NHAI Wins Major Arbitration Battles in Panipat–Jalandhar Highway Disputes

In a major boost to the protection of public funds and contractual accountability in infrastructure projects, the National Highways Authority of India (NHAI) has successfully defended two high-value arbitration cases related to the Panipat–Jalandhar section of National Highway-44.

The disputes involved claims by concessionaires exceeding Rs. 8,375 crore, while NHAI had filed counterclaims amounting to Rs. 2,888.64 crore. Following detailed hearings and examination of contractual records, the arbitral tribunal settled the matters for a net amount of Rs. 819.96 crore in favour of NHAI.

According to officials, the arbitration cases were linked to disputes arising during the execution and operation of the Panipat–Jalandhar highway project. The concessionaires had sought compensation under multiple heads, including alleged termination payments, loss of toll revenue, prolongation costs, escalation expenses, extension of concession periods and damages caused by project delays.

In the first arbitration matter, claims exceeding Rs. 5,443 crore were raised against NHAI, mainly concerning alleged losses in toll collection, termination payments and change-of-scope disputes under the concession agreement. NHAI strongly opposed these claims, maintaining that the contractual termination was valid and that the concessionaire was responsible for project-related deficiencies and defaults.

After detailed adjudication, the arbitral tribunal rejected most of the major claims against NHAI. It also accepted several counterclaims and contractual arguments presented by the authority regarding project obligations and expenditure liabilities. Following adjustments of claims and counterclaims, the tribunal passed a net award of approximately Rs. 115.73 crore in favour of NHAI along with applicable interest.

The second arbitration case involved claims exceeding Rs. 2,931.79 crore. The concessionaire had demanded compensation for alleged delay-related losses, escalation, idling charges and prolongation costs incurred during project execution.

NHAI contested the claims by arguing that the concessionaire lacked contractual entitlement and had failed to provide adequate supporting evidence. The authority also highlighted non-compliance with contractual procedures and documentation requirements.

After reviewing the matter, the arbitral tribunal substantially rejected the concessionaire’s claims and upheld major counterclaims submitted by NHAI. After adjustment and set-off of amounts, the tribunal awarded a net sum of around Rs. 704.23 crore in favour of the highway authority.

Officials said the successful defence in both arbitration matters reflects NHAI’s consistent approach towards enforcing contractual discipline and ensuring accountability in highway construction projects.

Earlier, NHAI had also secured a favourable outcome in another arbitration case linked to the six-laning of the Kamrej–Chalthan section of NH-48 in Gujarat. In that dispute, a contractor had raised claims worth around Rs. 174.49 crore, but the arbitral tribunal awarded only Rs. 54 lakh to settle the matter.

The latest arbitration victories are expected to strengthen confidence in NHAI’s legal and contractual framework while safeguarding large amounts of public money involved in national highway infrastructure projects across the country.