The judgment establishes the principle that the NHAI's penalty actions, including debarment, should be proportional and in line with the NHAI's policy on penalty actions.

JUDGMENT :

PRATHIBA M. SINGH, J.

This hearing has been done through hybrid mode.

2. The NHAI floated a tender as a part of the Bharat Mala Project under the Bharat Mala Scheme for engaging entities to provide consultancy services, for the preparation of the ‘Detailed Project Report’ (DPR).

3. The Petitioners-Isan Corporation India Pvt. Ltd. (‘Isan India’) and Specialized Engineering Services Pvt. Ltd., (‘Specialised’) which had formed a consortium, had submitted their bid and were declared successful bidders. Pursuant to this, a ‘Consultant's Contract Agreement’ (hereinafter ‘the agreement’) dated 11th May, 2017 was entered into between the Petitioner-consortium and NHAI. The said agreement described the project as under:

“CONSULTANCY SERVICES FOR PROJECT PREPARATION OF FEASIBILITY STUDY/DETAILED PROJECT REPORT OF SELECTED PORT CONNECTIVITY ROAD STRETCHES/CORRIDORS FOR UP GRADATION TO TWO/FOUR LANE NH CONFIGURATION UNDER BHARAT MALA SCHEME. (1) UPGRADING OF EXISTING DEDICATED PORT CONNECTIVITY FROM KRISHNAPATNAM PORT NH-5 IN SPSR NELLORE DISTRICT THE STATE OF ANDHRA PRADESH (II) DEVELOPMENT OF 5KM LONG GREEN FIELD ROAD CONNECTING SOUTH AND NORTH INDUSTRIAL CLUSTER OF KHANDALERU CREEK NEAR KRISHNAPATNAM PORT (III) UPGRADING OF EXISTING R&B ROAD FROM NEAR KRISHNAPATNAM PORT IN SPSR DISTRICT NELLORE (TOTAL LENGTH - 55 KMS) IN THE STATES OF ANDHRA PRADESH UNDER - CONTRACT PACKAGE NO. NHAI/PC/1”

4. In terms of the contract, various deadlines were fixed for submission of the report. The said deadlines are explained in the form of days from the date of the contract at page 411 of the counter affidavit of NHAI in WP (C) 15986/2022. The same are set out below—

Schedule for submission of Reports and Documents

5. The consortium had to make site visits, conduct topographic surveys and commence work for preparation of the report. The final deadline was 210 days for the submission of the DPR. The writ petitions have exhaustively set out the details of the correspondence between the consortium and the NHAI. It is not in doubt that a draft feasibility report was, for the first time, submitted in February, 2018. However, in view of the urgency involved in the matter, the NHAI appears to have requested the Petitioner-consortium for the submission of the tender documents. The Petitioner submitted the tender documents consisting of the format, template, etc. which were to be part of the DPR, on 21st December, 2017. The tender was floated on 28th December, 2017, however, the draft report was given for the first time in February, 2018. In the meantime, the DPR preparation cont