Delhi High Court: NHAI Can Terminate Roadway Solutions India Infra Contract

• Roadway Solutions India Infra and NHAI entered into a contract for the execution of a highway project in October 2022.
• Disputes arose regarding delays in execution, with both parties blaming each other for the setbacks.
• The parties attempted to resolve their differences through a settlement agreement but ultimately, NHAI issued a notice of intention to terminate under Clause 23.1(ii). The Delhi High Court dismissed the petitioner's subsequent request for interim relief on August 10, 2026.
• The case highlights the importance of clear contractual obligations and the need for parties to comply with their contractual duties.
• Lawyers advising on Indian infrastructure projects should watch for the precedent set by this case.

Disputes nevertheless continued, despite attempts at resolution through a settlement agreement.

Roadway Solutions India Infra and NHAI entered into a contract on October 17, 2022, for the execution of a highway project. The original scheduled completion date was set for January 12, 2025. However, disputes arose regarding delays in execution, with both parties blaming each other for the setbacks.

The petitioner attributed the delay to NHAI's failure to provide right of way under clause 8.1, non-availability of continuous work fronts, and delays in obtaining approvals. In contrast, NHAI attributed the delay to the petitioner's failure to deploy adequate resources, maintain the highway stretch, and comply with contractual and safety obligations.

The parties attempted to resolve their differences through a settlement agreement dated April 25, 2025, which revised the scheduled completion date to April 30, 2026, and Milestone-III to January 11, 2026. Despite this, disputes continued.

The dispute highlights the complexities of contractual obligations in infrastructure projects in India. The contract between Roadway Solutions India Infra and NHAI is governed by Indian law, which provides for specific procedures for resolving disputes. In this case, the parties attempted to resolve their differences through a settlement agreement, but ultimately, NHAI issued a notice of intention to terminate under Clause 23.1(ii). The petitioner consequently approached the Court under Section 9 of the Arbitration and Conciliation Act, 1996, seeking restraint against further action pursuant to the termination notice, but the Delhi High Court dismissed this petition on August 10, 2026, refusing to grant interim relief.

The legal implications of this case are significant, particularly with regards to the interpretation of contractual clauses and the rights of parties in dispute. Lawyers advising on Indian infrastructure projects should take note of the precedent set by this case.

Under Indian law, contract termination notices must be issued in accordance with specific procedures. In this case, NHAI's notice of intention to terminate was issued after the expiry of a cure period notice, which had been disputed by the petitioner.

The Roadway Solutions India Infra vs NHAI contract dispute has significant implications for the Indian infrastructure sector. The case highlights the importance of clear contractual obligations and the need for parties to comply with their contractual duties.

Lawyers advising on Indian infrastructure projects should watch for the precedent set by this case, particularly with regards to the interpretation of contractual clauses and the rights of parties in dispute. They may also need to advise clients on the implications of contract termination notices under Indian law.

The case serves as a reminder that disputes can arise even after attempts at resolution through settlement agreements. It underscores the importance of careful contracting and compliance with contractual obligations.

Source: Original reporting via Analysis of Roadway Solutions India Infra vs NHAI