Realty firm Parsvnath Ltd Tuesday said the Delhi High Court has upheld its claim of Rs 1,034 crore in a dispute with Rail Land Development Authority related 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 crore. 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.
In a regulatory filing, Parsvnath Tuesday informed that the division bench of the Delhi High Court dismissed the plea of RLDA, which had challenged a single judge order that upheld arbitral award of Rs 1,034 crore. “We have perused all the submissions and findings of the court and find no infirmity in the decision of the learned Single Judge. Accordingly, the appeal stands dismissed,” the division bench said in its recent judgement while dismissing RLDA’s appeal.
The division bench of Justices G S Sistani and Sangita Dhingra Sehgal, in its March 14 order, has dismissed the RLDA’s appeal and upheld the arbitral award dated November 25, 2017 and the judgment of single Judge of Delhi High Court dated April 3, 2018, whereby the claim of Rs 1,034.53 crore made by the company and PRLPPL was upheld and payment of this amount was directed to be made by RLDA along with 4 per cent interest per annum from July 15, 2015 till the date of payment.
The counsel for RLDA had contended before the division bench that the findings of the arbitral tribunal and the order of the single judge were “perverse” and liable to be set aside. In 2010, Parsvnath through an auction had bought this land located at Sarai Rohilla-Kishanganj here from RLDA and in May 2013, a development agreement was executed between RLDA and PRLPPL. The company had paid over Rs 1,150 crore 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.