Municipal Corporation of Jodhpur has been ordered by an arbitrator to pay a sum of Rs 8.45 crore to a private company engaged for door-to-door waste management for the civic body.
In its order, the arbitrator, former justice N N Mathur has held the Municipal Corporation of Jodhpur (JMC) culpable of "reneging" upon the conditions of agreement with the company.
While disposing of the claim of recovery of outstanding amount, justice Mathur has ordered the JMC to pay Rs 8,4559,709 to the company.
JMC will also have to pay interest thereon at the rate of 9 per cent calculating from December 2009 until the payment.
According to a rough estimate, the total amount, the JMC has been ordered to pay to the company, would amount to Rs 12 crore including the interest.
Besides this, the JMC would also have to pay the company Rs 4 lakh towards litigation expenses.
Sanjeet Purohit, counsel for the company said that the company had moved a petition in the Rajasthan High Court charging the JMC of "unjustified termination" of the contract and issuing notice of forfeiture of the bank guarantee of the company breaching the contract conditions.
Latter both the sides had agreed to solve the matter through arbitration, for which the former justice of the Rajasthan High Court (N N Mathur) had been appointed.
In his decision, Justice Mathur has not only prohibited the JMC from forfeiting the bank guarantee of the company but also has held the JMC officials responsible for the waste collection disruption.
