vikas Pradhikaran ['for short 'the HSVP'](formerly known as Haryana Urban Development Authority) with Rapid MetroRail Gurgaon Ltd. [for short 'the RMGL'] and with Rapid MetroRail Gurgaon South Ltd. [for short 'the RMGSL'] on 09.12.2009 and 03.01.2013 respectively for the development of Metro rail link from Delhi Metro Sikanderpur Station on MG Road to NH-8 and from Delhi Metro Sikanderpur Station on MG Road to Sector 56, Gurugram. Both the contracts were terminated by RMGL & RMGSL on 07.06.2019, to take effect w.e.f. 08.09.2019 after the expiry of 90 days, whereas, HSVP terminated both the contracts on 26.08.2019 forthwith. RMGL & RMGSL are the subsidiary companies of Infrastructure Leasing and Finance Limited [for short 'IL&FS'] which is before the National Company Law Appellate Tribunal [NCLAT] in the proceedings initiated under the provisions of the Companies Act, 2013. On 08.08.2019, NCLAT directed the....
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....re, September 9, 2019 and HSVP is obliged to take possession and control of the Metro link forthwith. There is no explanation as why HSVP did not take any steps to ensure smooth handing and taking over of the project by RMGL to HSVP, all this while. In so far as the question of validity of the termination notice issued by RMGL to HSVP is concerned, the issue is to be decided at an appropriate forum and not by the undersigned in terms of the afore-extracted direction by the Hon'ble NCLAT. 21. Accordingly, RMGL is permitted to hand over the possession and control of Metro link from Delhi Metro Sikanderpur Station on MG Road to NH-8 to HSVP, pursuant to the termination of the Concession Contract dated December 9, 2009, on or before, September 9, 2019. Needless to add that the said permission is without prejudice to the rights and contentions of the contesting parties to seek appropriate remedies in law to assail the validity and consequences of termination of the Concession Contract by both of them. It is, however, clarified that HSVP, shall be free to engage the service of RMGL, at the mutually discussed/negotiated charges to run the Metro link till, such time, app....
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.... counsel for the parties under signatures of the Special Secretary of this Court. A photocopy of this order be placed on the file of connected case." Order dated 09.09.2019 "We propose to pass this order in both the cases i.e. CWP Nos.24949 and 24951 of 2019. Although both the contracts dated 03.01.2009 and 03.01.2013 executed for both the lines of the Rapid Metro Rail at Gurgaon have been terminated by both the parties i.e. HSVP (previously known as HUDA") on 26.08.2019 (forthwith) and the RMGSL by giving 90 days notice with effect from 07.06.2019 which comes to an end on 09.09.2019. But the operations are still continuing under the orders of this Court dated 06.09.2019 till the midnight of 09.09.2019. After lengthy arguments addressed by counsel for the parties, the Court has found that the dispute between the parties may be resolved by negotiation for which they both would require some time and, therefore, the hearing of this case is deferred to 17.09.2019 and the order of stay granted on 06.09.2019 is also extended till 17.09.2019 till midnight. During the course of hearing, learned senior counsel appearing on behalf of the responden....
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.... Order dated 18.09.2019 "Learned senior counsel appearing on behalf of the Rapid Metrorail Gurgaon Ltd. (RMGL) and the Rapid Metrorail Gurgaon South Ltd. (RMGSL) has made the following proposals:- i) RMGL/RMGSL will continue to operate their Metro Link for a period of 30 days (i.e. until October 16, 2019) during which (a) the 'debt due' as per financing documents in terms of the concession agreement may be determined by an auditor appointed by the Hon'ble Court; and (b) the process for transfer of the Metro Links may be undertaken under the supervision of two Hon'ble (retired) High Court Judges, one being nominated by RMGL/RMGSL and one being nominated by HSVP; ii) During this extended period since 9 September 2019 RMGL/RMGSL will act as agents of HSVP, RMGL and RMGSL will be responsible for all liabilities arising on account of their gross negligence and fraud during this time; iii) The conditions set forth in (i) and (ii) above are subject to an undertaking from HSVP that once the debt due is determined by the auditor appointed by the Hon'ble Court at least 80% of the 'debt due' so determined shall be deposited in the esc....
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....Auditor General of India "(CAG)" may be given the assignment of financial audits under the order of the Hon'ble Court to ascertain financial aspects including determination of over invoicing into the project. HMRTC/HSVP are agreeable for the appointment of CAG subject to full cooperation by RMGL and RMGSL and all documents and other information pertaining to the 'debt due' may be provided to CAG or the auditor so appointed with a copy to HMRTC and HSVP. (iii) Thirdly, during the transition period i.e the period during which O&M of the said Metro lines shall be transferred from RMGL and RMGSL to DMRC, RMGL & RMGSL have proposed to act as an agent of the HMRTC and HSVP during the said period. In this respect it is stated that it will lead to further complications. HMRTC and HSVP have transferred the amount of insurances and the entire control will remain with the RMGL and RMGSL during this period. RMGL and RMGSL shall continue their O&M in terms of concession agreements and the HMRTC and HSVP have no objection that RMGL/RMGSL may receive all the revenues arising from O&M and incur all expenses therefrom itself and pay the same as is being done currently. In other....
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....resh, IAS, Managing Director, HMRTC and Chief Administrator, HSVP and Mr. Rajiv Banga, Managing Director, RMGSL and Director RMGL that:- I) RMGL and RMGSL have decided to continue the Operation and Maintenance (for short "O&M") of both the metro lines for the period of 30 days w.e.f. 16.09.2019. In the meantime, process of transfer of control and management of operation and maintenance of both the Metro links shall start w.e.f. 23.09.2019. The operation and maintenance by RMGL and RMGSL shall be in terms of the order dated 09.09.2019 passed by this Court. It is needless to mention that in case of any clarification/modification, the parties shall be at liberty to approach this Court by moving an appropriate application(s) in these petitions. Both the parties have requested to appoint two retired Hon'ble Judges of the High Court on payment of suitable remuneration to supervise the aforesaid transfer and in this regard petitioners have suggested the name of Hon'ble Mr. Justice Kailash Gambhir (Retd.) and the respondent(s) has suggested the name of Hon'ble Mr. Justice V.K. Gupta (Retd.). Keeping in view the magnitude of work invo....