HC upholds NHIDC decision in terminating contract for Nagaland NH project

Guwahati High Court has upheld decision of NHIDCL in terminating Rs 365 cr contract with a private company for construction of a portion of four-lane National Highway connecting Dimapur and Kohima

National Highways and Infrastructure Development Corporation (NHIDCL) - Photo: Website

The Gauhati High Court Kohima

Bench has upheld the decision of the NHIDCL in terminating the Rs 365 crore contract with a private company for construction of a portion of four-lane National Highway connecting Dimapur and Kohima in Nagaland.

The National Highways and Infrastructure Development Corporation (NHIDCL) on June 1 had terminated the contract with Gayatri Projects Ltd (GPL), which they had been awarded on April 22, 2016. At the time of signing of agreement, it was stated that the contract works would be completed in 3 years from the appointed date.

The scheduled date had lapsed by more than 2 years. Following the termination of the contract on June 1, GPL had filed a writ petition (C) before the Gauhati High Court Kohima Bench, which was dismissed on Wednesday by Justice Songkhupchung Serto and Justice S Hukato Swu.

The court observed that the extreme action of contract termination was taken only after the petitioner failed to keep the terms and conditions given therein.

Meanwhile, Nagaland Minister for Planning and Coordination, Land Revenue and Parliamentary Affairs, Neiba Kronu appreciated the NHIDCL for terminating the contract with Gayatri Projects Ltd. (GPL) from construction of 4-laning of Kohima-Dimapur road.

"I want to congratulate and appreciate the NHIDCL for taking a timely decision on termination of the GPL EPC (Engineering, Procurement and Construction) Mode contract worth Rs 340 crore of the 4-laning Kohima-Dimapur road," said Kronu in a release issued here on Thursday.

The minister also lauded the judgement on dismissal of the writ petition filed by the GPL against the termination of contract by the Gauhati High Court Kohima Bench.

"This will also cement the public faith in the judiciary to mete out immediate redressal to the common masses," he said.

Maintaining that the general public had suffered enough because of the irresponsible contractors in many ways, Kronu said enough is enough and the time has come for the people of Nagaland to appreciate such decisions of NHIDCL and the Gauhati High Court Kohima Bench.