GVK Power and Infrastructure Ltd. said it had settled the dispute between itself and Housing Development and Infrastucture Ltd (HDIL) related to the slum rehabilitation activities near the Mumbai International Airport.
¨The parties have signed a settlement agreement dated 8th September, 2016 vide which they have irrevocably and unconditionaly withdrawn all their respective claims and counter- claims against each other,¨ said GVK Power and Infrastructure.
The disputes stems from an agreement signed between MIAL and HDIL in 2007 for implementation of a slum rehabilitation project at the location of the Mumbai International Airport. GVK cancelled the agreement in 2013 over the terms and conditions.
The matter was referred to an arbitration panel, which has accepted the latest settlement.
“During the Arbitration Proceedings of the Arbitral Tribunal on July 25, 2016, urged both the Parties to attempt a settlement of the present dispute. In deference to the above direction of the Arbitral Tribunal, both the Parties have held discussions on various issues to put an end to the ongoing arbitration and have arrived at an amicable settlement by way of a Settlement Agreement,” the companies said.
“Accordingly, the Parties have signed a Settlement Agreement dated 8th September, 2016 vide which they have irrevocably and unconditionally Withdrawn all their respective claims and counter-claims respectively, against each other in the present arbitration proceedings.”
The Arbitral Tribunal passed an Award on 19th September, 2016, on the terms of the Settlement Agreement dated 8th September, 2016. All the disputes between HDIL and MIAL are thus settled on the terms contained in the Settlement Agreement dated 8th September, 2016, the companies added.
They, however, did not specify if any financial consideration has to be paid by either of the parties.
“As per the order there will not be any liability (ies)/claim(s) or damages in future to either party with regards to the Airport Rehabilitation Project.”