NHAI settles arbitration claims in Panipat-Jalandhar Highway project cases

New Delhi: The National Highways Authority (NHAI)of India has said two arbitration cases have been settled, with a tribunal awarding a settlement amount of Rs 819.96 crore in favour of the state-owned entity.

The cases pertain to the Panipat-Jalandhar section of the NH-44 project dispute, involving alleged termination payments, compensation for loss of toll revenue and prolongation costs, NHAI said in a statement.

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"Two major arbitration cases involving claims by concessionaires exceeding Rs 8,375 crore and counterclaims by NHAI amounting to Rs 2,888.64 crore were settled for a net amount of Rs 819.96 crore in favour of NHAI," it said.

After extensive hearings and detailed examination of contractual provisions, technical records, evidence and expert submissions, the Arbitral Tribunal upheld several critical contentions advanced on behalf of NHAI and passed net awards in favour of NHAI, the statement added.

In the first arbitration proceeding, claims exceeding Rs 5,443 crore were raised primarily on account of alleged loss of toll collection, loss of opportunity, termination payments and change-of-scope disputes under the concession agreement, it said.

NHAI contested the claims, maintaining that the contractual termination was valid and attributable to defaults and deficiencies on the part of the concessionaire.

The second arbitration matter involved claims exceeding Rs 2,931.79 crore. The claimant sought compensation towards alleged delay-related losses, escalation, prolongation expenses, idling costs and other financial impacts claimed during project execution.

NHAI opposed the claims by demonstrating a lack of contractual entitlement, insufficiency of supporting evidence, failure to establish causation and non-compliance with contractual procedures and documentation requirements, according to the statement.

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Success in these arbitration cases reinforces NHAI's consistent approach towards the protection of public funds, strict enforcement of contractual obligations and accountability in the execution of National Highway projects, it added.

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