BCC to deposit Rs 3 cr in Hayagreeva arbitration case

Belagavi: The Belagavi City Corporation (BCC) has resolved to deposit Rs 3 crore in court in compliance with a district court directive issued in connection with its ongoing arbitration dispute with Hayagreeva Company. The decision was taken after council secretary Sidhu Hulloli briefed members about the legal consequences of failing to deposit the amount before the March 15 deadline.Hayagreeva Company had executed development works in the city in 2008 under a Rs 100-crore special grant received by the corporation. Disputes over payments later prompted the company to file a claim of Rs 35 crore against the civic body.
The matter was referred to arbitration by the Karnataka high court, Dharwad bench. After nearly three years of hearings, the arbitrator awarded Rs 12 crore in compensation to the company. Challenging the award, the BCC approached the district court, which granted a conditional stay on the award—subject to the deposit of 25% of the amount within one month.However, the corporation failed to deposit the sum within the stipulated period and sought an extension, a move strongly opposed by Hayagreeva Company.With the risk of adverse legal action looming, the BCC has now decided to deposit Rs 3 crore—representing 25% of the compensation—before the deadline, ruling group leader advocate Hanumant Kongali said.Get the latest lifestyle updates on Times of India, along with Holi wishes, messages and quotes !