Authority: High Court of Judicature at Madras

Order Date: 22-06-2026

Case Overview

  • Parties: Applicant BNR Infrastructure Projects Private Limited (Director Mr. Charan Prasad B) versus Respondents Yuzhan Technology India Private Limited (Director Mr. Chia Wei Chen), Kotak Mahindra Bank Ltd, ICICI Bank Ltd, HDFC Bank Ltd, Indian Bank. Additionally, EKK Infrastructure Limited (Managing Director Mr. Sanju Muhammed) sought impleadment as a sixth respondent in A.No.2465 of 2026.
  • Applications: O.A.No.542 of 2026 and A.No.2465 of 2026 seeking interim injunctions and impleadment; Arbitration Application No.1072 of 2026 pending arbitration before a sole arbitrator.
  • Core Dispute: Termination of the agreement dated 29‑10‑2025; allegations of delay in site hand‑over and design finalisation; claim over bank guarantees totalling Rs. 310 Crores issued by Respondents 2‑5; notice of part termination dated 30‑05‑2026.
  • Contractual Clauses Cited: 3.1.5 (time extension), 4.1.2, 4.4.2, 18.1.1 (notice to correct), 18.1.2 (grounds for termination), 18.1.3 (post‑termination obligations), 18.1.5 (security instruments), 18.1.6 (demobilisation), 18.1.7 (employer’s right to continue works), 20.6 (termination for convenience), 16.1 (compensation/extension of time), among others.
  • Arbitration Context: A sole arbitrator was appointed on consent; an Advocate Commissioner was directed on 11‑06‑2026 to conduct a joint inspection and the parties were instructed to maintain status‑quo without prejudice to ongoing construction.
  • Evidence: Report of M/s. Cushman and Wakefield India Private Limited dated 23‑05‑2016 indicating delays on the respondent’s side; no corrective notice under Clause 18.1.1 was found to have been issued to the contractor.

Final Outcome

  • The Court dismissed the applications and ordered that the status‑quo remain in force until 29‑06‑2026, the expiry of the 30‑day period prescribed in Clause 18.1.3 for the contractor to fulfil post‑termination obligations.
  • The respondent cannot invoke Clause 18.1.7 to continue the works or to utilise the contractor’s equipment, materials or documents before the final settlement is completed.
  • The termination notice of 30‑05‑2026 stays effective; the contractor must submit its final settlement documents (including bills, as‑built drawings, quality records, etc.) by 29‑06‑2026.
  • No costs were awarded; both parties retain the liberty to act as indicated in the earlier order dated 11‑06‑2026.

Topics: Contract Termination, Arbitration, Status‑Quo Order