Rapid metro in Gurugram: The Punjab and Haryana High Court has adjourned the hearing on the dispute over the handover of Rapid Metro Rail Project in Gurugram to September 17.
The Punjab and Haryana High Court has adjourned the hearing on the dispute over the handover of Rapid Metro Rail Project in Gurugram to September 17. Till the next date of hearing, Rapid MetroRail Gurgaon (RMGL) and Rapid MetroRail Gurgaon South (RMGSL) — the two IL&FS entities currently operating the Gurugram metro — will continue to run it, the court ordered.
“The court has found that disputes between the parties may be resolved by negotiation for which both would require some time,” the order stated. Following disputes with Haryana Urban Development Authority (HUDA) earlier this year, the two companies had served termination notices on June 7, giving 90-days notice.
The companies were therefore set to exit the project on September 9.
As a part of the resolution plan for IL&FS chalked out by the Uday Kotak-led board, both RMGL and RMGSL fall in the “red” category and are unable to service any debt obligations.
According to the directions given by National Company Law Appellate Tribunal (NCLAT) on the resolution of IL&FS group companies, the Gurugram metro exit plan had to be approved by a retired high court judge.
On September 6, retired Justice DK Jain, mandated to oversee the IL&FS resolution process, allowed the RMGL to hand over the metro project to HUDA. Following this, HUDA had moved the Punjab and Haryana High Court on the matter.
The September 9 High Court order states that the two companies will continue operating Gurugram metro until September 17, midnight.
“Till the next date of hearing, i.e. 17.09.2019, the respondent shall operate and manage the Rapid Metro Rail on Gurgaon on both the lines but subject to reimbursement of the insurance and operations and maintenance cost by the petitioners (HUDA) for this period,” the court ordered.