NHAI successfully defends arbitration claims in Panipat–Jalandhar highway project disputes

New Delhi: National Highways Authority of India (NHAI) has successfully defended two major arbitration cases related to the Panipat–Jalandhar section of NH-44, resulting in substantial savings of public funds, according to an official statement issued on Tuesday.

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The disputes involved claims by concessionaires exceeding Rs 8,375 crore, while NHAI had filed counterclaims amounting to Rs 2,888.64 crore. Following arbitration proceedings, the matters were settled for a net amount of Rs 819.96 crore in favour of NHAI.

According to the statement, the claims pertained to alleged termination payments, compensation for loss of toll revenue, prolongation costs, escalation, extension of concession period, project delays and other financial demands linked to the execution and operation of the highway project.

In the first arbitration matter, concessionaires had raised claims exceeding Rs 5,443 crore, primarily related to alleged loss of toll collection, termination payments, loss of opportunity and change-of-scope disputes under the concession agreement.

NHAI contested the claims, arguing that the contractual termination was valid and resulted from defaults and deficiencies on the part of the concessionaire. After detailed hearings, the arbitral tribunal rejected major claims against NHAI and upheld several counterclaims and defences raised by the authority. The tribunal passed a net award of around Rs 115.73 crore in favour of NHAI, along with applicable interest.

In the second arbitration case, the claimant sought over Rs 2,931.79 crore towards alleged delay-related losses, escalation, prolongation expenses, idling costs and other financial impacts during project execution.

NHAI opposed the claims, citing lack of contractual entitlement, inadequate evidence and non-compliance with contractual procedures. The tribunal substantially rejected the claims and upheld major counterclaims of the authority. After adjustment and set-off of amounts, the tribunal awarded a net sum of around Rs 704.23 crore in favour of NHAI.

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The authority also recalled its recent success in another arbitration matter linked to the six-laning of the Kamrej–Chalthan section of NH-48 in Gujarat, where claims of around Rs 174.49 crore were settled with an award of only Rs 54 lakh.

NHAI said the successful defence in these arbitration matters reflects its continued focus on protecting public funds, ensuring accountability and enforcing contractual obligations in national highway projects.

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