Delay In The Handing Over The Work Front Affecting Completion Is A Material Breach : Delhi High Court
1 year, 5 months ago

Delay In The Handing Over The Work Front Affecting Completion Is A Material Breach : Delhi High Court

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The Delhi High Court has 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. The bench of Justice Manoj Kumar Ohri upheld an 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 observed that Clause 13.5 provides for a pre-determined compensation for the delay handing over of the ROW, however, the proviso to the clause clearly provides that the clause would not apply if the delay affects the issuance of Provisional or Final completion certificates or delays COD. The 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.

History of this topic

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