Gujarat High Court Grants Stay in Surat Diamond Bourse Case

Surat : The Gujarat High court has quashed the Surat Court order asking the Surat Diamond Bourse to furnish bank guarantee of RS 100 crores within a period of seven days from December 6, 2023.

The High Court bench comprising of Justice Umesh A Trivedi and Justice Niral R Mehta after hearing both the parties directed the Surat Diamond Bourse to file reply to the application under Section 9 by December 27, 2023 and directed the Surat court to dispose of the case by January 31, 2024.

The stay order by the Surat court has come as a relief to the Surat Diamond Bourse members who are eagerly awaiting the inauguration by Prime Minister Narendra Modi on December 17.

Previously, the Surat court had directed the Surat Diamond Bourse to deposit Rs 100 crore as bank guarantee against PSP Projects Limited’s claim for outstanding dues amounting to Rs 538 crore on December 6, 2023.

Expressing satisfaction with the court’s decision, Lalji Patel, overseeing the Surat Diamond Bourse construction, stated, “We are pleased with the stay granted by the Gujarat High Court  in the PSP Project case. We are prepared with all necessary documents and will present our case on December 27.”

Patel said that the Surat Diamond Bourse’s significance as the world’s largest office building, representing a source of pride for both Gujarat and India. He reassured the institution’s 4,200 members of the SDB’s steadfast commitment to integrity and resolution of the ongoing matter.

Bhagirath Patel, legal advisor of PSP Projects said, “The order was passed after a broad consensus was arrived between both the parties  on quashing and setting aside the Surat court order on bank guarantee of RS 100 crore. Also, the Gujarat HC has directed the Surat court to dispose of the case by January 31, 2024.”

In contrast, PSP Projects Limited, an Ahmedabad-based construction giant, has rebutted the claims made by the Surat Diamond Bourse committee. Contesting assertions of 98% payment settlement, leaving a mere 2% outstanding, PSP Projects Limited has submitted a comprehensive 1000-page dossier to the Surat court. The dossier highlights pending dues totaling Rs 538 crore and refutes the payment status presented by the SDB committee.