NHAI Secures Rs 8,199.6 Million in NH-44 Arbitration Rulings

14 May 2026 CW Team

Two arbitration cases concerning the Panipat–Jalandhar section of National Highway 44 were resolved in favour of the National Highways Authority of India, safeguarding public funds. The disputes involved concessionaire claims exceeding Rs 83,750 million (mn), equivalent to Rs 83.75 billion (bn), and counterclaims by the Authority totalling Rs 28,886.4 million (mn). After hearings and detailed examination of contractual and technical records the Arbitral Tribunal passed net awards that cumulatively amounted to Rs 8,199.6 million (mn) in favour of the Authority.

In the first arbitration proceeding claims exceeding Rs 54,430 million (mn) were advanced on account of alleged loss of toll revenue termination payments and change of scope. The Authority contested entitlement and maintained that contractual termination followed defaults and deficiencies by the concessionaire. The Arbitral Tribunal rejected major monetary claims against the Authority and accepted counterclaims to deliver a net award of Rs 1,157.3 million (mn).

The second arbitration matter related to delay related losses escalation and prolongation expenses arising during project execution with claims in excess of Rs 29,317.9 million (mn). The Authority demonstrated lack of contractual entitlement insufficiency of evidence and non compliance with procedural requirements. The Tribunal substantially rejected the claims and after adjustment awarded a net sum of Rs 7,042.3 million (mn) in favour of the Authority.

Earlier the Authority had defended an arbitration concerning the six-laning of the Kamrej–Chalthan section in Gujarat where claims of Rs 1,744.9 million (mn) were largely dismissed and the Tribunal awarded only Rs 5.4 million (mn). These outcomes were presented as reinforcing the Authority's approach to enforcement of contractual obligations and protection of public resources. The rulings are expected to influence accountability and fiscal prudence in future highway project execution.

Infrastructure Urban

14 May 2026

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