#EPC contract

Milestone payments under the EPC agreement are treated as operational debt under Section 5(21) of the IBC, and the creditor’s Section 9 petition is dismissed as time-barred after three years. The ruling confirms that such contracts continue despite delays, limiting insolvency claims by contractors. This impacts EPC contractors and lenders seeking recovery in insolvency proceedings.

Allahabad High Court sets aside NHAI’s termination of an EPC contract, ruling that failure to provide possession of land as per contractual obligations violates Article 14. The Court mandates project timeline rescheduling, emphasizing state authorities cannot evade contractual duties under the guise of arbitrary termination.

Gauhati HC upheld a ₹40 crore royalty demand against Simplex Infrastructures for extracting minor minerals without a permit under NH-52 project, ruling Rule 64 Assam Minor Mineral Rules imposes strict liability regardless of procedural lapses. The judgment reinforces statutory compliance obligations for contractors in infrastructure projects involving mineral extraction.

Gauhati HC rules that contractors must provide verifiable documentation under Assam Minor Mineral Rules to claim exemption from forest royalty on excavated earth reused internally in infrastructure projects. The court held that writ jurisdiction cannot bypass statutory compliance, setting a precedent for strict adherence to procedural proofs in mining and environmental law disputes.

The Rajasthan High Court struck down the Jaipur Development Authority’s unilateral withdrawal of an EPC contract for the OTS Flyover, holding that invoking Clause 32 without evidence of contractor default violates both Article 14 and the doctrine of promissory estoppel. This ruling reinforces that state agencies cannot arbitrarily revoke contracts merely on policy grounds, setting a critical precedent for infrastructure contractors relying on state assurances.