The Paris Commercial Court on Friday ordered Ceetrus, Auchan’s property company, to pay the SNCF the sum of €47 million.
The court's ruling was handed down in one of the disputes that erupted after the railway company broke a contract signed with Ceetrus two years ago to modernise the Gare du Nord.
The property company, which has become New Immo Holding, will have to pay SNCF Gares et Connexions the sum of €47 million “in execution of the autonomous first demand guarantee” as well as interest, according to the ruling.
“On the strength of this initial favourable decision, SNCF Gares et Connexions intends to continue the proceedings underway at the administrative court to obtain compensation of €300 million from Ceetrus,” the SNCF group said, welcoming what it termed “a first major legal victory in [the] dispute with Ceetrus over the Gare du Nord.”
Two years ago, the SNCF abandoned its ambitious but disputed expansion project for the train station, which is the busiest in Europe, with 700.000 passengers a day. It terminated its renovation contract with Ceetrus in September 2021, citing a lack of control over the project, soaring costs and very long delays.
Accusing Auchan’s property company of a “serious breach,” the SNCF had criticised it for “unacceptable deviations from commitments,” with the cost of the work tripling to €1.5 billion, and delays.
Ceetrus, for its part, had accused its former partner of a lack of “loyalty.”
The work was meant to considerably expand the station in anticipation of the 2024 Olympic and Paralympic Games in Paris. In particular, the renovated station was to house new shops.
