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Rope Way Projects

Intro

 Since 2018,
 the Indian government has been advocating ropeways for
tourism and urban transport.
 They are encouraged as a low-cost, low-energy form of
transport and development that can reduce pollution
 objections

 Palchan is one of the villages near Manali whose residents have objected to the

construction of the ropeway.
 Originally planned in 2010, the Rohtang ropeway project has been scrapped and
revived multiple times,
 the National Green Tribunal, India’s environmental court, insisted on it
while locals resisted it.
 Many locals work as taxi drivers.
 that the development will lead to income loss for those who work as taxi drivers in
his village and that the village council has suggested an alternative route.
 Environmental Impact Assessment 

 In February 2010, the Ministry of Environment & Forests released an

Environmental Impact Assessment  manual for ropeways.
 change in topography and drainage pattern,
 soil erosion and contamination
 loss of forest cover,
 habitat fragmentation,
 blocking of migratory corridors,
 …

 damage to historically important sites,

 exploitation of ground/surface water,

 emissions from vehicles and generators,

 impacts of vibration and waste generation.

“Unlike the traditional use of ropeways in the hills, the current thrust is connected
with tourism and commercial purposes.”
Issues

 environmental assessment regarding acquisition of land

 consequent displacement of persons,
 deforestation,
 land degradation affecting vegetation and forest growth;
 noise and air pollution;
 damage to monuments/ buildings of importance;
 water pollution including its effect on water regime and impact on
local population
RTDC
 Government of Himachal Pradesh is committed to make endeavors

 for the improvement of physical infrastructure in the State

 by creating and enhancing more transport facilities for the public & tourists.

 After successful bidding of many projects, Government of Himachal Pradesh

through Ropeways and Rapid Transport System Development Corporation
H.P. Limited (RTDC) proposes to develop a Ropeway in the State
……

 The geographical condition of the state is

 such that it is not possible to connect all locations by roads, moreover
construction of roads is also not possible in wildlife sanctuary,
 reserve forest or private land as land holding of the people is very less.
 Therefore Ropeway and Rapid Transport System Development
Corporation Limited HP (RTDC) have been created as single nodal
agency with a mandate to provide ropeway and other overhead mass
rapid transport system connectivity throughout the state of Himachal
Pradesh
Purpose

 To connect left out habitations where construction of roads is not

possible due to nonavailability of land or forest clearance.
 ➢ To connect new places of tourist attractions and explore new
opportunities of tourism and to further enhance revenue of the state.
 ➢ To decongest cities by providing overhead means of transportation.
 ➢Providing overhead means of communication on high density roads
and cities like Sky Buses, Pod Cars etc.
 ➢ To provide first and last mile connectivity as per requirement.
…..

 At present Killar is connected by 161 Kms long road with

Chamba via Saach pass situated at an altitude of 4461 m.
 This valley remains cutoff from the rest of the world for at
least six months due to heavy snowfall at Saach.
 In view of above and the fact that all weather connectivity is
paramount for the people living in Killar valley,
 ecofriendly ropeway connectivity has been found as the
most suitable innovative transport solution.
……

 It has been decided to connect Killar valley with Chamba

by providing ropeway connectivity through Sach pass
from Bhanodi to Pregaron.
 The above project would bring overall growth and socio-
economic development in the tribal area of Killar valley
…..

 Availability of year round transportation for their

livestock, horticulture, agriculture produce and other
materials.
 • Harnessing of tourism potential of the unexplored areas
in this valley.
 • Year round access of natives to advanced facilities of
health/ education etc. in Chamba and other parts of the
state/country.
Uttaranchal High Court

Prof Ajay Singh Rawat

V
Union Of India & Others
Date of Judgment: 20.10.2020
 Facts

 writ petition had been filed by the petitioner

 against the indiscriminate, illegal construction activities in the green zones as

demarcated by the Lake Development Authority,

 Nainital and other prohibited areas of Nainital, 

 …..for declaration of Nainital area as an 'Eco-Sensitive Zone' and for

preservation of recharge-zones of Nainital Lake.
 prayed for

 issuance of an ad-interim mandamus directing the respondent authorities to

immediately stop the destructive activities in the 'Eco-Sensitive Zone' of Sukhatal and

 to take measures to revive the Sukhatal Lake owing to its importance as life line and
recharge zone of the Naini Lake and

 there had been no prayer as regards demolition of any property or as regards

troubling the local public.
 …..

 To issue a writ, order or direction in the nature of Mandamus

 commanding the respondents to functionalize the District Disaster

Management Authority and

 to channelize the sanction of all the development and construction

plans through it, fixing strict accountability on its officials.
 …..

 To issue a writ, order or direction in the nature of Mandamus commanding the

respondents to immediately take strict measures for the clearance of construction
over the reacharge zones of Naini Lake

 like inside the shoreline of Sukhatal, and to take other remedial measures for
mitigation of the damage caused by the illegal and unplanned construction and
developmental activities
 finally

 On October 20, 2020,

 the court observed the state Tourism Development Board
and district magistrate of Nainital to work out an
alternative.
Delhi High Court

Interstate Equipment (I) P. Ltd.

