The National Highways Authority of India (NHAI) succeeded in an arbitration case regarding the six-laning of the Kamrej–Chalthan section of NH-48 in Gujarat. The Arbitral Tribunal settled the matter by awarding only Rs 54 lakh, significantly less than the contractor’s claim of around Rs. 174.49 crore. This outcome emphasizes the importance of digital project monitoring and robust documentation by the NHAI.
During the arbitration process, the NHAI presented detailed evidence, including drone videography and digital project records, to support its case. The evidence showed that the contractor had not completed crucial aspects of the project, such as major structures and flyovers, leading to the termination of the contract. The NHAI’s emphasis on evidence-based contract management played a key role in the favorable decision.
The dispute revolved around the widening of the Kamrej–Chalthan Section of NH-48, awarded to the contractor SCIW–Unique Construction (JV) in 2016. Despite land-related challenges and slow progress cited by the contractor, the work did not align with the contract terms, resulting in the contract’s foreclosure in 2020. The subsequent arbitration, initiated by the contractor in 2022, ultimately favored the NHAI, highlighting the importance of technology-driven project monitoring in infrastructure development.
The Arbitral Tribunal’s ruling rejecting the majority of the contractor’s claims underscores the NHAI’s commitment to ensuring contractor accountability and protecting public funds in national highway projects. The case serves as a reminder of the significance of prudent contract management and digitization in infrastructure development and dispute resolution.
