A Division Bench comprising acting Chief Justice R B Misra and Justice V K Sharma passed the orders on petitions of the Central government and the Western Command authorities.
The Centre has alleged in its petition that the HP Power Corporation Limited went ahead with the tendering process and allotted the project to a company which commenced work despite several objections raised by the Army.
The petitioners submitted the project is in vicinity of the Ammunition Point of 36 Sector Ordnance Maintenance Platoon and blasting being carried out to construct a road next to the Point could seriously undermine the safety of the ammunition.
The Bench directed only such activities could be undertaken which might not directly or indirectly affect the security measures.
The court listed the matter for further hearing on April 11.