**Executive Summary**
On May 12, 2026, the National Highways Authority of India (NHAI) successfully defended major arbitration claims exceeding Rs. 8,375 crores related to the Panipat–Jalandhar section of NH-44. The Arbitral Tribunal rejected the concessionaires' demands and instead passed net awards totaling Rs. 819.96 crores in favor of NHAI based on upheld counterclaims for contractual breaches. These rulings, along with a separate success regarding the NH-48 project in Gujarat, emphasize NHAI's focus on protecting public funds through strict enforcement of contractual obligations.
**Key Points / Main Content**
* **Arbitration Outcomes for Panipat–Jalandhar Project (NH-44)**
* The disputes involved claims by concessionaires for termination payments, loss of toll revenue, escalation, and project delays totaling over Rs. 8,375 crores.
* NHAI presented counterclaims amounting to Rs. 2,888.64 crores, citing contractual defaults and expenditure liabilities on the part of the concessionaires.
* The Arbitral Tribunal passed net awards in favor of NHAI for a total of Rs. 819.96 crores after detailed examination of technical records and evidence.
* **Specific Case Adjudications**
* **First Proceeding:** Claims exceeding Rs. 5,443 crores were rejected; the Tribunal awarded NHAI approximately Rs. 115.73 crores plus interest, validating the authority's contractual termination.
* **Second Proceeding:** Claims of Rs. 2,931.79 crores were substantially rejected due to insufficient evidence and failure to establish causation; NHAI was awarded a net sum of Rs. 704.23 crores.
* **Additional Project Defense (NH-48)**
* NHAI successfully defended a claim of Rs. 174.49 crores regarding the Kamrej–Chalthan section in Gujarat.
* The contractor was awarded only Rs. 54 lakhs, resulting in significant savings of public funds.
* **Legal and Procedural Basis**
* Claims were rejected based on lack of contractual entitlement, non-compliance with documentation requirements, and failure to follow contractual procedures.
* The decisions reinforce the importance of accountability and strict adherence to project obligations in National Highway execution.
**Impact Analysis**
**NHAI (National Highways Authority of India)**
**Impact**
The authority successfully safeguarded public funds by avoiding multi-crore payouts and securing net awards exceeding Rs. 819 crores. The rulings validate NHAI's legal standing regarding contractual terminations and counterclaims.
**Action Required**
Maintain rigorous documentation and evidence-gathering processes for project execution to continue defending against future claims and enforcing contractor accountability.
**Concessionaires and Contractors**
**Impact**
Claimants faced the rejection of high-value monetary demands and are now liable to pay substantial net awards to NHAI due to established contractual breaches and defaults.
**Action Required**
Strictly adhere to contractual provisions, fulfill project obligations, and ensure full compliance with documentation and procedural requirements to mitigate the risk of rejected claims and financial liabilities.
Key Entities Referenced
NHAI (National Highways Authority of India): The primary authority responsible for managing national highway projects that successfully defended arbitration claims to safeguard public funds.
Arbitral Tribunal: The adjudicating body that examined contractual provisions and evidence to pass awards in favor of NHAI across multiple high-value disputes.
Panipat–Jalandhar section of NH-44: The central project location where major arbitration cases involving claims exceeding Rs. 8,375 crores were settled.
Concession Agreement: The fundamental contractual document defining the rights, obligations, and termination conditions for the highway projects under dispute.
Ministry of Road Transport & Highways
NHAI Successfully Defends Arbitration Claims in
Panipat–Jalandhar Highway Project Disputes
Two major arbitration cases involving claims by
concessionaires exceeding Rs. 8,375 crores and
counterclaims by NHAI amounting to Rs. 2,888.64 crores
were settled for a net amount of Rs. 819.96 crores in favour of
NHAI.
Posted On: 12 MAY 2026 5:52PM by PIB Delhi
Safeguarding public funds in National Highway projects, NHAI has successfully defended two major
arbitration cases related to the Panipat–Jalandhar section of NH-44. The disputes involved high-value
claims raised by concessionaires against NHAI in connection with the execution and operation of the
National Highway project. The two arbitration matters together involved claims exceeding Rs. 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.
After extensive hearings and detailed examination of contractual provisions, technical records, evidence
and expert submissions, the Hon’ble Arbitral Tribunal upheld several critical contentions advanced on
behalf of NHAI and passed net awards in favour of NHAI.
In the first arbitration proceeding, claims exceeding Rs. 5,443 crores were raised primarily on account of
alleged loss of toll collection, loss of opportunity, termination payments and change-of-scope disputes
under the Concession Agreement. NHAI strongly contested the claims, maintaining that the contractual
termination was valid and attributable to defaults and deficiencies on the part of the concessionaire.
After detailed adjudication, the Hon’ble Arbitral Tribunal rejected major monetary claims raised against
NHAI. The Tribunal also accepted several counterclaims and defences put forward by NHAI concerning
contractual breaches, project obligations and expenditure liabilities. After hearing the claims and
counterclaims, the Hon’ble Tribunal passed a net award of around Rs. 115.73 crores in favour of NHAI
along with applicable interest.
The second arbitration matter involved claims exceeding Rs. 2,931.79 crores. The claimant sought
compensation towards alleged delay-related losses, escalation, prolongation expenses, idling costs and
other financial impacts claimed during project execution. NHAI comprehensively opposed the claims by
demonstrating lack of contractual entitlement, insufficiency of supporting evidence, failure to establish
causation and non-compliance with contractual procedures and documentation requirements.
After considering the matter, the Hon’ble Tribunal substantially rejected the claims advanced against
NHAI and upheld major counterclaims of the Authority. Following adjustment and set-off of amounts, the
Tribunal awarded a net sum of around Rs. 704.23 crores in favour of NHAI.Earlier, NHAI successfully defended another arbitration matter related to the six-laning of the Kamrej–
Chalthan section of NH-48 in Gujarat, leading to substantial savings of public funds. Against claims of
around Rs. 174.49 crores raised by the contractor, the Arbitral Tribunal awarded only Rs. 54 lakhs to settle
the case.
Success in these arbitration cases reinforces NHAI’s consistent approach towards the protection of public
funds, strict enforcement of contractual obligations and accountability in the execution of National
Highway projects.
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GDH/DS/HJ
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