V
Bharat Aluminium Company Limited
27 July, 2007
 Case facts

 The respondent invited tenders for installation of Aerial Ropeway System at Gandhamardan Bauxite Project
on turn key basis in Orissa by issuing Notice Inviting Tender (NIT) dated 30.9.1982

 Pursuant to the invitation of tender, petitioner submitted its bid to the respondent at Delhi.

 the date of contract will start when Balco (respondent) pays 10% advance after issuance of letter of intent and
the contract was to be completed within a period of 22 months from the date when 10% advance was
paid.
….

o The petitioner was supposed to submit a bank guarantee for this advance of 10% of the
contract value in the Balco's prescribed format within 10 days of issuance of letter.

o The contract was to be governed by the terms and conditions as per Notice Inviting Tender
(NIT).
 ……

 The petitioner's case is that the work on the project could not take off and was kept on hold. 10% advance was
not paid by the respondent.

 final environmental clearance was denied by the Central Government.

 There was also an agitation by the local tribal people against the project. 

 The respondent's case

 the project was kept on hold by it hoping that the tribal upsurge against the project would subside and the final
environment clearance would be granted by the Central Government. The correspondence on this account
continued between the parties from October 1983 onwards, when the initial letter of intent was issued
Issues which needed resolution
  i. Payment for goods inspected and supplied at site.

 ii. Payment and acceptance for goods and supplies ordered on account of Balco project
ready and awaiting dispatch.

 iii. Liability on account of cancellation of orders or compensation to Suppliers for

placing them On Hold.

 iv. Relief and reimbursement of overheads, establishment and other direct/indirect

costs incurred by petitioner consequent upon the Hold placed by Balco for the period
of involvement.
……

 v. revision of contractual price and conditions of contract or in case Balco

chooses to abandon the work to assess and pay for loss of profits and damages
after deducting the advance payments.
 vi. Immediate interim relief in terms of paras 1 to 4 to enable to meet pressing
commitments / liabilities.
 Petitioner stated in its letter that in the event of not receiving any positive
response within a fortnight from notice date,
 ………..it shall presume that respondent was not inclined to make a reference to
arbitration. In that event, respondent may suggest the names of the arbitrators
who would be acceptable to petitioner and if desired by respondent, petitioner
could also suggest such suitable name/ names.
….

• Petitioner wrote another letter dated 16.8.1988 to the respondent

• noted that the respondent was still making efforts to obtain necessary
clearance and to revive the project.
• However, petitioner wanted that decision on outstanding disputes be
urgently taken and disputes be resolved.
 The stand of the respondent

 it was not responsible for the contract being on hold and the circumstances,
beyond the control of the respondent were responsible for the frustration of the
contract.

 the issue regarding existence of the contract itself would be one of the issues and
respondent hoped that matter would be resolved amicably between the parties.
The petitioner filed the present suit

 under Section 20 of the Arbitration Act 1940

 praying the court that respondent be directed to file arbitration agreement and the disputes
between the parties be referred to Justice H.L. Anand (Retd.)

 The respondent’s reply

 that the contract containing the arbitration agreement was void under Section 20 of the
Indian Contract Act. The arbitration agreement having become void was not enforceable. 
 Further stated

 even if contract was not void,

 the conditions precedent to invoking the arbitration agreement were not fulfillled and the arbitration
agreement could not be invoked by the petitioner without fulfillling the conditions.

 ……..Court has no jurisdiction to entertain this suit inasmuch as according to the terms of the agreement
based on the NIT and General Conditions of the Contract,

 all disputes arising out of the contract are deemed to have arisen in Bilaspur/ Ratnagiri and only the courts
at Bilaspur/ Ratnagiri shall have jurisdiction to entertain the suit.
Issues

 1. Whether this Court has no jurisdiction to entertain and try this petition
 2. Whether there exists a valid, subsisting arbitration agreement between the parties
 3. If issue No. 2 is proved, whether the petitioner has not properly invoked the arbitration
agreement
 4. What are the disputes required to be referred for arbitration.
Court

 …..holding that the provision of Arbitration and Conciliation Act1996 would

apply in this case and this Court appointed Sh. A.B. Saharia (Retd.) Chief
Justice of Punjab and Haryana High Court as the sole arbitrator to adjudicate
upon the disputes between the parties .
 writ petition was preferred against this judgment before Division Bench of this Court, the order of this
Court was quashed

 and the matter was remanded back to Single Judge to decide the entire matter afresh in accordance with
law.
Court’s Jurisdiction

 clause in contract
 All disputes arising out of or in any way connected with this agreement shall be deemed to
have arisen in Bilaspur/Ratnagiri and only the Courts in Bilaspur/ Ratnagiri shall have
jurisdiction to determine the same.

 The venue of Arbitration proceedings shall be the Administrative Officers of the Korba/
Ratnagiri Projects
Court held

 …..contract between the parties explained and filled up and it is specifically provided that
only court at Bilaspur shall have jurisdiction in respect of all disputes arising or connected
with the agreement.

 It is obvious that Delhi courts will have no jurisdiction. The petitioner's office was at
Calcutta. The respondent was having works at Bilaspur/Ratnagiri.

 therefore, hold that this Court has no territorial jurisdiction.

Validity of arbitration agreement

 Court held …………

 Once a contract is concluded between the parties and contract contains

an arbitration clause that the disputes arising out of the contract shall be
resolved between the parties through arbitration, even if the contract is
rescinded/ terminated or otherwise gets frustrated, the arbitration clause
shall still survive and the disputes between the parties has to be
resolved in accordance with the mechanism provided in the contract.
 Court….finally

 petitioner has properly invoked the arbitration clause and issue is decided in favor
of the petitioner and against the respondent.

 In case the disputes between the parties are referred to the arbitrator, all those
disputes have to be referred to the arbitrator apart from the contentions raised by
the respondent that the contract between the parties was void / frustrated.

 This Court has no territorial jurisdiction and courts at Bilaspur/ Ratnagiri has
jurisdiction, the petition is hereby dismissed.
 The End