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
Infrastructure Urban

Panasonic Showcases Connected Display Solutions

Panasonic Life Solutions India showcased its integrated display, projection, broadcast and communication technologies at Panasonic Tech Summit 2026 in New Delhi. Hosted through its System Solutions Division, the two-day event highlighted connected technology solutions for education, healthcare, retail, transportation, corporate offices and entertainment.The summit, themed ‘Turning Technology into Value’, featured experience-led zones covering QSR, retail, transit, corporate offices, healthcare, education, security, projection, home theatre and professional displays. Panasonic also introduc..

Next Story
Infrastructure Transport

Kapsch to Deliver India’s First C-ITS Project

"Kapsch TrafficCom will deliver India’s first Cooperative Intelligent Transport Systems project on a key expressway near New Delhi. The project will be implemented with Superwave Communication And Infrasolution Limited to demonstrate how connected mobility can improve road safety and traffic efficiency.The pilot will use real-time connectivity and AI-enabled situational awareness to support road users, especially in high-risk areas such as temporary work zones. Drivers will receive alerts on roadworks, maintenance vehicles, hazardous locations, traffic queues and temporary virtual signage di..

Next Story
Infrastructure Urban

Eurobond Net Profit Rises 44 Per Cent

Euro Panel Products, the parent company of Eurobond, reported a 44.13 per cent year-on-year rise in net profit for FY25–26. The company’s revenue from operations grew 18.91 per cent to Rs 503.20 crore, compared to Rs 423.18 crore in the previous financial year.The company’s full-year EBITDA stood at Rs 56.67 crore, marking a 31.82 per cent increase. Profit after tax rose to Rs 26.56 crore, while net worth increased 20.15 per cent to Rs 160.07 crore. Earnings per share for the year stood at Rs 10.84.Divyam Rajesh Shah, Whole Time Director and CFO, Euro Panel Products, said the company’s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->