The court has restrained NHAI from encashing insurance surety bonds and bank guarantees furnished by the contractor
NEW DELHI: Citizenry cannot be deprived of a well-constructed highway to ensure smooth and free movement of vehicles, Delhi high court has said, allowing NHAI to take steps to terminate the contract with Pune-based Roadways Solutions India Infra Ltd (RSIIL) due to delay in the construction of a 35-km stretch of the Delhi-Mumbai Expressway.“We feel the balance of convenience entirely lies in the favour of the nation and citizens of India and in turn NHAI and not in favour of the contractor. Because the citizenry cannot be deprived of a well constructed highway to ensure smooth and free movement,” a bench of justices Dinesh Mehta and Vinod Kumar noted, allowing NHAI to engage any other agency to complete construction of the 35-km stretch while dismissing the contention of RSIIL that awarding of fresh contract will take at least three months and the construction firm can show the requisite progress.NHAI had served “notice of intent to terminate” the contract to the highway builder on Dec 23. The contractor subsequently challenged the notice before a single-judge bench which stayed the same, prompting NHAI to appeal.The court has restrained NHAI from encashing insurance surety bond(s) and bank guarantee(s) or surety furnished by the contractor until disposal of its application before the single judge. “NHAI shall, however, be free to pass appropriate order pursuant to the notice of intent to terminate the contract dated Dec 23, 2025 and if deemed expedient, to issue fresh NIT (read tender) in relation to package no-VIII and engage any other agency/ entity to complete construction of road covered by package no-VIII of Delhi-Mumbai Expressway,” HC said.RSIIL has bagged contracts for three stretches totaling 87-km in Gujarat portion of the Rs 1 lakh crore expressway project where progress has been slow, as per NHAI’s notice served to the company. Solicitor general Tushar Mehta said the contractor has failed to complete the work on these three stretches due to which “all the passengers travelling on the newly constructed expressway are required to take a detour”.TOI has learnt that NHAI will soon issue cure period notice for two other stretches that RSIL is constructing, but where progress has been slow. Cure period notice is issued to a contractor to fix any breach in 60 days before initiating the process for termination.
