The Bombay High Court has directed the Mumbai Metropolitan Region Development Authority (MMRDA) to deposit ₹1,169 crore by July 15 as a condition to stay the arbitral award in favour of Mumbai Metro One Pvt Ltd (MMOPL) — the operator of Metro Line 1 — which stems from a 2023 tribunal ruling. The award initially totaled ₹992 crore for cost overruns and contractual disputes, which has climbed to ₹1,169 crore with interest until May 31. Seeking relief under Section 34 of the Arbitration and Conciliation Act, MMRDA had asked for an unconditional stay, claiming errors in the award related to rent assumptions, project delays, and cost escalations. However, Justice Somasekhar Sundaresan concluded that MMRDA had not made a prima facie case and underscored that the amended arbitration law doesn’t permit automatic stays. He also noted MMRDA’s involvement in key financial decisions and found no evident arbitrariness in the tribunal’s ruling. The court will hear the matter again on June 17, pending the official order and MMRDA’s subsequent response.

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