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Toll project: Delhi HC to hear RInfra arm plea against Axis Bank 

PS Toll Road Pvt Ltd (PSTR), a subsidiary of RInfra, had alleged that the lender was bound by its unconditional undertaking given to the HC that it will not appoint a new concessionaire in the project and, therefore, it cannot rely upon any event under the 2010 Concession Agreement or the 2015 Substitution Agreement to do so.

Toll project: Delhi HC to hear RInfra arm plea against Axis Bank 
Delhi High Court. (Photo source: IE)

The Delhi High Court will hear on Wednesday a plea by a Reliance Infrastructure (RInfra) arm seeking to restrain Axis Bank from substituting it as the concessionaire for the Pune-Satara Toll Road Project.

PS Toll Road Pvt Ltd (PSTR), a subsidiary of RInfra, had alleged that the lender was bound by its unconditional undertaking given to the HC that it will not appoint a new concessionaire in the project and, therefore, it cannot rely upon any event under the 2010 Concession Agreement or the 2015 Substitution Agreement to do so.

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PSTR was awarded the contract for six-laning of 140 km stretch between Pune and Satara in Maharashtra on BOT basis.

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In breach of an undertaking given by Axis Bank in March last year, the lender is now seeking to finalise awarding of a contract to a third party, thereby substituting PSTR, senior counsel NK Kaul, appearing for the RInfra firm, told the single judge bench of Justice Anup Jairam Bhambhani.

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