Wednesday, April 22, 2026
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2026April 2026ArbitrationHigh CourtLatestLegal

Payment for Suspension of Consultancy Attributable to NHAI

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The Arbitrator found that the suspension was not occasioned by any breach of the consultant but for the reasons attributable to the authority.  As a result, denial of payment for the suspension period would not be justified.

Suspension of Consultancy Does Not Absolve Payment

Arbitral Award for Payment of Suspension Period of Consultancy

Judgment dated 20.4.2026 of the High Court of Delhi in the case of National Highways and Infrastructure Development Corporation Limited   vs.  Intercontinental Consultants and Technocrats Private Limited in Joint Venture with Anandjiwala Infra Advisory Pvt Ltd

The agreement dated 22.2.2021 for consultancy services of the respondent as NHAI Authority’s Engineer.

On 9.4.2021, the petitioner suspended the services of the respondent, pending inquiry into the complaint.

On 7.7.2021, the notice for termination was issued for alleged engagement in corrupt and fraudulent practices for competing in RPF.

The suspension was revoked on 22.9.2021.   The petitioner claimed payments for the suspension period of April to August 2021.

The Arbitrator granted Rs.5,44,04,340/- for suspension period with pendent lite & future interest and litigation costs of Rs.6,18,500/-.

The issue that suspension and issuance of SCN was a bona-fide act had lost relevance after withdrawal of suspension order, SCN and decision taken that the respondent shall continue with the project and was not required to be dealt in detail in the award.

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