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Soma Isolux NH One Tollway v. Harish Kumar Puri

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 4611 of 2014)Decided 17 Apr 2014
Civil Appeal No. 4611 of 2014
Justice Gyan Sudha Misra · Justice Pinaki Chandra Ghose

Background

A public interest case about road safety expanded into a dispute over delayed six-laning of the Panipat-Jullundur highway. The High Court ordered NHAI to take over the project and imposed ₹60 crore on the concession company and ₹7 crore on its director. The company argued that the order effectively ended its agreement without examining NHAI's role in blocking a toll plaza relocation previously approved in court proceedings.

Decision Breakdown

The Supreme Court allowed the appeal and set aside the challenged High Court directions. It held that the court had effectively cancelled the concession without examining the parties' contractual duties, the reasons for delay or the earlier final decisions on relocation. NHAI had to permit a mutually agreed toll plaza location between kilometre 110 and kilometre 117 within two months, complete the required notification and provide unencumbered land. The company then had to resume construction, complete the highway by 31 March 2015 and report progress every three months, with contractual penalties for failure. Further genuine project difficulties could be brought to the Supreme Court, and the parties bore their own costs.

Lesson Learnt

Public interest orders must address the actual legal duties and causes of a project's delay before displacing a valid contract. Protecting road users also requires enforceable steps and deadlines to complete the work.

Official source (sci.gov.in)View Judgment (PDF)

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