Delhi HC hauls up Axis Bank for breach of undertaking in Pune-Satara toll road case

The Delhi High Court has restrained Axis Bank from replacing PS Toll Road Pvt Ltd (PSTR) as the concessionaire of the Pune-Satara toll road project.

Delhi HC has found Axis Bank in breach of its own undertaking before the court.

The court in its order has said that Axis Bank is bound by the commitment it made in court in February 2021 and then in March 2021 not to go ahead with the replacement of the concessionaire in the PS highway project, without the settlement of the court. .

According to the court, Axis Bank’s commitment was unconditional and therefore cannot rely on any event in the concession agreement or the replacement 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 Axis Bank’s appointment of a new concessionaire for the project despite the stay of the proceedings by the Delhi High Court in March 2021.

PS Toll Road Pvt Ltd, in its appeal before the high court, claimed that Axis Bank breached its own commitment given to the court in 2021 that it will not finalize the tenders or award the contract to a third party, replacing thus 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 lanes of 140 km of the stretch between Pune and Satara in Maharashtra on BOT basis. The project is now complete.

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