Sat. May 8th, 2021

National Highways Authority Of … vs Panipat Jalandhar Nh-I Tollway … on 13 April, 2021

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1. The following observations by the learned Single Judge in the
order dated 12th March, 2021 passed in O.M.P.(I) (COMM.) 98/2021 has
brought the appellant/National Highways Authority of India (“NHAI”,
for short) before us: –

“21. Mr. Mehta has laid much emphasis on the intent of the

FAO(OS) (COMM) 55/2021 Page 1 of 26
language used in Clause 37.1.2 which begins with the words
“without prejudice to any other rights or remedies”. There is
no doubt that the Respondent could take recourse to the
aforesaid provision without prejudice to other rights and
remedies and proceed to suspend the Petitioner and accord it
an opportunity to cure the defects. However, that does not
mean that in case the Respondent has elected to exercise this
remedy, it could simultaneously also proceed to terminate
under Clause 37.1.2 on the basis of same set of facts. Since
the Respondent has elected to go down the path of
suspending the rights of the Petitioner as available under the
agreement, the opportunity to cure the defects has to be
necessarily given, failing which, the Clause itself would
become redundant.

Source: Indian Kanoon

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