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PSA Sical was represented by Abhishek Manu Singhvi, Senior Advocate and Kavin Gulati, Senior Advocate, who was assisted by the team from Karanjawala & Co. The Port Authority was represented by Madhavi Divan, Additional Solicitor General of India.
The Port Authority had also issued a termination Order on June 7, to terminate the license agreement with the company and indicated that it would initiate an appropriate process for dispossession and recovery of dues.
The disputes had originated between the parties under a License Agreement which was awarded to PSA Sical in 1998 to inter alia design, engineer, finance, erect and operate berth no. 7 of the Port called “Container Terminal” for a period of 30 years. Under the said License Agreement, the company had to pay fixed royalty every month to the Port Authority. However, as time passed, the Port Authority kept escalating the Royalty Charges every year, eventually the same being much higher than the average container handling charges that it allowed PSA Sical to charge, thus making it commercially unviable to operate, information shared by Karanjawala & Co said.
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