In a recent court decision, the High Court of Judicature at Madras rejected a request by Ramky Infrastructure against I.T. Expressway. The case was about a disagreement over a construction project involving delays and money issues.
On September 29, 2005, I.T. Expressway gave Ramky Infrastructure a project to build and take care of service paths and improve the ECR Link Road in Chennai. The project was supposed to be done by May 12, 2006, but there were many delays, leading to more time being given and new agreements being made.
Ramky Infrastructure faced delays, which led to more time being given until October 14, 2006. A new agreement on November 29, 2006, removed the ECR Link Road from the original project. Another agreement was made on July 6, 2007, with a total project cost of over Rs. 6.63 crore.
Ramky said that I.T. Expressway didn't pay their bills, which led them to stop work in August 2008. Even after many reminders, payments were late, causing money problems and eventually stopping the project.
"Ramky Infrastructure told I.T. Expressway that they couldn't keep working because of money problems due to the late payments."
Ramky asked for a formal decision on December 15, 2008, asking for over Rs. 10 crore for unpaid bills and extra costs. They also wanted money for losses because the contract ended early.
The decision-making group partly agreed with Ramky on some points but also agreed with I.T. Expressway's claim for extra costs because the work wasn't finished. The group ordered Ramky to pay Rs. 1.68 crore to I.T. Expressway.
Judge N. Anand Venkatesh rejected Ramky's request to overturn the decision made by the decision-making group. The court found no major wrongdoing by I.T. Expressway and agreed with the group's decision, including the extra costs claimed by I.T. Expressway.
"The decision by the decision-making group is supported by enough reasons, and this Court does not find any reason to consider it wrong or illegal."
The court agreed with the decision-making group and ruled that Ramky Infrastructure must pay I.T. Expressway Rs. 1.68 crore. This decision shows how important it is to follow contract rules and the challenges that come with big construction projects.
Date of Judgment: December 15, 2025
