M A I N   N E W S

HC order on Panipat highway stayed
R Sedhuraman
Legal Correspondent

New Delhi, June 12
The Supreme Court today stayed the Punjab and Haryana High Court verdict handing over the construction of the Panipat-Jalandhar highway to the National Highway Authority (NHAI).

A Bench comprising Justices Gyan Sudha Misra and Madan B Lokur also stayed the HC order directing the existing contractor, Soma Isolux NH One Tollway, to pay a penalty of Rs 65 crore and face contempt for not completing the project within the assured time.

The bench took the NHAI to task for obstructing the completion of the 291-km project at a cost of Rs 4,500-crore by constantly changing its stand instead of facilitating its early construction.

In its order, the SC was also critical of the HC for entertaining a PIL in a contractual matter and cancelling the contract after the company had finished 71 per cent of the work and spent 77 per cent of the estimated cost.

The Bench also issued notice to the Haryana government, the Centre and other parties involved in the case seeking their response within four weeks.

Further, the SC directed the NHAI to take steps to resolve the issue with the company at the earliest and allow resumption of work if possible before the next hearing on July 23.

The project has virtually remained stalled for two years over the shifting of toll plazas at Ambala and Karnal. According to the contractor, the NHAI is refusing to allow the shifting of the plazas to check evasion of toll by vehicles plying on the highway by taking bypass roads and thereby make the project financially viable.

The NHAI gave in principle approvals twice for shifting the toll plazas before taking a U-turn despite the fact that the contract between the company and the authority also had a provision for the purpose, senior counsel AM Singhvi contended in the court.

At the last hearing, the NHAI counsel took an adjournment of the hearing so that it could provide a copy of the entire contract to show that the company was not free to shift the toll plazas.

At today’s hearing, the NHAI contended that it had no power to allow the shifting of the toll plazas. It was for the Central government to give approval for the purpose.

It also pleaded with the SC not to allow the shifting of toll plazas as this would have serious implications for 150 similar projects being implemented by the NHAI across the country.

The contractor has come to the SC challenging the HC judgment cancelling the contract. The company is contending that it could not be deprived of completing the project and collecting toll for 15 years to recover its investment at this juncture when the work is pending only on a stretch of 40-odd km.

Stalled for Two years

* The project has remained stalled for two years over the shifting of toll plazas at Ambala and Karnal

* The contractor says the NHAI is refusing to allow the shifting of the plazas

* The NHAI said it had no power to allow the shifting of plazas as it was for the Central government to give approval

* It urged the SC not to allow the shifting of toll plazas as this would affect 150 similar projects being implemented by the NHAI