Delay In Handing Over The Work Front Affecting Completion Is A Material Breach

While deciding section 34 Appeal, the Hon’ble Delhi High Court held that delay in the handing over of the Right of Way is a material breach of contract, if it affects the issuance of Completion Certificate or delays the Commercial Date of Operation (COD).The Bench upheld the arbitral award wherein the arbitrator held NHAI to be in material breach of the contract for its failure to provide the Right of Way or the work front to the contractor which resulted in the delay in issuance of provisional completion certificate and delayed commercial date of operation. The Court reiterated that scope of interference under section 34 of the Act is limited. The arbitral tribunal is the final adjudicating authority in respect of the disputes between the parties, as well as the interpretation of the agreement between them. No interference with the arbitral award would be warranted unless the Court finds that the view is patently illegal or perverse. The Court is not meant to act as court of first appeal and cannot supplant its view over that of the arbitral tribunal.

NHAI v. D.S. Toll Roads Pvt Ltd

Dehi High Court l Decided on 21.09.2023