Chennai Metropolitan Water Supply and Sewerage Board v. Chennai Water Desalination Limited
Arb Appln/440/2025 · 2025-03-19
Abdul Quddhose
Transfer Petitionbody2025
DailyLaw.ai
[ 2025 DAILYLAW 36567 (MAD) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 36567 (MAD) · dailylaw.ai ]
Judgment text
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Arb. Appln. No.440 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 19.03.2025 CORAM THE HON'BLE Mr. JUSTICE ABDUL QUDDHOSE Arb. Appln. No.440 of 2025 Chennai Metropolitan Water Supply and Sewerage Board, Rep. by its Managing Director ... Applicant Vs M/s.Chennai Water Desalination Ltd., Rep. by its Authorised Signatory Mr.Denny C. Kurissingal ... Respondent For Applicant : Mr.Gautam S. Raman For Respondent : Ms. Hema Srinivasan
ORDER This application has been filed under Section 9 of the Arbitration and Conciliation Act seeking for an interim direction to direct the respondent to hand over the possession of desalination plant at Kattupalli, Minjur and consequently permit the applicant to begin operations and run the plant.
2. There seems to be a dispute between the applicant and the 1/5 https://www.mhc.tn.gov.in/judis
Arb. Appln. No.440 of 2025 respondent arising out of a contract involving a desalination plaint. Earlier, the respondent was operating the desalination plant, which is the subject matter of the dispute. However the applicant had terminated the contract of the respondent. In view of the same, disputes arose between the parties. In view of the public interest involved, this application has been filed pending arbitration seeking for an interim direction as stated supra.
3. The learned counsel for the applicant would submit that this Court in its earlier orders had granted permission for the applicant to enter into the respondent's premises viz., the subject desalination plant, along with their officials and inspect the machineries available there and determine for themselves the possibility of them running the plant. Those orders were passed by this Court on 13.11.2024 and on
26.11.2024. Therefore, according to the learned counsel for the respondent they have no objection for the applicant running the desalination plant. However, the learned counsel for the respondent would submit that the respondent will be making a claim against the applicant in the arbitration, since according to the respondent, the applicant had committed breach of contract. Without prejudice to the rights and contentions to make their claim against the applicant, the 2/5 https://www.mhc.tn.gov.in/judis
Arb. Appln. No.440 of 2025
learned counsel for the respondent on instructions would submit that the respondent has got no objection for the applicant entering the premises of the desalination plant and operating the same on their own. In fact as pointed out by the learned counsel for the respondent in the orders passed by this Court earlier on 13.11.2024 as well as on 26.11.2024, the applicant has been permitted to take control of the desalination plant. However, in order to enable the applicant to take control of the desalination plant, the assistance of the respondent is required. The
learned counsel for the respondent would submit that certain obligations have to be complied with by the applicant and certain obligations will have to be complied with by the respondent as per the terms and conditions of the contract. She would also submit that dues of labourers are not paid. Since the respondent has not raised any serious objection for permitting the applicant to take control of the subject desalination plant and running on their own, this application has to be allowed as prayed for. However, the said application has to be allowed, without prejudice to the rights and contentions of the respondent to raise all objections before the Arbitral Tribunal to be constituted in the near future. However, in view of the fact that public interest is involved the respondent will have to render all assistance to the applicant for taking 3/5 https://www.mhc.tn.gov.in/judis
Arb. Appln. No.440 of 2025 control of the desalination plant. If at all they have any difficulty, they can express the same, through a written letter sent to the applicant. But however at all times, the respondent shall co-operate with the applicant for effectively taking control of the subject desalination plant and also running it.
4. The learned counsel for the respondent also states that certain movables lying in the premises of the desalination plant belongs to the respondent. The respondent is granted liberty to remove the same after proper identification with the consent of the applicant's authorised officials.
5. With the aforesaid directions, this application is disposed of. 19.03.2025 Index: Yes/ No Speaking order / Non speaking order Neutral citation : Yes / No vsi2 4/5 https://www.mhc.tn.gov.in/judis
Arb. Appln. No.440 of 2025 ABDUL QUDDHOSE, J. vsi2 Arb. Appln. No.440 of 2025 19.03.2025 5/5 https://www.mhc.tn.gov.in/judis