Summary: A legal fight between Signpost India and Brihanmumbai Electric Supply and Transport (BEST) over ad rights on Mumbai buses ended with Signpost India's claims being turned down and some of BEST's claims being agreed upon.
On January 2, 2024, a decision by an arbitrator turned down all claims by Signpost India against BEST. Signpost India challenged this decision under a specific section of the Arbitration and Conciliation Act, 1996. The case was heard by Judge Sandeep V. Marne in the Bombay High Court.
Advertisement Rights: Signpost India was allowed to put ads on 3121 BEST buses from February 11, 2019, to February 10, 2022. They had to pay display charges based on a certain formula.
Damaged Buses: Signpost India claimed many buses were damaged and asked for discounts, saying they couldn't put ads on these buses. A joint check found 753 buses damaged, but BEST only gave a partial discount.
COVID-19 Impact: During the pandemic, BEST gave discounts for certain times, but Signpost India wanted more for an extra 8 days in March 2020.
Rejection of Claims: The court agreed with the arbitrator's decision to reject Signpost India's requests for more discounts on damaged buses and COVID-19 days. The court found no agreement in the contract for these discounts and pointed out that Signpost India had agreed to the terms.
Interest on Delayed Payments: BEST's request for interest on late payments was partly dismissed. The court found the contract's terms on "interest on interest" confusing and against public norms.
RTO Fees and Defacement Charges: BEST's claims for RTO fees were upheld, but charges for defacing were dismissed due to lack of proof of actual damage.
Costs: The court reduced the arbitration costs that Signpost India had to pay BEST from Rs. 48,20,000 to Rs. 25,00,000.
Final Order: The court changed the arbitration decision, dismissing some of BEST's claims but confirming others.
This case shows how important it is to have clear agreements and understandings, especially in big business deals.
