High Court Upholds Rs 296 Crore Arbitral Award for JITF Urban Waste Management

The Punjab and Haryana High Court supports an arbitral award of over Rs 296 crore for JITF Urban Waste Management, rejecting appeals from Jalandhar and Moga municipal corporations. The court ruled that government entities receive no special treatment under arbitration laws and must adhere to contractual obligations.

The Punjab and Haryana High Court has upheld an arbitral award exceeding Rs 296 crore in favor of JITF Urban Waste Management (Jalandhar) Ltd, rejecting appeals from the municipal corporations of Jalandhar and Moga. The decision reinforces the application of standard arbitration laws to government entities.

The legal battle traces back to a 2011 contract between JITF and the municipal bodies focused on a solid waste management project. Disputes arising from the partnership led to arbitration, where the tribunal ordered substantial payments, including interest, from the municipalities.

The municipalities sought a stay on the tribunal's decision, initially granted unconditionally by a lower court. The high court, however, required the award amount to be deposited in full for any stay to continue, which neither corporation fulfilled. Their subsequent appeals were dismissed, emphasizing the need for adherence to commercial contracts.

(With inputs from agencies.)