T.KAILASH Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The applicant herein is an infrastructure company, which is engaged in execution of various infrastructure projects in India and abroad. The respondent, which is the Government of A.P., had proposed the construction of a bridge over the Gauthami branch of River Godavari between Yanam and Yedurlanka in East Godavari District under Build-Operate-Transfer (BOT) model. The said contract was awarded to the applicant and an agreement was executed between the parties on 6/10/1999. The essential terms of the contract were that the total cost of the project, which was estimated at Rs.110.00 crores, was to be recovered by the applicant by way of subsidy of Rs.69.00 crores granted by the Government of A.P., and by collection of toll charges on the vehicles, passing through the said bridge, for a period of 15 years.

(2.) The bridge was completed and the applicant started collecting toll charges from the vehicles using the said bridge from 2004. However, the toll charges collected by the applicant were falling much below the projections on the basis of which the applicant had undertaken the construction of the bridge.

(3.) The applicant had various grievances against the respondent-Government. Some of the grievances being:-