In Brief
A consortium of banks financing the Kundli-Manesar-Palwal Expressway sought protection of their outstanding dues (₹1419.15 crores) when the concessionaire was substituted following a Court order. The banks claimed the new concessionaire and HSIIDC (the authority) had breached the tripartite substitution agreement by not ensuring debt takeover. The Court did not grant the banks' requests to amend the new concession agreement, but instead referred all disputes to arbitration under the contract's arbitration clause. As interim protection, the Court directed that 80% of toll collections from the completed section be held in an escrow account with the lead bank, available to the arbitral tribunal for just disbursement after hearing all parties."
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