The Madras High Court on Thursday restrained Chennai Metro Rail Limited (CMRL) from encashing till September 2 a bank guarantee for ₹117.51 crore, provided by Mumbai-based Afcons Infrastructure Limited, on the grounds that there were “serious defects” in the underground stations constructed by it, and that the company had left the works incomplete.
Justices R. Subbiah and C. Saravanan ordered maintenance of status quo till September 2, when they would be taking up for hearing an appeal preferred by Afcons Infrastructure, challenging an order passed by Justice N. Sathish Kumar last week refusing to restrain CMRL from encashing two bank guarantees — one for ₹117.51 crore and the other for ₹25.77 crore.
Even before the single judge could decide the case, the CMRL claimed to have encashed the bank guarantee of ₹25.77 crore. Appearing on behalf of Afcons, senior counsel G. Masilamani told the court that there were strong grounds for appeal, and hence, the company must be provided with interim protection until its appeal could be taken up for final hearing.
On his part, senior counsel P.H. Arvindh Pandian, representing CMRL, said he was ready to argue the appeal anytime, and insisted that the interim protection be given only for a limited period of time. After hearing the arguments, the judges ordered maintenance of status quo for a limited period of two weeks.
You have reached your limit for free articles this month.
To get full access, please subscribe.
Already have an account ? Sign in
Show Less Plan
Subscription Benefits Include
Today's Paper
Find mobile-friendly version of articles from the day's newspaper in one easy-to-read list.
Faster pages
Move smoothly between articles as our pages load instantly.
Unlimited Access
Enjoy reading as many articles as you wish without any limitations.
Dashboard
A one-stop-shop for seeing the latest updates, and managing your preferences.
Personalised recommendations
A select list of articles that match your interests and tastes.
Briefing
We brief you on the latest and most important developments, three times a day.
*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.
A letter from the Editor
Dear subscriber,
Thank you!
Your support for our journalism is invaluable. It’s a support for truth and fairness in journalism. It has helped us keep apace with events and happenings.
The Hindu has always stood for journalism that is in the public interest. At this difficult time, it becomes even more important that we have access to information that has a bearing on our health and well-being, our lives, and livelihoods. As a subscriber, you are not only a beneficiary of our work but also its enabler.
We also reiterate here the promise that our team of reporters, copy editors, fact-checkers, designers, and photographers will deliver quality journalism that stays away from vested interest and political propaganda.
Suresh Nambath