Bengaluru, April 5 KRIDE announced on Sunday that it had invoked and cashed performance bank guarantees worth Rs 57 crore issued on behalf of L&T.
K-RIDE, a joint venture between the Government of Karnataka and the Ministry of Railways, was created to promote rail infrastructure projects in the state.
The company is currently responsible for executing the flagship Bengaluru Suburban Rail Project (BSRP), along with a few other projects.
"Following the Arbitration Tribunal's decision to reject L&T's request to prevent the invocation of performance guarantees, K-RIDE successfully invoked and cashed two performance bank guarantees, totaling approximately Rs 57 crore, issued by M/s YES Bank on behalf of L&T for BSRP Corridors 2 and 4, on Saturday," said The Rail Infrastructure Development Company (Karnataka) Limited in a release.
"In a significant decision, the Arbitration Tribunal upheld K-RIDE's position in executing the civil works for the two corridors, where L&T defaulted and later unilaterally and illegally terminated the agreements, contrary to the terms and conditions of the contracts," it added.
The release noted that earlier, L&T had terminated the agreements for BSRP Corridors 2 and 4 and obtained a stay against the encashment of bank guarantees from the commercial court.
L&T also invoked the arbitration clause of the agreement, leading to the formation of an arbitration tribunal comprising retired Supreme Court and High Court judges to examine L&T's claims and K-RIDE's counterclaims.
The commercial court later referred all related matters to the tribunal, the release said.