major relief to cargo terminal operator PSA-SICAL Terminals Ltd, the Supreme
Court on Friday 17 June ordered the
Shipping Ministry and the V.O. Chidambaranar Port Trust, Thoothukudi to
maintain status quo, restraining the authorities from initiating any action
against the firm.
PSA SICAL has been embroiled in a contentious litigation, since 2014, over the tariff charges and the royalty being paid by the cargo terminal operator to the Chidambaranar Port Trust.
On June 7, the Madras High Court had rejected the challenge by PSA-SICAL to consideration of the issue by a special committee. The port authority had also issued a termination order on the same date on June 7, to terminate the license agreement with PSA-SICAL and indicated that it would initiate the appropriate process for dispossession and recovery of dues.
With Friday's apex court order, the port authority would now be restrained from initiating any action towards the company.
PSA SICAL was represented by Senior Advocates Dr. Abhishek Manu Singhvi and Kavin Gulati assisted by the team from Karanjawala & Co.
The port authority was represented by Additional Solicitor General Madhavi Divan.