Bombay High Court

Bombay HC: MahaOnline's Commission Deducted in Payment Dispute with Aksentt Tech

Updated
Dec 26, 2025 10:59 AM
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Here's a breakdown of the court's decision on a disagreement between MahaOnline Limited and Aksentt Tech Services Limited, where the court changed a decision made by an arbitrator.

Background of the Case

On December 5, 2025, the Bombay High Court, under Judge Sandeep V. Marne, made an important decision in a business argument involving MahaOnline Limited and Aksentt Tech Services Limited. The case was about a Business Associate Agreement (BAA) for an e-Panchayat project in Maharashtra.

The Dispute

MahaOnline, a partnership between the Government of Maharashtra and Tata Consultancy Services, hired Aksentt Tech to provide workers for digitization projects. The argument started when Aksentt Tech claimed they were owed more than ₹40 crores. They took the issue to arbitration on June 13, 2019.

Arbitration Award

The Arbitrator decided that Aksentt Tech should receive ₹25,27,78,775 with 8% interest from November 14, 2019, until it was fully paid, plus ₹25 lakhs in costs. However, MahaOnline argued against this decision, saying they would only pay if they received money from the Rural Development Department (RDD).

Key Arguments

  • MahaOnline's View: They said they were just middlemen and not responsible for payments unless RDD sent the money.
  • Aksentt Tech's View: They argued that MahaOnline had to pay them according to the contract, no matter any delays from RDD.

Court's Decision

  • Change in Award: The court lowered the amount to ₹23,63,48,154.62, taking out MahaOnline's commission.
  • Interest and Costs: The 8% interest was kept, but the ₹25 lakh cost was removed.

Important Dates

  • Arbitration Award Date: July 11, 2024
  • Court's Decision Date: December 5, 2025

Summary of Verdict

The court's decision shows how complicated subcontracting agreements can be and the need for clear payment terms. By changing the award, the court balanced the contract responsibilities with the reality of payment processes involving government departments.