Summary: In a recent decision by the Bombay High Court, Signpost India Private Limited lost its claims against the Brihanmumbai Electric Supply and Transport Undertaking (BEST) over a disagreement about advertising rights on buses. The court ordered Signpost to pay interest and costs, but also reduced some fines.
Who’s Who:
- Signpost India Private Limited: A company that deals with advertising.
- BEST: Brihanmumbai Electric Supply and Transport Undertaking, a public transport provider in Mumbai.
The Contract:
In January 2019, Signpost won a contract to place ads on 3121 BEST buses for three years, from February 2019 to February 2022. They offered ₹95.5 crores for this chance.
Damaged Buses:
Signpost claimed that many buses were too damaged for ads. Initially, they said 966 buses were unfit. After a joint inspection, it was found that 753 were indeed damaged. BEST later agreed to give discounts for 672 buses but not all, which made Signpost unhappy.
COVID-19 Discount:
During the pandemic, BEST gave discounts for certain periods, but Signpost wanted more for the first lockdown days in March 2020. The court, however, didn't agree to this extra discount.
Judgment Date:
The decision was given on December 4, 2025, by Justice Sandeep V. Marne.
Key Decisions:
Claims Rejected: All of Signpost's requests for extra discounts were denied.
Counterclaims Allowed: BEST's requests for interest on late payments, RTO fees, and damage charges were mostly accepted.
Interest and Costs: Signpost was told to pay interest and legal costs, but the court reduced the fines for damage charges and interest on late payments.
Arbitration and Appeals:
Signpost challenged an earlier decision that favored BEST. The court slightly changed the decision, reducing some financial burdens on Signpost.
Important Quotes:
"The court found no rule in the contract for discounts on damaged buses."
"The award of interest on large late payment charges goes against public policy."
The court denied Signpost's claims for extra discounts and mostly upheld BEST's claims for interest and fees. However, some penalties and interest charges were reduced by the court.
