The National Highways Authority of India has successfully defended two major arbitration cases related to the Panipat-Jalandhar section of NH-44, with the arbitral tribunals passing net awards of ₹819.96 crore in favour of the authority.
According to a statement by the Ministry of Road Transport and Highways, the two arbitration matters involved claims by concessionaires exceeding ₹8,375 crore, while NHAI had raised counterclaims amounting to ₹2,888.64 crore.
The disputes were linked to the execution and operation of the Panipat-Jalandhar National Highway project.
The two arbitration matters together involved claims exceeding ₹8,375 crores towards alleged termination payments, compensation for loss of toll revenue, prolongation costs, escalation, extension of the concession period, damages arising from project delays and other associated financial claims.
The ministry said the arbitral tribunals examined contractual provisions, technical records, evidence and expert submissions before upholding several key contentions advanced on behalf of NHAI.
In the first arbitration proceeding, the concessionaire had raised claims exceeding ₹5,443 crore.
These were primarily linked to alleged loss of toll collection, loss of opportunity, termination payments and change-of-scope disputes under the concession agreement.
NHAI contested the claims, maintaining that the contractual termination was valid and attributable to defaults and deficiencies on the part of the concessionaire.
After adjudication, the arbitral tribunal rejected major monetary claims raised against NHAI.
It also accepted several counterclaims and defences put forward by NHAI in relation to contractual breaches, project obligations and expenditure liabilities.
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After considering the claims and counterclaims, the tribunal passed a net award of around ₹115.73 crore in favour of NHAI, along with applicable interest.
The second arbitration matter involved claims exceeding ₹2,931.79 crore. The claimant had sought compensation for alleged delay-related losses, escalation, prolongation expenses, idling costs and other financial impacts during project execution.
NHAI opposed the claims by citing lack of contractual entitlement, insufficient supporting evidence, failure to establish causation and non-compliance with contractual procedures and documentation requirements.
In this matter also, the tribunal rejected the claims advanced against NHAI and upheld major counterclaims of the authority.
After adjustment and set-off of amounts, the tribunal awarded a net sum of around ₹704.23 crore in favour of NHAI.
The two awards together resulted in a net amount of ₹819.96 crore in favour of NHAI.
The ministry said the outcome reflected NHAI’s approach towards protecting public funds, enforcing contractual obligations and ensuring accountability in National Highway project execution.
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