The Bombay High Court has refused to dismiss a ₹115.65-crore claim filed against the Mumbai Metropolitan Region Development Authority (MMRDA) in connection with the Mithi River widening and deepening project.
The dispute dates back to a contract awarded by the MMRDA in March 2007 to Backbone Projects Ltd (BPL) and Backbone Construction Pvt Ltd (BBC) as a joint venture for widening and deepening the Mithi River between Mahim Causeway and Dharavi Bridge.
A commercial suit seeking recovery of more than ₹115 crore, including interest, was filed in 2017 following disputes that arose during the execution of the project.
MMRDA had sought dismissal of the suit under Order VII Rule 11 of the Code of Civil Procedure, arguing that the joint venture was not a separate legal entity and therefore could not institute proceedings in its own name. According to the authority, the two constituent companies should have filed the claim individually.
The contractors, however, argued that the original contract itself had been executed in the name of the joint venture and that filing the case under the same name was a bona fide procedural error. They also sought permission to bring the two member companies formally on record as the plaintiffs.
Justice Sandeep Marne rejected MMRDA’s plea, observing that an error concerning the name of a plaintiff does not automatically warrant dismissal of a suit if the defect can be rectified under the CPC.
The court noted that procedural provisions empower courts to correct defects relating to parties in a case. It held that the mistake in filing the claim in the joint venture’s name could be corrected and was not sufficient grounds to terminate the entire proceedings.
The ₹115.65-crore commercial dispute against MMRDA will therefore be allowed to continue.
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