SC modifies Bombay HC order, MMRCL spared ₹250-crore upfront payment

The Supreme Court on Monday modified a Bombay High Court order that had refused to grant an unconditional stay on the execution of a ₹250.82-crore arbitral award issued in favour of L&T–STEC JV Mumbai against the Mumbai Metro Rail Corporation Ltd (MMRCL). The award relates to a long-running dispute over a contract to design and construct several Metro stations and tunnels in Mumbai.

A bench led by Chief Justice Surya Kant held that the High Court’s earlier directive, requiring MMRCL to deposit the entire decretal amount as a precondition for stay, was not legally necessary. Allowing MMRCL’s appeal in part, the court eased the condition and issued revised directions:

1. MMRCL will not be required to deposit the entire decretal amount or furnish a bank guarantee for it.
   
2. The corporation must instead file an undertaking detailing its properties in Mumbai, along with a commitment to pay the full decretal amount within eight weeks if L&T ultimately succeeds.
3. ⁠There should be a charge on the property, description of which should be given in the undertaking.
   

On October 25, the Bombay High Court had directed MMRCL to deposit the arbitral award, around ₹250 crore plus interest, into the HC registry within eight weeks to secure a stay on its execution. The order came after MMRCL challenged the arbitral tribunal’s June 16, 2025 award and sought a stay to prevent L&T–STEC JV from initiating recovery proceedings.