National Highway Authority Of INDIA vs. M/S Karnataka Neeravari Nigam LTD

Facts

The National Highways Authority of India (NHAI) filed a writ petition seeking a mandamus to direct Karnataka Neeravari Nigam Limited (KNNL) and others to stop laying pipelines within the right of way of National Highway-4 and to remove illegally laid pipelines. KNNL admitted to laying the pipeline within the NHAI's right of way and had provided an undertaking to shift the pipeline at its own cost if required for future development or safety. The NHAI stated that the 6-laning of the highway was underway and that it had incurred Rs. 12.94 crores plus GST for shifting the pipeline, entrusting the work to M/s. PNC Infratech Private Limited and M/s.IRCON Davangere Haveri Highway Limited. The NHAI sought reimbursement of these costs from KNNL.

Held

The Court held that KNNL was bound by its undertaking to bear the cost of shifting the pipeline. The Court reasoned that KNNL had laid the pipeline despite objections from NHAI and had explicitly given an undertaking to alter, remove, or shift the pipeline at its own cost for future developments of the National Highways. Since the 6-laning of National Highway-4 was in progress, it was indisputable that KNNL had to abide by its undertaking. The Court found it inequitable for NHAI to bear the cost of a mistake made by KNNL. Therefore, the Court directed KNNL to pay Rs. 12.94 crores to NHAI within three months. The State Government was also directed to ensure KNNL was provided with adequate funds to meet this payment. The issue of whether the pipeline was illegally laid was not expressly decided, but the focus was on the undertaking.

Key Issues

1. Whether the Karnataka Neeravari Nigam Limited (KNNL) is bound by its undertaking to bear the cost of shifting the pipeline laid within the National Highway's right of way, given that the National Highways Authority of India (NHAI) has undertaken further development of the highway? (Question of law) Petitioner's arguments (NHAI): The NHAI argued that KNNL had provided a clear undertaking to bear the cost of shifting the pipeline for future development of the highway. Since the 6-laning project is in progress, KNNL must fulfill its commitment and reimburse the NHAI for the expenses incurred in shifting the pipeline, which amounted to Rs. 12.94 crores plus GST. Respondents' arguments (KNNL): KNNL contended that the prayer in the writ petition could not be granted and that it would find it difficult to pay the Rs. 12.94 crores. The judgment does not record specific arguments from other respondents.