Case Note & Summary
The petitioners, MEP Infrastructure Developers Ltd., Ozoneland Private Limited, Mrs. Anuya J. Mhaiskar, and Mr. Manoj Upadhyay, filed a writ petition challenging the termination of a Concession Agreement dated 31st March 2010 by the respondents, MSRDC Sea Link Ltd., Maharashtra State Road Development Corporation Ltd., and the State of Maharashtra. The agreement pertained to the operation and maintenance of the Bandra-Worli Sea Link. The petitioners failed to pay the monthly revenue share to the respondents, leading to a notice of termination dated 28th July 2022. The petitioners argued that the termination was illegal and that they were entitled to relief under force majeure due to the COVID-19 pandemic. The respondents contended that the petitioners were in breach of the agreement and that the termination was valid. The court held that the termination was valid as the petitioners had failed to pay the revenue share, and the force majeure clause did not apply. The court also held that disputed questions of fact regarding breach of contract cannot be adjudicated in writ jurisdiction and the petitioners should seek remedy before a civil court or arbitration. The writ petition was dismissed.
Headnote
A) Contract Law - Termination of Concession Agreement - Non-Payment of Revenue Share - Article 21.2 of Concession Agreement - The petitioners failed to pay monthly revenue share to the respondents, leading to termination of the agreement. The court held that the termination was valid as the petitioners were in breach of the agreement and the force majeure clause did not apply. (Paras 1-23) B) Writ Jurisdiction - Contractual Disputes - Alternative Remedy - The court held that disputed questions of fact regarding breach of contract cannot be adjudicated in writ jurisdiction and the petitioners should seek remedy before a civil court or arbitration. (Paras 1-23)
Issue of Consideration
Whether the termination of the Concession Agreement by the respondents for non-payment of revenue share was valid and whether the petitioners are entitled to relief under writ jurisdiction.
Final Decision
Writ petition dismissed. Termination of Concession Agreement upheld.
Law Points
- Termination of contract for non-payment
- Force majeure
- Breach of contract
- Concession agreement
- Revenue share
- Writ jurisdiction
- Contractual disputes
