Authority: Supreme Court of India
Order Date: 31-08-2026
Case Overview
- Petition for Special Leave to Appeal (C) No. 29512/2026 filed by National Highway Authority of India (NHAI) against Tata Projects Limited, arising from the impugned final judgment and order dated 08-07-2026 of the High Court of Judicature at Allahabad in WC No. 4559/2025.
- NHAI issued a termination notice to Tata Projects alleging non‑maintenance of the Project Highway during construction, breach of Clause 10.4 (maintenance obligation) and Clause 23.1.1(g) of the Contract Agreement.
- The Authority claimed that despite numerous reminders, the Contractor failed to maintain traffic‑worthiness, resulting in extremely poor riding quality at the existing highway and diversion locations.
- A total of 180 Non‑Compliance Reports (NCRs) were raised; 73 NCRs remained open at the time of the notice.
- The termination notice referenced several communications: Cure Period Notice dated 11.10.2024, Intention to Termination Notice dated 23.12.2024, Authority letters dated 27.12.2024 and 03.01.2025, and Engineer’s letters no. 1572 dated 08.01.2025.
- Pending rectification works listed:
1. Major DBM settlement between Chainage 19+500 to 20+750.
2. RE wall back‑fill scoured up to bottom level between Chainage 03+290 to 03+430 LHS, between Chainage 01+400 to 01+460, and between Chainage 03+438 to 03+900.
3. Closure of the 73 outstanding NCRs (details in Annexure‑B).
Final Outcome
- The Supreme Court stayed the operation of the High Court’s judgment pending further orders.
- An order was issued directing the parties to file a notice, returnable on 17.09.2026.
- Respondent’s Advocate‑on‑Record, Mr. Nitin Saluja, waived the notice on behalf of Tata Projects.
- The Court emphasized public interest and suggested that the parties reconvene to resolve the issues raised in the termination notice.
- The order was signed by Astt. Registrar‑cum‑PS Court Master (Jayant Kumar Arora) and (Pooja Sharma).
Topics: Court Order, Highway Contract Termination, Infrastructure Dispute