M/S. A.S. MOTORS PVT. LTD. vs U.O.I. .

The Supreme Court upheld the High Court's decision regarding the termination of the contract between M/s A.S. Motors Pvt. Ltd. and the National Highway Authority of India (NHAI) under the National Highways Act, 1956. The Court affirmed the imposition of penalty and forfeiture of performance security under the contract, while quashing the revocation of the bank guarantee as unreasonable. The judgment clarified that the NHAI acted within its rights to terminate the contract due to violations, thus reinforcing the authority's power to enforce contractual obligations.