NHAI Defends Arbitration, Saves Public Funds

12 May 2026 CW Team

The project concerned the widening of the 15 km Kamrej–Chalthan section from four lanes to six lanes and included long-term remedial measures for four identified black spots on the Kamrej–Bharuch stretch. The contract was awarded in June 2016 to M/s SCIW–Unique Construction (JV) in Engineering, Procurement and Construction mode (EPC) at a bid cost of Rs 2,414.1 million (Rs 2,414.1 million), with the appointed date declared on 21st March 2017 and 87.75 per cent land availability noted at commencement.

During execution, the contractor cited land constraints, exhibited slow progress and carried out primarily basic road and drainage works, while major structures and flyovers were not undertaken. Owing to persistent deficiencies, the parties mutually foreclosed the contract on 11th May 2020 at a physical progress of around 49.79 per cent, with both sides recording an understanding that claims had been fully and finally settled, a position later challenged by the contractor when arbitration was initiated in 2022.

In arbitration, NHAI submitted comprehensive documentary and digital evidence, including drone videography, digital project records and technical documentation, demonstrating sufficient land availability and the absence of key project components in the contractor's execution. The Arbitral Tribunal, in its award dated 10th March 2026, largely dismissed the contractor's contentions and awarded a nominal amount, highlighting the role of digitisation, stringent contract enforcement and institutional accountability in protecting public resources during highway infrastructure delivery.

The National Highways Authority of India successfully defended an arbitration claim arising from the six-laning of the Kamrej–Chalthan section of National Highway 48 in Gujarat, safeguarding a significant portion of public funds. The contractor advanced a claim of Rs 1,744.9 million (Rs 1,744.9 million), but the Arbitral Tribunal awarded only Rs 5.4 million (Rs 5.4 million), underscoring the impact of digital project monitoring and evidence-based contract management on dispute outcomes. The project concerned the widening of the 15 km Kamrej–Chalthan section from four lanes to six lanes and included long-term remedial measures for four identified black spots on the Kamrej–Bharuch stretch. The contract was awarded in June 2016 to M/s SCIW–Unique Construction (JV) in Engineering, Procurement and Construction mode (EPC) at a bid cost of Rs 2,414.1 million (Rs 2,414.1 million), with the appointed date declared on 21st March 2017 and 87.75 per cent land availability noted at commencement. During execution, the contractor cited land constraints, exhibited slow progress and carried out primarily basic road and drainage works, while major structures and flyovers were not undertaken. Owing to persistent deficiencies, the parties mutually foreclosed the contract on 11th May 2020 at a physical progress of around 49.79 per cent, with both sides recording an understanding that claims had been fully and finally settled, a position later challenged by the contractor when arbitration was initiated in 2022. In arbitration, NHAI submitted comprehensive documentary and digital evidence, including drone videography, digital project records and technical documentation, demonstrating sufficient land availability and the absence of key project components in the contractor's execution. The Arbitral Tribunal, in its award dated 10th March 2026, largely dismissed the contractor's contentions and awarded a nominal amount, highlighting the role of digitisation, stringent contract enforcement and institutional accountability in protecting public resources during highway infrastructure delivery.

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