The National Highways Authority of India (NHAI) has won two major arbitration awards against concessionaires where it has gained Rs 819.96 crore instead of paying claims of over Rs 8375 crore. 

These arbitration cases related to the Panipat–Jalandhar section of NH-44. The two arbitration matters together involved claims over Rs. 8,375 Crores towards alleged termination payments, compensation for loss of toll revenue, prolongation costs, escalation, extension of concession period, damages arising from project delays and other associated financial claims.

After extensive hearings and detailed examination of contractual provisions, technical records, evidence and expert submissions, the Arbitral Tribunal upheld several critical contentions advanced on behalf of NHAI and passed net awards in favour of the NHAI, a statement by NHAI said. 

In the first arbitration proceeding, claims of over Rs. 5,443 Crores were raised primarily on account of alleged loss of toll collection, loss of opportunity, termination payments and change of scope disputes under the Concession Agreement. NHAI strongly contested the claims, maintaining that the contractual termination was valid and attributable to defaults and deficiencies on the part of the concessionaire.

After hearing claims and counterclaims, the Tribunal passed a net award of around Rs. 115.73 Crores in favour of NHAI along with applicable interest.

The second arbitration matter involved claims exceeding Rs 2,931.79 Crores. The claimant sought compensation towards alleged delay-related losses, escalation, prolongation expenses, idling costs and other financial impacts claimed during project execution. After considering the matter, the Tribunal rejected the claims advanced against NHAI and upheld major counterclaims of the Authority. Following adjustment and set-off of amounts, the Tribunal awarded a net sum of around Rs. 704.23 Crores in favour of NHAI.

Earlier, NHAI successfully defended another arbitration matter related to the six-laning of the Kamrej–Chalthan section of NH-48 in Gujarat, leading to substantial savings of public funds. Against claims of around Rs. 174.49 crore raised by the contractor, the Arbitral Tribunal awarded only Rs. 54 Lakhs to settle the case.

Success in arbitration cases reinforces NHAI’s consistent approach towards protection of public funds, strict enforcement of contractual obligations and accountability in execution of National Highway projects, the statement added.