Dilip Buildcon Wins Rs 460M Arbitration

07 Feb 2025 CW Team

Infrastructure major Dilip Buildcon has secured an arbitration award of Rs 460 million against the National Highways Authority of India (NHAI) over delays and breaches during the execution of a highway project in Karnataka.

The dispute pertains to the Rehabilitation and Upgradation of the Kerala Border to Kollegala Section of NH 212, awarded to Dilip Buildcon under an Engineering, Procurement, and Construction (EPC) agreement dated June 6, 2014. The project involved two-lane expansion with paved shoulders and four-lane development under the National Highways Development Project (NHDP) Phase IV-A.

Arbitration Ruling The tribunal ruled in favor of Dilip Buildcon, holding NHAI responsible for various delays and breaches that impacted the project's execution. The awarded amount, inclusive of interest up to the date of the ruling, stands at Rs 460 million.

As per the order, NHAI must pay the amount immediately. Failure to comply will attract an interest rate of 2% above the SBI base rate, compounded quarterly, until full payment is made.

Possible Legal Challenge Under the Arbitration and Conciliation Act, 1996, NHAI may challenge the award, in which case Dilip Buildcon has stated it will defend its position appropriately.

The ruling marks a significant financial development in India's highway infrastructure sector, highlighting the challenges faced by contractors due to project delays and contractual disputes.

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