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Informist, Wednesday, Sept. 3, 2025

 

NEW DELHI – The Delhi High Court has dismissed NBCC (India) Ltd.'s plea that sought rejection of Ramacivil India Construction Pvt. Ltd.'s INR-743-million recovery suit filed against the former. Ramacivil India had filed the suit challenging the legality of its termination by NBCC from a real estate tender relating to the Amrapali group. Ramacivil India sought recovery of INR 743 million and an injunction against NBCC from initiating any coercive action.

 

The high court noted that no immunity was sought by NBCC from the Supreme Court for the contracts which the company would itself execute directly with third parties after being appointed as a project management consultant by the apex court to complete various projects of the Amrapali group in Noida and Greater Noida in Uttar Pradesh. The high court found merit in Ramacivil India's submission that NBCC did not seek any protection from the Supreme Court against legal action from the contractors engaged by it and rightly so since it would have no basis in law. 

 

The case has its genesis in the Supreme Court order in 2019 appointing NBCC as a project management consultant to complete various projects of the Amrapali group in Noida and Greater Noida. The apex court had also appointed a court receiver for overlooking all the pending projects of Amrapali Group. 

 

In 2020, NBCC had awarded an INR 3.68 billion tender to Ramacivil India for execution of balance work at a plot in Sector 76, Noida, Uttar Pradesh. Ramacivil India said that it duly performed the agreement, however, since NBCC withheld amount due to it under the running bills disputes arose between the parties. Thereafter, NBCC in 2022 terminated the agreement and forfeited the earnest money deposit, security deposit, performance bank guarantee as well as the material and the establishment at the site. In its termination letter, NBCC notified Ramacivil India that the balance work shall be completed at the risk and cost of the latter. Consequently, Ramacivil India filed a suit against NBCC in the high court.

 

NBCC argued that Ramacivil India's suit was not liable to be entertained by the high court, in view of a 2020 order passed by the Supreme Court. In 2020, the apex court had noted the conditions proposed by NBCC, wherein the company was exempt from any legal action in any court for the disputes arising out of the projects relating to Amrapali group in Noida and Greater Noida, said NBCC. 

 

At 1347 IST, the shares of NBCC traded 1.1% higher at INR 102.70 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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