HC restores NHAI decision to axe Delhi-Mumbai expressway contractor over delay

The Delhi High Court has lifted the stay on NHAI’s decision to terminate the contract of a Delhi-Mumbai expressway contractor over delay in completing a portion of the project, saying the citizenry cannot be deprived of a well-constructed highway for smooth and free movement.

On January 13, a bench of justices Dinesh Mehta and Vinod Kumar set aside an order of a single judge of the high court restraining NHAI from acting on its December 23, 2025, “notice of intent to terminate” the contract of Roadway Solutions India Infra Ltd.

The bench clarified that NHAI was free to act on its decision and issue fresh tender to engage any other entity to complete the construction of the stretch in question on the Delhi-Mumbai Expressway.

The injunction, it said, should not have been granted because it would result in delaying the project, which would be a “national loss” with citizens being forced to “take a detour for the stretch of 87 kilometres road which is incomplete or going at a snail’s pace due to the fault of either of the parties”.

Who is the party at fault would be decided in the arbitration proceedings between the parties, it added.

Solicitor General Tushar Mehta, appearing for NHAI, said the respondent contractor, who was awarded contract for three packages in 2024, failed to complete the work due to which out of the total highway spanning 794 km, 87 km was incomplete and all the passengers travelling on the newly constructed expressway were required to take a detour.

The present case concerned the dispute between the parties in one of the packages having 35 km-stretch in Gujarat.

Unless the stay order was lifted, Mehta said, NHAI would not be able to engage any other contractor to complete the ambitious infrastructure project within the scheduled timeline.

He further submitted that the contractor itself issued a “notice of intention to terminate” the contract on December 18, 2025 while alleging that the NHAI failed to make contiguous land available for construction of a stretch of the highway.

The bench opined that there was “enough material” to show that NHAI had “valid and legit reasons” to issue the termination notice and in infrastructural projects like highways, the court could not take unto itself, the authority or power of granting unwarranted indulgence to a contractor, which was best be left to the authorities.

“In the facts of the present case, when the contractor itself wanted the contract to be terminated, one cannot conclude at this stage as to whether the contractor really wanted to work or it simply wants to wriggle out of the contractual obligations or escape the consequences entailing the termination of contract,” said the court.

“We feel that 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. We have no hesitation in holding that in light of the discussion made hereinabove, the appellant NHAI ought not to have been restrained from proceeding in furtherance of notice of intent to terminate contract dated 23.12.2025,” it ordered.

The court however restrained NHAI from encashing the insurance surety bonds and bank guarantees tendered by the contractor until the disposal of the plea before the single judge.

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Road Solutions India Infra Ltd approached the single bench earlier this year seeking directions to stay NHAI’s notice of intent to terminate while the parties raise their dispute before an arbitration tribunal.

The single judge passed the stay order on January 2.

According to Road Solutions India Infra Ltd, NHAI’s notice was illegal and arbitrary.