NHAI wins two major arbitration cases

Metro India News | DELHI

In a significant victory for the protection of public funds, the National Highways Authority of India (NHAI) has successfully defended two major arbitration disputes related to the Panipat–Jalandhar section of NH-44.The cases involved massive claims totaling over Rs. 8,375 crores filed by concessionaires against NHAI concerning the execution and operation of the highway project.

The claims included alleged termination payments, loss of toll revenue, prolongation costs, escalation, extension of concession period, damages due to project delays, and other financial demands. After detailed hearings, examination of contractual provisions, technical records, evidence and expert submissions, the Arbitral Tribunal passed net awards in favor of NHAI in both cases.

Case 1:

The concessionaire had raised claims exceeding Rs. 5,443 crores, primarily on account of alleged loss of toll collection, loss of opportunity, termination payments, and change-of-scope disputes. NHAI maintained that the termination was valid and resulted from the concessionaire’s defaults. The Tribunal rejected the majority of the claims and accepted several counterclaims and defenses raised by NHAI. It ultimately passed a net award of Rs. 115.73 crores in favor of NHAI, along with applicable interest.

Case 2:

In the second matter, the claimant sought over Rs. 2,931.79 crores towards delay-related losses, escalation, prolongation expenses, idling costs, and other impacts. NHAI strongly opposed the claims citing lack of contractual entitlement, insufficient evidence, and non-compliance with required procedures. The Tribunal substantially rejected the claims and upheld NHAI’s counterclaims. After adjustments and set-offs, it awarded a net sum of Rs. 704.23 crores in favour of NHAI.

In an earlier related case, NHAI had also successfully defended an arbitration concerning the six-laning of the Kamrej–Chalthan section of NH-48 in Gujarat. Against claims of Rs. 174.49 crores, the Tribunal awarded only Rs. 54 lakhs to the contractor. These successive victories underscore NHAI’s firm commitment to safeguarding public money, strict enforcement of contractual terms, and ensuring accountability in the development of National Highways across the country.