Trust Legal Secures Stay Against Debarment By National Highway Authority Of India

In a recent development, Trust Legal secured a stay against debarment by National Highway Authority of India.

The Bench of Justice Subramonium Prasad, High Court of Delhi passed an interim stay order against the debarment letter issued by National Highway Authority of India in a petition filed by SA Infrastructure Consultants Private Limited. 

SA Infrastructure was represented by Trust Legal through Partners, Mr. Sudhir Mishra and Ms. Ritwika Nanda and Associate, Ms. Shruti Gupta and led by Mr. Joy Basu, Senior Advocate in the petition challenging the debarment letter and the imposition of penalty. 

SA Infrastructure had argued before the High Court that the Debarment letter has been issued without following the due process of law and observance of principles of natural justice. 

Bench comprising Justice Subramonium Prasad observed that since the very show cause notice was defective, it was inclined to issue notice. 

It was further stated by the Court that the petitioner had successfully made out a prima facie case challenging the very basis of the show cause notice. Therefore, it was directed that Paragraph 5 of the impugned order shall be kept in abeyance till the next date of hearing.

The High Court, noting that the provisions of penalty as quoted in the Show Cause Notice was in variance to the terms of the Agreement executed between the parties, held that SA Infrastructure had been able to make out a prima facie case in its favour.

The next date of hearing is July 29, 2024.

W.P.(C) 4181/2024