Karnataka HC rejects L&T’s compensation claim on metro delays

BENGALURU, May 24: The Karnataka High Court on Saturday rejected an appeal by Larsen & Toubro (L&T) in its dispute with Bangalore Metro Rail Corporation Limited (BMRCL) over delays in building metro stations.
Earlier, an arbitration tribunal had ordered BMRCL to pay L&T nearly 29 crore as compensation for the project delays. However, the High Court said L&T cannot claim any compensation because the contract clearly stated that if delays happen due to BMRCL, L&T would only get more time to finish the work, but no money.
The court also pointed out that L&T had accepted several extensions without asking for money at those times. It said, “The appellant has, on each occasion, accepted the extension of time without compensation/damages… Having acted on the extension of time, it could not have submitted request for damages/compensation on a subsequent date.”
The court said that the arbitrator had overstepped by ignoring these clear contract terms, stating, “The arbitrator being a creature of the agreement, must operate within the four corners of the agreement and cannot travel beyond it.”
The contract was for building three elevated metro stations at Yeshwanthpur, Soap Factory, and Mahalaxmi in Bengaluru.
This ruling means BMRCL will not have to pay L&T for the delays in the project.
(UNI)

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