Delhi High Court allowed NHAI to terminate the contract with Roadways Solutions India Infra Limited (RSIIL) for delaying the Delhi-Mumbai Expressway project.
The 1,386-km Expressway, costing Rs 1.04 lakh crore, faced delays due to the non-completion of an 87-km stretch in Gujarat by RSIIL.
The court restrained NHAI from encashing Rs 100 crore in insurance surety bonds and bank guarantees but permitted the termination notice issued on December 23, 2025.
A division bench overturned a single judge's order that had restrained NHAI from acting against RSIIL.
Detailed Insights:
RSIIL was initially awarded three stretches in 2021, but two were scrapped in March 2023 due to delays and re-awarded to the same company in November 2023.
After almost four years, RSIIL completed less than 50% of the 87 km stretch, leading to NHAI's decision to terminate the contract.
RSIIL had issued a notice on December 18 to terminate the contract, alleging that NHAI failed to provide contiguous land for construction.
The court noted that it cannot grant unwarranted indulgence to a contractor, especially when the contractor itself sought termination.
Solicitor General Tushar Mehta argued that the injunction against NHAI was against national interest, delaying the infrastructure project.
The court permitted NHAI to issue a fresh notice inviting tender (NIT) if deemed urgent, while arbitration proceedings between NHAI and RSIIL are ongoing.
Key Concepts Involved:
National Highways Authority of India (NHAI): An autonomous agency of the Government of India responsible for the development, maintenance, and management of national highways.
Notice Inviting Tender (NIT): A formal invitation to potential contractors to submit bids for a specific project or service.
Arbitration: A form of alternative dispute resolution where a neutral third party helps resolve a disagreement outside of court.