+
Delhi HC stays Arbitral Award against NHAI
ROADS & HIGHWAYS

Delhi HC stays Arbitral Award against NHAI

GMR Pochanpalli Expressways has secured a stay order from the Delhi High Court on the Arbitral Award earlier made to the National Highways Authority of India (NHAI) by the Arbitral Tribunal. The subject matter of the issue relates to the National Highway Project for four-laning of the AdloorYellareddy-Gundlapochanpalli section of the NH-7.
 
The Delhi Court has stayed the Award of the Arbitral Tribunal, which had directed GMR Pochanpalli Expressways to carry out renewal work of the above-mentioned section by relaying the bituminous coat, a type of coat used to form a layer to protect roads from erosion, over the entire stretch of the road which forms part of NH-7 being developed by GMR (Hyderabad-Nagpur section).
 
The stay order has wide ramification for the industry. In this case, the NHAI has been insisting on the relaying of bituminous coat, every five years, even where the pavement riding quality is good and within permissible parameters as per the Concession Agreement. Later, if the High Court finally decides that GMR is not required to carry out the said renewal work every five years if the surface roughness of the pavement is within the permissible limit, it will be a huge relief to the concessionaires across the country who have to undertake unnecessary renewal work at an enormous cost. In this case, GMR has also claimed more than Rs 1 billion towards expenses it has incurred in the renewal work it undertook in the year 2014, which will also be the subject matter of consideration before the High Court.
 
The objection to Arbitral Award was filed by GMR Pochanpalli Expressways and was argued by Advocate Manoj K Singh, Founding Partner, Singh & Associates via videoconference and the argument was heard by Justice C Hari Shankar. Advocate Ankur Mittal represented NHAI. 
 
The issue for consideration before the High Court is whether GMR is required to carry out regular periodic maintenance work every five years in the entire stretch of project highways even for stretches where the surface roughness index and pavement riding quality is well within accepted and agreed parameters. The roughness of the road surface relates to smoothness, and frictional properties of the pavement surface and is in turn related to safety, and ease of the driving path. 
 
NHAI had been pressurising GMR to give a programme for carrying out the second periodic renewal work by June 15, 2020, and had threatened to carry out renewal work on its own at the cost of GMR and levy damages, in case GMR failed to act. There was a threat of cost, consequences, and termination of the Concession Agreement in the event of GMR failing to give a programme and carrying out renewal work. The matter will be heard on July 24, 2020.

GMR Pochanpalli Expressways has secured a stay order from the Delhi High Court on the Arbitral Award earlier made to the National Highways Authority of India (NHAI) by the Arbitral Tribunal. The subject matter of the issue relates to the National Highway Project for four-laning of the AdloorYellareddy-Gundlapochanpalli section of the NH-7. The Delhi Court has stayed the Award of the Arbitral Tribunal, which had directed GMR Pochanpalli Expressways to carry out renewal work of the above-mentioned section by relaying the bituminous coat, a type of coat used to form a layer to protect roads from erosion, over the entire stretch of the road which forms part of NH-7 being developed by GMR (Hyderabad-Nagpur section). The stay order has wide ramification for the industry. In this case, the NHAI has been insisting on the relaying of bituminous coat, every five years, even where the pavement riding quality is good and within permissible parameters as per the Concession Agreement. Later, if the High Court finally decides that GMR is not required to carry out the said renewal work every five years if the surface roughness of the pavement is within the permissible limit, it will be a huge relief to the concessionaires across the country who have to undertake unnecessary renewal work at an enormous cost. In this case, GMR has also claimed more than Rs 1 billion towards expenses it has incurred in the renewal work it undertook in the year 2014, which will also be the subject matter of consideration before the High Court. The objection to Arbitral Award was filed by GMR Pochanpalli Expressways and was argued by Advocate Manoj K Singh, Founding Partner, Singh & Associates via videoconference and the argument was heard by Justice C Hari Shankar. Advocate Ankur Mittal represented NHAI.  The issue for consideration before the High Court is whether GMR is required to carry out regular periodic maintenance work every five years in the entire stretch of project highways even for stretches where the surface roughness index and pavement riding quality is well within accepted and agreed parameters. The roughness of the road surface relates to smoothness, and frictional properties of the pavement surface and is in turn related to safety, and ease of the driving path.  NHAI had been pressurising GMR to give a programme for carrying out the second periodic renewal work by June 15, 2020, and had threatened to carry out renewal work on its own at the cost of GMR and levy damages, in case GMR failed to act. There was a threat of cost, consequences, and termination of the Concession Agreement in the event of GMR failing to give a programme and carrying out renewal work. The matter will be heard on July 24, 2020.

Next Story
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?