Soma Isolux National Highway Project: Reinforcing the Rights of a Contractor

The case came up before a Division Bench of the Supreme Court of India comprising Justice Gyan Sudha Misra and Justice Pinaki Chandra Ghose against the order of the Punjab and Haryana High Court. While settling various issues, the Supreme Court set aside the order of the Punjab and High Court nullifying the concessional agreement on the ground that it defeated the contractual terms of the parties. Further, Soma pleaded that the order levying a penalty on it be set aside and sought transfer of the project back to it from the NHAI.

The concessionaire Soma requested for eight months’ time to complete the Panipat and Jalandhar National Highway One . The issue of shifting tollways was mainly contested before the Supreme Court in the special leave petition. The Supreme Court had not only permitted Soma but also directed the NHAI to approve for relocation of two toll plazas, namely Ambala and Karnal, at 110 km and 211 km of the project respectively . It was observed that any changes in the terms and conditions of the concession agreement between the parties should be approved by the Planning Commission and Ministry of Economic Affairs. ...