The Bombay High Court on Monday dismissed petitions filed by construction companies including subsidiaries of Larsen and Toubro, and an Adani Group-linked firm against a commercial suit relating to a slum redevelopment project, Bar and Bench reported.

Justice Gauri Godse ruled that the petitions had consumed “considerable long time” of the court and imposed costs of Rs 2 lakh on each of the respondents.

The interim pleas were filed by L&T Asian Realty Project LLP, L&T Realty Limited, Shiv Infra Vision Private Limited, the Slum Rehabilitation Authority’s chief executive officer and Portsmouth Buildcon Private Limited, which is linked to the Adani Group, according to Bar and Bench.

The pleas had invoked a rule in the Civil Procedure Code to seek the rejection of a commercial suit filed by KS Chamankar Enterprises and its partner.

KS Chamankar Enterprises had alleged conspiracy and mala fide removal as developer of the project in Mumbai.

It had been appointed as the developer for three housing societies. The firm stated that it had constructed a composite rehabilitation building before being abruptly terminated and replaced by the Slum Rehabilitation Authority, Bar and Bench reported.

KS Chamankar Enterprises challenged this in the High Court.

It alleged that the subsidiaries of Larsen and Toubro and Portsmouth Buildcon had colluded with the authorities to take control of the project.

L&T’s subsidiaries and the firm linked to the Adani Group had sought that the suit be rejected. They had cited the lack of cause of action, limitation and mandatory pre‑institution mediation under the Commercial Courts Act, the legal news outlet reported.

The High Court observed that the plaintiff had shown a cause of action and triable matters that cannot be decided at the preliminary stage.

The judge observed that despite settled law on the narrow scope of the rules in the Civil Procedure Code and sections of the Commercial Courts Act being cited, the respondents had kept pressing technical objections and consumed “considerable long time” of the court.

L&T Realty said in an email that the matter remains sub judice and the High Court order on the interim applications “does not constitute an adjudication on the merits of the underlying dispute”.

The allegations contained in the suit are “disputed and remain subject to judicial determination”, the company said, adding that “no findings on the merits of such allegations have been rendered” by the court.

Corrections and clarifications: This article has been updated to say that the court imposed “costs” on the companies instead of a “fine”, and to add a statement by L&T Realty.

Edited by Neerad Pandharipande.