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2023 Supreme(Del) 2093

IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
PSL Infratech Private Limited – Appellant
Versus
National Highways Authority of India & Anr. – Respondents
W.P.(C) 9796 of 2021 & CM APPL. 30215 of 2021
Decided On : 03-02-2023

Advocates appeared:
Mr. Ravikiran Singh & Surabhi Maheshwari, Advocates, for the Petitioner.
Mr. Manish K. Bishnoi and Mr. Nirmal Prasad, Advocates, for the R-1.
Mr. Anil Soni, CGSC with Mr. Devvrat Yadav, Advocate, for the Respondent-2.

The court emphasized the importance of adhering to the claimed period for force majeure and directed parties to avail remedies for contractual claims in accordance with the law.

Headnote:

Force Majeure - User Fee Collection Contract - Clause 17(a) of the contract dated 13th October 2020 - NHAI approval for force majeure claim - Bank guarantee adjustment - Extension of force majeure claim period

Fact of the Case:

The petitioner, awarded a contract for User Fee Collection at the Banajodi Fee Plaza, invoked force majeure clause due to the Covid-19 pandemic and raised claims against NHAI. NHAI initially did not reply but later communicated approval for force majeure claim for specific periods. Disputes arose regarding the adjustment of performance security and the extension of the force majeure claim period.

Finding of the Court:

The court found that the force majeure claim for the extended period could not be considered in a writ petition and directed the petitioner to avail remedies in accordance with the law.

Issues: Dispute over force majeure claim period extension and adjustment of performance security.

Ratio Decidendi: The court held that the force majeure claim period sought to be extended beyond the initially claimed period could not be considered in the writ petition.

Final Decision: The petition, along with all pending applications, was disposed of with the direction for the petitioner to avail remedies for any other claims under the contract in accordance with the law.

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode.

2. The present writ petition has been filed by the Petitioner who was awarded the contract for "User Fee Collection at the Banajodi Fee Plaza" in the State of Odisha. The said contract was entered into on 13th October, 2020 for a period of one year from 15th October, 2020 to 15th October, 2021. The said period was post the first wave of the Covid-19 pandemic.

3. The Petitioner invoked the force majeure clause in the contract and raised various claims by issuing notices to the National Highways Authority of India (NHAI) (MoRTH). The said claims of the Petitioner were initially not replied to by the NHAI. A writ petition was filed by the Petitioner herein, being W.P.(C) 9000/2021 titled `PSL Infratech Private Limited v. National Highway Authority of India & Anr.' in which the Court records the stand of NHAI that the claim is still pending consideration and permitted it to decide the same. The order dated 26th August, 2021 reads as under:

"CM APPL. 27976/2021

1. Exemption allowed, subject to all just exceptions.

2. The application is disposed of.

W.P.(C) 9000/2021

3. Vide the present petition, the petitioner which has been awarded the right to collect toll at the toll plaza located at Banajodi, Odisha on NH 215 has approached this Court being aggrieved by the respondents' initiation of coercive action against the petitioner without deciding its pending representation invoking force majeure in terms of the agreement between the parties.

4. After the matter was heard at some length yesterday, learned counsel for the respondent was granted time to obtain instructions. Today, he submits that keeping in view the fact that the petitioner's representation invoking force majeure is still pending consideration, the respondents will withhold any coercive action against the petitioner till a decision is taken on the petitioner's aforesaid representation.

5. In the light of the aforesaid stand taken by the respondent, nothing further survives for adjudication. It is, however, directed that, no coercive action will be taken against the petitioner for a period of one week from the date a decision is taken on the petitioner's pending representation.

6. The petition alongwith the pending application is, accordingly, disposed of in the aforesaid terms."

4. Subsequent to the said order, the NHAI communicated its approval vide letter dated 8th February, 2022, for the force majeure claim of the Petitioner for the following two periods:

i.5th May, 2021 to 31st July, 2021-Rs.4,96,22,584/-
ii.1st August, 2021 to 24th September, 2021-Rs.7,64,20,245/-

5. As per Clause 17(a) of the contract dated 13th October 2020 signed between the Petitioner and the NHAI which deals with performance security, the user fee collecting agency had furnished a security deposit towards performance security consisting of 2 components. The said clause of the contract reads as under:

"The user fee collecting agency has furnished a security deposit towards Performance Security consisting of (a) a crossed account payee demand draft/pay order, amounting to Rs.6,61,56,250/- (Rupees Six Crore Sixty One Lakh Fifty Six Thousand Two Hundred and Fifty Only) (an amount equal to one (1) month's agreed remittance) has been deposited by the bidder through RTGS/NEFT vide UTR No. BARBR52020101200906036 dated 12.10.2020 in favour of National Highways Authority of India). (an amount equal to one (1) month's agreed remittance) issued by a Scheduled Bank in India, drawn in favour of the Authority and payable at New Delhi and (b) a bank guarantee as per the format prescribed by National Highway Authority of India from any Nationalised Indian Bank/State Bank of India or its subsidiaries/IDBI/ICICI/Export Import Bank/Foreign Bank with counter guarantee from any Nationalized Indian Bank or State Bank of India or its subsidiaries/ any RBI approved Scheduled Commercial Bank having net worth of more than Rs.500 crore (Rupees

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