Delhi High Court Permits NHAI to Terminate Contract for Delayed Expressway Stretch
The Delhi High Court has made a significant ruling in favor of the National Highways Authority of India (NHAI). The court allowed NHAI to take steps to terminate its contract with Pune-based Roadways Solutions India Infra Ltd (RSIIL). This decision comes due to delays in constructing a 35-kilometer stretch of the Delhi-Mumbai Expressway.
Court Emphasizes Public Interest in Highway Construction
A bench of Justices Dinesh Mehta and Vinod Kumar delivered the judgment. They stated that the balance of convenience lies entirely with the nation and its citizens. The court highlighted that people should not be deprived of a well-constructed highway. Smooth and free movement of vehicles is essential for public welfare.
The bench noted that NHAI can now engage any other agency to complete the construction. This move aims to expedite the project and benefit commuters. The court dismissed RSIIL's argument that awarding a fresh contract would take at least three months. The judges found that the contractor's claim did not outweigh the public interest.
Background of the Contract Dispute
NHAI served a "notice of intent to terminate" the contract to RSIIL on December 23, 2025. The contractor challenged this notice before a single-judge bench. That bench stayed the termination, prompting NHAI to appeal to the high court.
The high court has now allowed NHAI to proceed with the termination process. However, it imposed certain conditions. NHAI is restrained from encashing insurance surety bonds or bank guarantees provided by RSIIL. This restraint will remain until the disposal of the contractor's application before the single judge.
Despite this, the court clarified that NHAI can pass appropriate orders based on the December 23 notice. The authority can issue fresh tenders for package no-VIII of the expressway. It can also engage another agency to complete the road construction.
Wider Issues with RSIIL's Contracts
RSIIL has secured contracts for three stretches totaling 87 kilometers in the Gujarat portion of the Delhi-Mumbai Expressway. This massive project is valued at approximately Rs 1 lakh crore. According to NHAI, progress on these stretches has been slow.
Solicitor General Tushar Mehta represented NHAI in court. He argued that RSIIL failed to complete work on these three stretches. As a result, all passengers traveling on the newly constructed expressway must take a detour. This situation causes inconvenience and delays for thousands of commuters.
Reports indicate that NHAI will soon issue cure period notices for two other stretches being constructed by RSIIL. Progress on these sections has also been sluggish. A cure period notice gives a contractor 60 days to fix any breaches before termination proceedings begin.
Implications for the Delhi-Mumbai Expressway Project
This court decision underscores the importance of timely infrastructure development. The Delhi-Mumbai Expressway is a critical national project. It aims to enhance connectivity and boost economic growth across regions.
Delays in construction not only inconvenience travelers but also impact trade and commerce. The high court's ruling prioritizes the completion of this vital highway. It sends a clear message to contractors about adhering to project timelines.
The judgment may set a precedent for similar cases involving public infrastructure projects. It reinforces that contractual obligations must align with broader public interests. Ensuring efficient highway construction remains a top priority for national development.
