MIAL Settles Mumbai Airport Dispute With HDIL
New Delhi: GVK Power and Infrastructure on Monday said its subsidiary, MIAL, has amicably settled the dispute with HDIL over termination of pact for slum rehabilitation project at the Mumbai international airport.
Mumbai International Airport Pvt Ltd (MIAL), where GVK is the majority stakeholder, operates the Mumbai airport and the dispute has been going on with HDIL since termination of the agreement in February 2013.
In a regulatory filing, GVK Power said an "amicable settlement" has been reached between MIAL and HDIL and that the Arbitral Tribunal passed an award today on the terms of the settlement agreement.
All the disputes between HDIL and MIAL "are thus settled on the terms contained in the settlement agreement", GVK Power said.
"The parties have signed a settlement agreement dated September 8, 2016, vide which they have irrevocably and unconditionally withdrawn all their respective claims and counter-claims against each other in the present arbitration proceedings," it said in a filing to BSE.
Taking into account that considerable time has lapsed from the time the proceedings commenced, the parties held discussions on various issues to put an end to the ongoing arbitration and arrived at an "amicable settlement", the filing said.
In a separate filing, Housing Development and Infrastructure Ltd (HDIL) also informed the exchange about the settlement with MIAL.
"As per the order, there will not be any liability (ies)/claim(s) or damages in future to either party with regard to the airport rehabilitation project," HDIL said.
MIAL had entered into an agreement with HDIL in October 2007 for the slum rehabilitation project at Chhatrapati Shivaji International Airport (CSIA) in Mumbai.
However, the pact was terminated by MIAL in February 2013.
Challenging the termination of the pact, HDIL invoked the arbitration clause and moved a petition before the Bombay High Court.
According to the filing, the plea was rejected by the court, then by a division bench of the court and also by the Supreme Court.
An Arbitral Tribunal was constituted, and during a hearing on July 25, it urged both the parties to seriously attempt a settlement of the present dispute, the filing said.
Shares of GVK Power rose nearly 6.76 per cent to Rs 6.95 on BSE at the close.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
