The Bombay High Court overturned a notice by the Mumbai Metropolitan Region Development Authority (MMRDA) that had terminated a contract with Systra MVA Consulting (India) Pvt Ltd, which was providing consultancy services for the Mumbai Metro project. The court highlighted that MMRDA’s decision to discontinue the services without providing reasons was arbitrary and lacked fairness, emphasizing that governmental entities must adhere to principles of fairness even in contractual matters.
Chief Justice Alok Aradhe and Justice Arif Doctor presided over the case and noted the crucial role of Systra MVA Consulting in the supervision, design, and management of key metro routes including Thane-Bhiwandi-Kalyan, Andheri-CSIA, and Mira Bhayander. Despite an extension granted until December 2026, MMRDA issued a termination notice on January 3, 2025, claiming it had the right to end the contract without specific reasons based on general contractual conditions.
The court rejected this claim, stating that the MMRDA does not possess the authority to act without fairness or reasonable cause.
