A single injunction can stall a highway, a power plant, or a metro line for years, at enormous public cost, over what is often a purely private commercial dispute between the contractor and the government body. The 2018 amendment built an entire mini-code inside the Specific Relief Act just to stop this from happening.
Before 2018, a party to an infrastructure contract — a contractor unhappy with a payment dispute, or a government body unhappy with delays — could obtain a routine civil-court injunction that froze construction entirely while the underlying commercial dispute dragged on for years. The public paid the price: a half-built flyover, a stalled power line, no one able to use it, while the case slowly proceeded. Parliament decided that specific relief law needed to explicitly protect projects that serve the public, without abolishing the underlying dispute-resolution rights of either party.
Section 20A(1) — "No injunction shall be granted by a court in a suit under this Act involving a contract relating to an infrastructure project specified in the Schedule, where granting injunction would cause impediment or delay in the progress or completion of such infrastructure project."
This is an absolute bar, not a discretionary balancing test — if the project falls within the Schedule and the injunction would impede or delay it, the court simply cannot grant the injunction, no matter how strong the underlying case otherwise looks. Section 20A(2) lets the Central Government amend the Schedule by notification as infrastructure needs evolve, subject to being laid before Parliament for 30 days under Section 20A(3), which can modify or annul the notification.
The Schedule (inserted in 2018, read with Sections 20A and 41(ha)) lists five broad categories, each with detailed sub-sectors:
Notice how wide this list actually is — it goes well beyond highways and power plants to cover hospitals, colleges, cold-storage facilities and affordable housing projects. Any contract dispute touching a project in one of these categories can potentially trigger the Section 20A bar.
Section 41(ha) — an injunction cannot be granted "if it would impede or delay the progress or completion of any infrastructure project or interfere with the continued provision of relevant facility related thereto or services being the subject matter of such project."
Section 41(ha) was inserted by the same 2018 amendment, in the same words in substance as Section 20A, but placed inside Section 41's general list of situations where an injunction is refused (covered in the previous post). The two sections work together: 20A is specific to infrastructure-project contracts, while 41(ha) folds the same restriction into the Act's general injunction-refusal framework, and additionally protects the continued provision of the facility or service itself — not just construction, but an already-operating infrastructure asset (say, a running water-treatment plant) cannot be shut down by injunction either.
Section 20B — the State Government, in consultation with the Chief Justice of the High Court, shall designate, by notification, one or more Civil Courts as Special Courts to try suits under this Act relating to infrastructure-project contracts.
The idea is specialisation: judges who regularly handle these often-technical, high-value disputes are expected to develop the expertise to decide them faster and more consistently than a generalist civil court handling infrastructure litigation only occasionally.
Section 20C — notwithstanding anything in the Code of Civil Procedure, 1908, a suit filed under the Act shall be disposed of within twelve months from the date of service of summons on the defendant, extendable by a further period of not more than six months in aggregate, for reasons recorded in writing.
This overrides the CPC's usual, more open-ended timelines. Read together, Sections 20A–20C and 41(ha) form a coherent policy: don't let an injunction freeze the project, route the dispute to a specialised court, and force that court to decide it quickly — so the parties still get their day in court, just without holding the public infrastructure hostage while they get it.
A state government awards a contract to build a 40-km stretch of highway. Midway through construction, a dispute arises over a price-escalation clause, and the contractor seeks an injunction to halt all further work on the highway until the dispute is resolved, hoping this will pressure the government into a favourable settlement.
A road is squarely within the Schedule's "Transport" category. Under Section 20A (and Section 41(ha)), the court cannot grant an injunction halting construction, since doing so would impede or delay the infrastructure project — regardless of how strong the contractor's underlying price-escalation claim might be. The contractor is not without a remedy: he can still pursue his claim for money/damages, or arbitration if the contract provides for it, in a Special Court under Section 20B, which must decide the case within the Section 20C timeline — but the highway keeps getting built while that happens.