SC issues contempt notice to Godavari Corporation

Chhatrapati Sambhajinagar: The Supreme Court (SC) issued orders to serve a contempt notice to Godavari Marathwada Irrigation Development Corporation (GMIDC) for not making full payment of arbitrator for the delay in the construction work of the distributaries in Gangakhed sub-division under the Majalgaon project.

According to details, the construction of the distributaries took 13 years, between 1991 and 2004. An arbitrator was appointed in this matter. The arbitrator directed GMIDC to pay compensation and payment of additional work to the contractor.

When the GMIDC approached the Parbhani District Court under Section 34 of the Arbitration Act against the decision of the arbitrator, the court dismissed the petition in 2016.

Against this, the Corporation filed an appeal in the High Court which directed the Godavari Corporation to pay 60 per cent of the amount.

After this, GMIDC approached the Supreme Court (SC) which gave interim orders to pay 100 per cent of the amount.

The Corporation did not comply with the orders. The High Court dismissed the Corporation's appeal in December 2022. While giving a verdict on the merits, it upheld the arbitrator’s decision.

In April 2023, the Corporation filed a special leave application in the SC against the arbitrator’s compensation. In the petition, the GMIDC stated that the arbitrator’s compensation was Rs 344 crore. The SC again directed it to deposit the entire arbitration amount. In 2025, the contractor filed an affidavit stating that the Corporation deposited only Rs 86 crore.

This matter was brought to the notice of the court. The court expressed its strong disapproval and expressed its opinion that such behaviour was unacceptable. Notice was issued to the Executive Engineer of the Corporation in connection with the contempt petition. The next hearing has been placed on March 28. Adv Girish Naik-Thigale worked for the respondent. Adv. Rahul Chitnis assisted him through a virtual mode.