Case Analysis

Case Title:

National Highways Authority of India versus Gwalior Jhansi Expressway Limited (Decision by Hon'ble Supreme Court of India in Civil Appeal No. 3288 of 2018 on 13.07.2018)

Facts:

On December 17, 2006, National Highways Authority of India ('NHAI') entered into a Concession Agreement with Gwalior Jhansi Expressway Limited ('GJEL') for  the work of widening of existing two-lane portion, from Km 16.000 to Km 96.127, to four lanes in the States of Uttar Pradesh and Madhya Pradesh. NHAI asserted that GJEL failed to undertake the project work at the requisite pace, inter alia, due to inadequate deployment of machinery, plant, material and manpower. GJEL had achieved only 62% progress and eventually abandoned the project site in March 2012. NHAI then issued a Cure Period Notice on October 19 2013, requiring GJEL to cure the breaches within 30 days from receipt of the notice. GJEL denied the notice by a written reply. NHAI thereafter, issued letters expressing