NATIONAL HIGHWAYS AUTHORITY OF INDIA vs M/S ITD CEMENTATION INDIA LTD.

The Supreme Court addressed the issue of additional royalty payable under a contract for the execution of highway work, specifically concerning the upward revision of royalty on minor minerals by the State of Tamil Nadu effective from 01.11.2002. The Court held that the contract's Clause 13.4, which included all duties, taxes, and levies as of 28 days prior to bid submission, was binding, and thus the appellant was not liable to pay the additional royalty. The judgment of the Delhi High Court was set aside, favoring the appellant's interpretation of the contract terms.