NewsStocksDelhi High Court Restores NHAI Decision to Terminate Delhi-Mumbai Expressway Contractor Over Project DelaysDelhi High Court Restores NHAI Decision to Terminate Delhi-Mumbai Expressway Contractor Over Project Delays
Delhi High Court lifted the stay on NHAI's decision to terminate Roadway Solutions India Infra Ltd's contract for Delhi-Mumbai expressway delays. The January 13 ruling by justices Dinesh Mehta and Vinod Kumar allows NHAI to proceed with the December 23, 2025 termination notice and engage new contractors. The dispute involves a 35 km Gujarat stretch, with 87 km of the total 794 km expressway remaining incomplete, forcing passenger detours.
*this image is generated using AI for illustrative purposes only.
The Delhi High Court has lifted the stay on the National Highways Authority of India's (NHAI) decision to terminate the contract of a Delhi-Mumbai expressway contractor, prioritizing national infrastructure development and citizen convenience over contractual disputes. The ruling allows NHAI to proceed with engaging alternative contractors to complete the delayed project sections.
Court Ruling Details
On January 13, a bench comprising justices Dinesh Mehta and Vinod Kumar set aside a single judge's order that had restrained NHAI from acting on its December 23, 2025 "notice of intent to terminate" issued to Roadway Solutions India Infra Ltd. The court clarified that NHAI was now free to act on its decision and issue fresh tenders to engage other entities for completing the construction.
| Case Details: | Information |
|---|---|
| Contractor: | Roadway Solutions India Infra Ltd |
| Termination Notice Date: | December 23, 2025 |
| Court Decision Date: | January 13 |
| Project Stretch: | 35 km in Gujarat |
| Total Expressway Length: | 794 km |
| Incomplete Portion: | 87 km |
Project Impact and Justification
The court emphasized that the injunction should not have been granted as it would delay the project, constituting a "national loss." Citizens are currently forced to take detours for the 87 km incomplete stretch, which is progressing at a "snail's pace" due to disputes between the parties. The bench stated that citizenry cannot be deprived of well-constructed highways for smooth and free movement.
Solicitor General Tushar Mehta, representing NHAI, explained that the contractor was awarded contracts for three packages in 2024 but failed to complete the work. This failure has left 87 km of the total 794 km expressway incomplete, requiring all passengers on the newly constructed expressway to take detours.
Contractual Disputes and Arbitration
The case reveals mutual termination intentions from both parties. While NHAI issued its termination notice on December 23, 2025, the contractor had already issued its own "notice of intention to terminate" on December 18, 2025, alleging that NHAI failed to make contiguous land available for construction.
The court noted there was "enough material" to show NHAI had "valid and legit reasons" for the termination notice. It observed that when the contractor itself wanted contract termination, questions arose about whether the contractor genuinely intended to work or simply wanted to escape contractual obligations.
Court's Final Decision
The bench concluded that the balance of convenience entirely favored the nation and citizens rather than the contractor. However, the court provided some protection to the contractor by restraining NHAI from encashing insurance surety bonds and bank guarantees until the disposal of the plea before the single judge.
Roadway Solutions India Infra Ltd had approached the single bench seeking directions to stay NHAI's termination notice while parties pursued arbitration. The single judge had initially passed the stay order on January 2, but this has now been overturned in favor of project completion and national interest.
20
