VidhiSangh

Supreme Court of India · 14/12/2021

STATE OF HARYANA versus M/S. SHIV SHANKAR CONSTRUCTION CO. & ANR.

[2021] 12 S.C.R. 294 · 2021 INSC 888

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Summary

The Court partly upheld an award for additional road-maintenance costs caused by traffic diverted onto a road designed for much lower use. The contractor’s pleaded amount covered expenditure only up to a stated date and reserved later details, so compensation for continuing expenditure was neither beyond the claim nor outside the reference. The higher compensatory rate did not rewrite the ordinary maintenance price. However, compensation could not continue after the additional traffic ceased. The award was retained through January 2008 and set aside for February 2008 to May 2010, with the payable sum to be recalculated.

Issues

  1. Whether compensation for continuing additional maintenance exceeded the claim, reference or contractual rate.
  2. Whether compensation could extend beyond the period of diverted additional traffic.

Held

Result

Appeals partly allowed without costs; compensation confirmed through January 2008, set aside for February 2008 to May 2010, and payable amount directed to be recalculated.

Judgment PDF: Supreme Court of India, [2021] 12 S.C.R. 294.