Delhi HC has found Axis Bank in breach of its own undertaking given before the court.
The court in its order has said that Axis Bank is bound by its undertaking given to the court in February 2021 and then in March 2021 that it will not go ahead with the substitution of the concessionaire in the PS Toll Road project, without the court's nod.
According to the court, Axis Bank's undertaking was unconditional, and therefore it cannot rely upon any event under the Concession Agreement or the Substitution Agreement, to appoint a new concessionaire in the project.
PS Toll Road Pvt Ltd (PSTR), the concessionaire of the Pune-Satara Toll Road project, had challenged the appointment of a new concessionaire in the project by the Axis Bank despite a stay on the process by the Delhi High Court in March 2021.
PS Toll Road Pvt Ltd, in its appeal before the high court, contended that Axis Bank was in breach of its own undertaking given before the court in 2021, that it will not finalise the bids or award the contract to a third party, thereby substituting the PS Toll Road Pvt Ltd.
The court has issued notice to Axis Bank and the matter will be heard on September 28.
PS Toll Road Pvt Ltd is a subsidiary of Reliance Infrastructure Ltd. and was awarded the contract for six laning of 140 KM of the stretch between Pune and Satara in Maharashtra on a BOT basis. The project is now complete.
(IANS)
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