BBT Elevated Road Pvt. Ltd versus Kolkata Metropolitan Development Authority & Ors.

Summary of the Case: The Calcutta High Court vide judgment and order dated 17th October, 2023 has refused to interfere with the order dated 15th September, 2022 passed by the Learned Commercial Court At Alipore in MS No. 8 of 2020 (BBT Elevated Road Pvt. Ltd vs Kolkata Metropolitan Development Authority & Ors.) holding that the discretion was rightly exercised by the Learned Trial Court in rejecting an application filed for the acceptance of counter claim belatedly by KMDA. The Civil Revision petition was consequently dismissed.

BBT Elevated Road Pvt. Ltd. had instituted a money suit before the Learned Commercial Court, Alipore being MS No. 8 of 2020 for recovery of its claims to the tune of Rs. 351 crores (approx.) against Kolkata Metropolitan Development Authority (KMDA). KMDA had entered appearance and filed its written statement on 18th January, 2021 thereby reserving their rights to claim damages by filing counter claim. Written Statement was accepted vide order dated 16th December, 2021. Issues were framed and an Advocate Commissioner was appointed for recording evidence on commission. However, during the course of recording evidence, an application was filed by KMDA seeking leave to file their Counter Claim to the tune of Rs. 72.211 crores. The said application, upon contested hearing, was rejected by the Learned Trial Court holding that KMDA has not been able to make out any case of exceptional circumstance which would warrant allowing acceptance of counter claim at such belated stage.

A Bench comprising of Hon’ble Justice Shampa Sarkar vide judgement and order dated 17th October, 2023 held that the order passed by the Learned Trial Court is neither erroneous on account of non consideration of material evidence nor contrary to law. The onus was on KMDA to satisfy the Court that due to very unavoidable circumstances, the counter claim could not be filed within a reasonable period. No explanation, whatsoever, was provided in the application for acceptance of the counter claim. The discretion was rightly exercised by the Learned Trial Court. The revisional application was thus dismissed.

BBT Elevated Road Pvt. Ltd. was represented by the team of Fox & Mandal led by Mr. Debanjan Mandal, Partner, Mr. Sanjiv Kr. Trivedi, Partner, Ms. Iram Hassan, Principal Associate, Mr. Sanket Sarawgi, Senior Associate and Ms. Mahima Cholera, Senior Associate. Mr. Abhrajit Mitra, Senior Advocate, assisted by Mr. Satadeep Bhattacharyya, led the arguments on behalf of BBT Elevated Road Pvt. Ltd.

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