The NHAI’s wins major arbitration case
NEW DELHI: NHAI, in a recent arbitration case, has got an arbitration order in its favour, rejecting the majority of claims – against the claim of Rs 3,177 crore by a contractor; the arbitral tribunal awarded only Rs 46 crore to settle the case.In an official statement, the highways authority said that the arbitration case involved 151-km Bareilly-Sitapur BOT (Toll) highway project in Uttar Pradesh.The dispute arose after NHAI terminated the concession agreement with Bareilly Highways Project Limited (BHPL), a company promoted by Era Infra Engineering Ltd, in May 2019. The concessionaire had sought compensation of around Rs 3,177 crore through 30 claims before a three-member arbitral tribunal.In its award, the tribunal allowed only three claims worth about Rs 46 crore, along with applicable interest, while rejecting the overwhelming majority of the claims. The tribunal also upheld the validity of the “supplementary agreement” signed on March 30, 2015, and ruled that delays in the project were concurrent, weakening the concessionaire’s case.NHAI had filed counterclaims relating to financial losses and public inconvenience caused by the stalled project. Although these counterclaims were not accepted, the authority successfully defended itself against the bulk of the concessionaire’s claims, substantially reducing its potential financial exposure.The latest ruling adds to a series of arbitration successes for NHAI this year. In June, it secured an award of Rs 1,202 crore in the Tumkur-Chitradurga six-laning project in Karnataka. Earlier, arbitration in the Panipat-Jalandhar highway project involving claims exceeding Rs 8,000 crore was settled at Rs 819.96 crore in NHAI’s favour. In another case relating to the Kamrej-Chalthan section of NH-48 in Gujarat, claims of Rs 174.5 crore were reduced to just Rs 54 lakh.toied
