The Madras High Court has restrained Yuzhan Technology India, a Foxconn subsidiary, from continuing certain project works until June 29 amid an ongoing contractual dispute with BNR Infrastructure Projects. According to reports from Bar and Bench, the court has barred Yuzhan from executing project works directly or through third parties until the expiry of a 30-day post-termination period under the contract. The restraint order comes as part of broader legal proceedings between the two companies, with Justice K Kumaresh Babu ruling that Yuzhan cannot claim to continue the works either by itself or through any third parties until June 29, 2026. As the court observed, "In view of the same, this Court is of the view that the respondent cannot claim to continue to do work either by itself or by any third parties till 29.06.2026."
The dispute stems from an agreement signed between Yuzhan and BNR on October 29, 2025, following which Yuzhan issued a letter of award to BNR. As reported by Bar and Bench, the relationship later soured over alleged delays in project execution, prompting Yuzhan to issue a partial termination notice on May 30. The matter is currently before a sole arbitrator, indicating that formal dispute resolution processes are underway to resolve the contractual issues between the parties. Senior Advocate PS Raman, appearing for BNR, argued that there were delays on Yuzhan's part in handing over the site and finalising designs, while Yuzhan argued that BNR had failed to complete the works within the agreed timeline. The company also maintained that it was entitled under the contract to complete the remaining work on its own or through third parties after termination.
BNR approached the High Court seeking interim relief, including an injunction against the invocation of bank guarantees worth ₹310 crore and a stay on the termination notice. According to the court proceedings, BNR is seeking protection from the financial consequences of the termination while the arbitration process continues. The company is also seeking relief from the immediate effects of the termination notice that could impact its ongoing project obligations. BNR further contended that it was entitled to extension of time for delays attributable to Yuzhan and argued that proper corrective notices had not been issued before termination. BNR had also argued that Yuzhan could not engage other contractors or use BNR-owned materials and equipment at the project site immediately after issuing the termination notice.
Justice K Kumaresh Babu examined the contractual provisions governing post-termination obligations and noted that Clause 18.1.3 grants BNR a 30-day period from the date of termination to complete certain obligations. As reported by Bar and Bench, these obligations include ceasing terminated works, handing over completed permanent works and project materials, submitting project documents and assisting in transition. The court found that since the termination notice was issued on May 30, the 30-day period would expire only on June 29. The court refused to examine the merits of the dispute since a sole arbitrator has already been appointed with the consent of the parties, focusing instead on whether Yuzhan could continue the works immediately after issuing the termination notice. Justice Kumaresh Babu held that Yuzhan's rights under Clause 18.1.7 to continue the remaining work would arise only after the expiry of the post-termination period and compliance with the contractual mechanism, stating "Till the time expires under Clause 18.1.3, the respondent cannot be heard to say that under Clause 18.1.7, the respondent is entitled to continue the work."
