M/s. IVLR Infrastructure vs The Superintending Engineer

Court
Madras High Court

WP(MD) No. 14572 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 11-11-2026
CORAM
THE HON'BLE MR. JUSTICE SENTHILKUMAR
RAMAMOORTHY
WP(MD) No. 14572 of 2026
CNR:{HCMD010655992026}
M/s. IVLR Infrastructure
Represented by its Managing Partner,
I. Vetrivel,
Having Registered Office at
No.3/1, Ashok Nagar,
4th Street,
Palamedu Main Road,
Madurai - 625 018.
..Petitioner(s)
Vs
1. The Superintending Engineer
National Highways - Madurai Circle,
5, Besant Road,
Chinna Chokikulam,
Madurai - 625 002.
2. The Divisional Engineer
National Highways - Madurai Division,
5, Besant Road,
Chinna Chokikulam,
Madurai - 625 002.
3. The Chief Engineer
National Highways,
3rd Floor,
No.76, Sardar Patel Road,
HRS Campus,
Guindy,
Chennai - 25.
4. The Chief Engineer
Ministry of Road Transport and Highways,
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WP(MD) No. 14572 of 2026
C-1-A, Rajaji Bhavan,
Besant Nagar,
Chennai - 600 090.
..Respondent(s)
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India, praying this Court to issue a Writ of Mandamus, directing the
respondents to issue Completion Certificate forthwith for the Project by
treating the balance unexecuted stretch of 140 meters as deemed
withdrawn after conducting an enquiry with respect to the 1st respondent,
in accordance with law, within the time stipulated by this Honble Court,
and pass such further or other orders as this Honble Court may deem fit
and proper in the circumstances of the case and thus render justice.
For Petitioner(s) :M/s Karthikeyen K
For Respondent(s) :Mr.R.Parthiban, Spl. Govt. Pleader
For R1 To R4
ORDER
An Engineering, Procurement and Construction (EPC) contract was
awarded to the petitioner on 08.03.2024. Said contract pertains to the
construction of the bypass to Madurai–Achambathu–Virattipathu
between Kilometres 6/850 to 10/382 of NH 49 Extension, including land
acquisition. According to the petitioner, the respondent was under a
mandatory obligation to provide vacant and encumbrance-free right of
way on the appointed date and, in any event, not later than 150 days
thereafter. The petitioner asserts that 90% of the right of way was
provided only on 31.01.2026 after a delay of about 693 days and that
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WP(MD) No. 14572 of 2026
right of way in respect of 140 metres remains unavailable.
2. On account of the alleged failure of the respondent to provide
right of way for an extent of 140 metres, the petitioner states that it is
being put to substantial losses. Consequently, the petitioner seeks a
direction for the issuance of a completion certificate by treating the
balance unexecuted stretch of 140 metres as deemed to be withdrawn
from the project scope.
3. Relying on paragraphs 14 and 15 of the counter-affidavit,
Mr.R.Parthiban, learned Special Government Pleader, submits that the
stretch from Kilometre 8/200 to Kilometre 8/550 could not be provided
earlier, but said stretch was provided later and the petitioner successfully
completed construction on that stretch. Relying on paragraph 30 of the
counter-affidavit, learned Special Government Pleader points out that the
completed and pending works are captured in a table in the said
paragraph. He also points out that the contract contains an arbitration
clause.
4. As is evident from the above narration, this matter relates to a
construction contract awarded on an EPC basis. The said contract
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WP(MD) No. 14572 of 2026
contains a two-tiered dispute resolution mechanism. Clause 26.3 provides
for arbitration. Said clause is set out below:
“ Clause 26.3 Arbitration:
(i) Any dispute which remains unresolved between the
parties through the mechanisms available/prescribed in
the Agreement, irrespective of any claim value, which
has not been agreed upon/reached settlement by the
parties, will be referred to the Arbitral Tribunal as per
the Arbitration and Conciliation Act.
(ii)Deleted.
(iii) The Arbitral Tribunal shall make a reasoned award
(the "Award"). Any Award made in any arbitration
held pursuant to this Article 26 shall be final and
binding on the Parties as from the date it is made, and
the Contractor and the Authority agree and undertake
to carry out such Award without delay.
(iv)The Contractor and the Authority agree that an
Award may be enforced against the Contractor and/or
the Authority, as the case may be, and their respective
assets wherever situated.
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WP(MD) No. 14572 of 2026
(v) This Agreement and the rights and obligations of
the Parties shall remain in full force and effect pending
the Award in any arbitration proceedings hereunder.
Notwithstanding any dispute between them, each Party
shall proceed with the performance of its respective
obligations pending resolution of the Dispute in
accordance with this Article.
(vi) In the event the Party against whom the Award has
been granted challenges the Award in a court of law, it
shall make an interim payment to the other Party for an
amount equal to 75% (seventy-five per cent) of the
Award, pending final settlement of the Dispute, upon
furnishing an irrevocable Bank Guarantee for 120% of
the aforesaid amount. Upon final settlement, the
interim payment shall be adjusted and any balance
amount due shall be paid or refunded with interest at
the rate of 10% per annum from the date of interim
payment to the date of final settlement of such
balance.”
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WP(MD) No. 14572 of 2026
5. In effect, the petitioner is seeking a novation of the contract by
reducing the scope thereof with regard to the unexecuted stretch of 140
metres. Unless the respondents were to consent thereto, a dispute of this
nature cannot be disposed of in summary proceedings. In the light of the
dispute resolution mechanism contained in the contract, it is appropriate
that the petitioner resorts to such mechanism for the adjudication of the
dispute raised herein. Leaving it open to the petitioner to do so, this writ
petition is disposed of. There shall be no order as to costs.
11-11-2026
Index: No
Speaking order
Neutral Citation: No
PKN
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WP(MD) No. 14572 of 2026
To
1. The Chief Engineer
Ministry of Road Transport and Highways
C-1-A, Rajaji Bhavan
Besant Nagar
Chennai - 600 090
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WP(MD) No. 14572 of 2026
SENTHILKUMAR RAMAMOORTHY, J.
PKN
WP(MD) No. 14572 of 2026
11-11-2026
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