NHAI wins arbitration case in over Rs 3,000 crore claim raised by private firm

New Delhi, July 27 (IANS) The NHAI has successfully defended a major arbitration case to safeguard public funds in National Highway projects against claims of Rs. 3,177 crore raised by the concessionaire of the Bareilly–Sitapur toll project, with the Arbitral Tribunal awarding only Rs 46 crore plus applicable interest to settle the case, according to an official statement issued on Monday. 

The arbitration proceedings pertained to Bareilly Highways Project Limited (BHPL), a concessionaire promoted by M/s Era Infra Engineering Limited for the 151-km-long Bareilly-Sitapur BOT (Toll) project in Uttar Pradesh, which was terminated by the NHAI in May 2019.

The Arbitral Tribunal substantially upheld the position of the NHAI, thereby safeguarding public resources and reaffirming the contractual framework governing National Highway projects.

The three-member Arbitral Tribunal examined claims and counterclaims arising out of the concession agreement for the project. The concessionaire had raised 30 claims aggregating to around Rs 3,177 crore. After detailed consideration, the Tribunal allowed only three claims amounting to Rs 46 crore plus applicable interest, while rejecting the majority of the claims.

The tribunal upheld the Supplementary Agreement dated March 30, 2015 and decided that project delays were concurrent and the majority of the concessionaire's claims were rejected. The NHAI also filed counterclaims, including claims relating to financial losses and public inconvenience. While these counterclaims were not allowed by the tribunal, the NHAI successfully defended itself against the overwhelming financial claims raised by the concessionaire, resulting in substantial protection of public funds, the statement said.

In a series of recent notable legal wins, the NHAI has successfully defended various arbitration cases. In June 2026, an arbitration case related to the Tumkur–Chitradurga 6-laning Project in Karnataka was awarded in favour of the NHAI for Rs 1,202 crore.

Also in April 2026, two arbitration cases in the Panipat–Jalandhar Highway Project involving concessionaire’s claims of around Rs. 8,375 crore and counterclaims of the NHAI for Rs 2,888.64 crore were settled for Rs 819.96 crore in favour of NHAI. Similarly, in May 2026, an arbitration case related to the 6-laning of the Kamrej–Chalthan section of NH-48 in Gujarat, in which claims of Rs 174.49 crore were raised by the contractor, was settled for only Rs 54 lakh by the Arbitral Tribunal.

The successful outcome of arbitration cases underscores the NHAI's focus on robust contractual management and effective legal strategy. It also reinforces the NHAI’s resolve to ensure effective utilisation of public funds while maintaining transparency and contractual discipline in the development and management of National Highway infrastructure, the statement added.

--IANS

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