In a strong endorsement of the authority’s position, a bench of Justices Dinesh Mehta and Vinod Kumar held that the “balance of convenience” lies squarely with the nation and road users. The judges said smooth and free movement of vehicles is a basic public requirement, and cannot be compromised due to slow execution by a private contractor.
The ruling relates to a 35-km section of the Delhi–Mumbai Expressway awarded to Pune-based Roadways Solutions India Infra Ltd (RSIIL). NHAI had issued a notice of intent to terminate the contract on December 23 after recording significant delays in construction. RSIIL challenged the notice before a single-judge bench, which stayed the termination, prompting NHAI to move the High Court in appeal.
Allowing NHAI’s appeal, the division bench rejected the contractor’s argument that issuing a fresh tender would take at least three months and that it could still demonstrate adequate progress. The court said NHAI was free to act in the public interest and ensure timely completion of the project.
At the same time, the court offered limited interim protection to the contractor. It restrained NHAI from encashing insurance surety bonds and bank guarantees furnished by RSIIL until the contractor’s application is finally decided by the single-judge bench. This safeguard, however, does not prevent NHAI from moving ahead with administrative steps to replace the contractor.
In its order, the High Court made it clear that NHAI may pass appropriate orders pursuant to its December 23 notice and, if considered necessary, issue a fresh notice inviting tender for Package VIII of the expressway. The authority has also been permitted to engage another agency or entity to complete the remaining work on the affected stretch.
The case has drawn attention to wider concerns about delays on parts of the ambitious Delhi–Mumbai Expressway, a project estimated to cost around ?1 lakh crore. RSIIL has been awarded three contracts covering a total of 87 kilometres in the Gujarat portion of the expressway. According to NHAI, progress on these stretches has been slow.Appearing for NHAI, Solicitor General Tushar Mehta told the court that the contractor’s failure to complete work has had a direct impact on motorists. Because of unfinished sections, vehicles travelling on the newly constructed expressway are being forced to take detours, undermining the purpose of the high-speed corridor.
Officials familiar with the matter say NHAI is likely to issue cure period notices for the two other stretches being built by RSIIL where progress has lagged. A cure period notice gives a contractor 60 days to rectify breaches or delays before the authority initiates formal termination proceedings.