Delhi High Court Clears Way for NHAI to End Contract on Delhi-Mumbai Expressway Project
The Delhi High Court has given the green light to the National Highways Authority of India (NHAI) to proceed with terminating the contract of a Pune-based firm responsible for a critical stretch of the Delhi-Mumbai Expressway. The court emphasized that citizens should not face deprivation of a well-constructed highway due to delays.
Project Delays and Legal Battle
Roadways Solutions India Infra Limited (RSIIL) was handling an 87-kilometer segment in Gujarat for the massive 1,386-kilometer expressway. This project carries a total cost of approximately Rs 1.04 lakh crore. Reports from December 2025 highlighted that the expressway remained in limbo because this stretch saw less than 20% completion over nearly four years.
The contractor initially received the contract in 2021. NHAI scrapped two parts of it in March 2023 due to delays, only to re-award them to RSIIL in November 2023 after the company submitted the lowest bid. Despite this, progress remained sluggish.
Court's Decision and Reasoning
A division bench comprising Justices Dinesh Mehta and Vinod Kumar issued an order on January 13, 2026. This order overturned a previous ruling from a single judge that had restrained NHAI from acting against RSIIL. The bench found the contractor's arguments unconvincing.
RSIIL had claimed that NHAI failed to provide contiguous land for construction, hindering progress. The court dismissed this as a "lame excuse", noting that land acquisition and possession procedures were already complete. The bench pointed to letters from NHAI in August and October 2025, urging the contractor to mobilize resources at the site.
The judges stated, "Citizenry cannot be deprived of a well-constructed highway to ensure smooth and free movement." They added that granting undue indulgence to the contractor would cause national loss, forcing travelers to take detours around the incomplete section.
Key Implications and Next Steps
The court's decision permits NHAI to issue a fresh notice inviting tender if deemed urgent. However, it restrained NHAI from encashing insurance surety bonds and bank guarantees worth around Rs 100 crore submitted by RSIIL, pending arbitration proceedings.
Solicitor General Tushar Mehta, representing NHAI, argued that any injunction against termination would harm national interest by delaying the ambitious infrastructure project. Both parties are already engaged in arbitration, where fault for the delays will be determined.
The bench clarified that the authority to continue or terminate contracts lies with the awarding body, not the court. They emphasized that such matters should be resolved through arbitration rather than judicial intervention.
Background and Contractor's Position
RSIIL had issued a notice to terminate the contract on December 18, 2025, alleging NHAI's failure in land handover. NHAI responded with its own termination notice on December 23, 2025. The contractor argued this was a retaliatory move, but the court found sufficient material to support NHAI's actions as valid and legitimate.
This ruling underscores the judiciary's focus on public interest in major infrastructure projects, prioritizing timely completion over contractual disputes.
