In Brief
A public interest litigation sought mandamus to compel completion of a stalled 329-kilometre road project in Nagaland. The High Court had directed the defaulting contractor to continue work and ordered payment of Rs. 540.31 crores for alleged prior work. The Supreme Court allowed the Union of India's appeal, holding that courts should not mandate continued performance by a contractor who has breached obligations. The Court permitted re-tendering of the project and directed its completion within 3.5 years. Claims for compensation from contract cancellation must be resolved through the contractual arbitration clause, not judicial direction, balancing public interest with contractual rights.
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