On February 25, 2026, the Delhi High Court made an important decision. M/S Edapally to Kodungallur Highway Private Limited and another company were in a dispute with the National Highway Authority of India (NHAI). They wanted the court to stop NHAI from banning them from working on highway projects.
What They Wanted
The companies, represented by Mr. Anil K. Airi, asked the court to cancel a letter from August 25, 2025. This letter banned them from doing business with NHAI. They also wanted to stop NHAI from putting this ban on their website.
Ban Not Open to Arbitration
NHAI's lawyer, Mr. Santosh Kumar, argued that the issue of banning wasn't something that could be settled by arbitration (a way to resolve disputes outside of court). He said it was a power that the authority had, backed by a Supreme Court decision.
Ban and Arbitration
The companies argued that the ban was related to how they performed the contract, which should be covered by the arbitration clause in their agreement. They mentioned that the Dispute Resolution Board (DRB) had already supported them against the ban.
Petition is Valid
Justice Harish Vaidyanathan Shankar decided the petition was valid. He noted that both companies were connected in the contract and that the ban notice affected both.
Arbitral Tribunal's Role
The court didn't go into detailed examination, leaving that to an arbitral tribunal. The tribunal will decide whether the ban was fair.
The court has temporarily stopped the ban, allowing the companies to continue their business with NHAI for now. It’s a win for Edapally to Kodungallur Highway Private Limited, but the final decision will come from further arbitration.
