The NHAI has defended a significant arbitration case concerning the Bareilly–Sitapur toll project, where the concessionaire had claimed Rs. 3,177 crore. The Arbitral Tribunal awarded only Rs. 46 crore plus interest, rejecting most of the concessionaire’s claims. This decision safeguards public funds and upholds the contractual framework for National Highway projects.
The arbitration involved BHPL, a concessionaire for the Bareilly-Sitapur BOT project in Uttar Pradesh, terminated by the NHAI in May 2019. The Tribunal upheld NHAI’s position, protecting public resources and rejecting the majority of the concessionaire’s claims.
Examining claims from the concession agreement, the Tribunal allowed only three claims totaling Rs. 46 crore plus interest, out of the concessionaire’s 30 claims amounting to Rs. 3,177 crore. The NHAI’s successful defense against the concessionaire’s financial claims ensures substantial protection of public funds.
In recent legal victories, the NHAI has successfully defended various arbitration cases, including the Tumkur–Chitradurga 6-laning Project in Karnataka. The NHAI’s focus on robust contractual management and effective legal strategy has led to favorable outcomes in arbitration cases, emphasizing transparency and contractual discipline in National Highway infrastructure development.
