Topic
The National Highways Authority of India (NHAI) is a statutory body responsible for developing, maintaining, and managing national highways under the National Highways Act, 1956, and related regulations.
Delhi HC stayed NHAI's debarment of a joint-venture independent engineer because the authority failed to issue the graded warnings required by the contract’s TOR, and a policy circular cannot override the agreement. The ruling obliges NHAI to follow the step-wise warning mechanism in any future debarment, safeguarding consultants from arbitrary exclusion.
Delhi HC rejected NHAI’s Section 34 challenge, confirming the arbitral award of 10% p.a. interest compounded monthly. It held that jurisdictional objections must be raised promptly and that consent to arbitrate precludes later attacks. The decision safeguards interest awards and clarifies procedural timing for parties in arbitration.
The Delhi High Court partially vacated the NHAI-Louis Berger award, finding that the tribunal’s grant of operation-and-maintenance relief exceeded the matters arbitrable under the contract and breached the equal-treatment rule of Section 18. The construction-payment portion of the award remains intact, signalling that arbitral tribunals cannot extend relief beyond the defined scope in infrastructure consultancy disputes.
Punjab & Haryana HC orders NHAI to pay compensation for 9.33 marlas of land used for NH-64 widening despite exclusion from the original award, holding that unnotified use for public purpose mandates payment under the Act.
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.
Himachal Pradesh HC rules that criminal liability under Section 336 IPC cannot be imposed on NHAI officials without specific allegations of rash or negligent conduct. The judgment reinforces that vicarious liability in road maintenance cases demands direct evidence of individual fault, not merely organizational responsibility.
The Bombay High Court has ruled that denying landowners compensation on the grounds that 'regular acquisition was not acceptable' violates the constitutional right to property under Article 300A. This sets a critical precedent: administrative convenience cannot override constitutional obligations, and sympathetic ex-gratia payments cannot substitute for statutory compensation in public infrastructure projects.
The Karnataka High Court ruled that courts cannot interfere with the National Highways Authority of India’s (NHAI) policy decisions on highway alignment if statutory procedures, including Section 3D notifications, are complied with. The judgment reinforces the limited scope of judicial review in administrative law, emphasizing that objections raised post-notification do not invalidate expert-driven policy choices.
CESTAT Hyderabad rules that NHAI’s assignment of toll collection rights to private contractors for fixed consideration constitutes a taxable service under the service tax regime, rejecting claims of sovereign immunity and negative list exemption. This sets a critical precedent for statutory authorities engaging in commercial activities, clarifying that public infrastructure operators cannot evade tax liability by masking revenue-generating contracts as sovereign functions.
Bombay High Court rules that claimants can withdraw deposited arbitration award amounts under Section 34 challenges, subject to an undertaking to refund if the Supreme Court reverses the order. The ruling clarifies that mere pendency of an appeal does not bar withdrawal, ensuring liquidity for claimants during prolonged disputes.
The Delhi High Court ruled that NHAI’s termination of a toll contract before expiry under Clause 35(6) is valid if it safeguards the public exchequer, even absent contractor breach. The ruling clarifies that contractual termination clauses in public infrastructure projects override commercial expectations, but only when justified by fiscal necessity-not speculative profit.
Chhattisgarh High Court rules that statutory interest under the National Highways Act is payable from the date of possession, irrespective of omissions in the award or NHAI’s administrative delays. The judgment reinforces that landowners are entitled to timely compensation, and public authorities cannot evade liability due to internal procedural failures.
NGT holds that construction on a listed wetland without environmental clearance violates Wetland Rules 2017 and EIA Notification 2006, directing NHAI to restore the damaged pond within six months. The ruling reinforces wetland protection norms and sets a precedent for infrastructure projects encroaching on ecologically sensitive zones.
J&K High Court holds that state occupation of private land without acquisition violates Article 300A; mandates NHAI to initiate formal acquisition or restore possession.
Bombay High Court holds that taking possession of land without paying compensation violates constitutional rights; directs NHAI to file reply and appear personally.