Dispute Resolution & Arbitration Monthly Update | June 2023

Department of Transport, GNCTD v. Star Bus Services Pvt Ltd

Delhi High Court | 2023 SCC OnLine Del 2890

Background facts

• Star Bus Services Pvt Ltd (Respondent) invited bids for the provision of bus services via Request for Qualification (RFQ) for private stage carriage buses through corporate entities. After due evaluation of proposals, GNCTD (Petitioner) accepted the proposal of the Respondent and in furtherance of the same, issued a Letter of Acceptance (LoA).
• Thereafter, a Concession Agreement (CA) was entered into between the Petitioner and the Respondent, whereby the Respondent was to induct low-floor CNG buses for a period of 10 yea. As per the terms set out therein, the Respondent was required to provide a consolidated Depot at Gadaipur, Delhi, with certain civil infrastructure facilities stipulated therein. However, during the subsistence of the contract, issues arose between the parties due to the termination of the said contract by the