Bengaluru, Apr 5 (PTI) KRIDE on Sunday said it has invoked and encashed performance bank guarantees worth Rs 57 crore issued on behalf of L&T.
K-RIDE, a joint venture between the Government of Karnataka and the Ministry of Railways, was created to boost rail infrastructure projects in the state.
The company is currently tasked with executing the flagship Bengaluru Suburban Rail Project (BSRP) along with a few other projects.
“Consequent to the Arbitration Tribunal’s decision to reject the request made by L&T to injunct the invocation of performance guarantees, K-RIDE successfully invoked and encashed on Saturday two performance bank guarantees, totalling about Rs 57 crore, issued by M/s YES Bank on behalf of L&T for BSRP Corridors 2 and 4,” The Rail Infrastructure Development Company (Karnataka) Limited said in a release.
“In an important decision, the Arbitration Tribunal upheld K-RIDE’s stand in executing the civil works for the two corridors, where L&T defaulted and later terminated the agreements unilaterally and illegally, not in accordance with the terms and conditions of the contracts,” it added.
The release noted that earlier, L&T had terminated the agreements for Corridors 2 and 4 of the BSRP and obtained a stay against the encashment of bank guarantees from the commercial court.
L&T also invoked the arbitration clause of the agreement, leading to the constitution of an arbitration tribunal comprising retired Supreme Court and High Court judges to examine L&T’s claims and K-RIDE’s counterclaims.
The commercial court later referred all related matters to the tribunal, the release said. PTI KSU SSK
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.