Delhi High Court Grants Ex-Parte Ad Interim Injunction In Favour Of Essel Group Against NHAI

The Delhi High Court on October 29, 2021 granted an ex-parte ad interim injunction against the NHAI, restraining it from taking any further action consequent to the award of tender to a third party in respect of maintenance project already awarded to the petitioner.  

The order was passed in a petition filed under Section 9 Arbitration & Conciliation Act, 1996 filed by ESSEL Lucknow Raebareli Toll Roads Ltd. through Trust Legal. ESSEL Lucknow Raebareli Toll Roads Ltd. was represented by Mr. Arvind Nayar, Senior Advocate and Ritwika Nanda, Partner, Trust Legal. 

The issue arose from a Concession Agreement executed by NHAI with ESSEL Lucknow Raebareli Toll Roads Ltd. for augmenting 70 kilometres of NH 24B between Lucknow and Raebareli in Uttar Pradesh.

In March, 2021, NHAI floated a tender inviting bids for the maintenance work of the project, which was within the scope of the Concession Agreement and intimation of the tender was given by NHAI to of ESSEL Lucknow Raebareli Toll Roads Ltd.

During the pendency of the tendering process, of ESSEL Lucknow Raebareli Toll Roads Ltd. engaged a contractor for carrying out major maintenance works in the aforesaid project and accordingly informed NHAI of the same. Yet, however, NHAI issued a Letter of Award to a third party for the maintenance work. 

By way of the petition, ESSEL Lucknow Raebareli Toll Roads Ltd., challenged the issuance of the Letter of Award to the third party and sought an order restraining NHAI from taking any further action pursuant thereof. 

NHAI issued a cure period notice calling upon the petitioner to cure alleged breaches on its part within 60 days, repair and maintenance being one of them. 

The Hon’ble Court while appreciating the documents on record, held that the petitioner had a prima facie case and would face irreparable damage if the interim reliefs as prayed for were not granted.