In Brief
The Corporation of Chennai and Hind Agro Industries Limited had executed a Design-Build-Operate-Transfer agreement in 2009 to construct a modern slaughterhouse. The first phase was completed in 2010, but the second phase stalled over a land dispute. After the respondent withdrew from the contract in 2012, it filed a petition claiming land be handed over, while separately raising a damages claim of Rs. 497 crores. The High Court granted relief, directing the Corporation to hand over land. The Supreme Court held that once a contracting party voluntarily abandons the agreement, public interest cannot force resumption of performance by that party while allowing damage claims to remain alive. The Court directed the Corporation to complete the project through a fresh tender and reimbursed the respondent's expenses incurred up to abandonment, with interest.
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