NHAI Secures Major Arbitration Victory in Bareilly–Sitapur BOT Project
The three-member Arbitral Tribunal examined the claims and counterclaims arising out of the concession agreement for the project. The concessionaire had raised 30 claims aggregating to around Rs. 3,177 crore. After detailed consideration, the Tribunal allowed only three claims amounting to Rs. 46 crore, plus applicable interest, while rejecting the majority of the claims.
The Arbitral Tribunal upheld the Supplementary Agreement (SA) dated 30 March 2015 and ruled that the project delays were concurrent. Consequently, the majority of the concessionaire's claims were rejected. NHAI also filed counterclaims, including claims relating to financial losses and public inconvenience. While these counterclaims were not allowed by the Tribunal, NHAI successfully defended itself against the overwhelming financial claims raised by the concessionaire, resulting in substantial protection of public funds.
In a series of recent notable legal wins, NHAI has successfully defended various arbitration cases. In June 2026, the arbitration case related to the Tumkur–Chitradurga six-laning project in Karnataka was awarded in favour of NHAI for Rs. 1,202 crore. Similarly, in April 2026, two arbitration cases related to the Panipat–Jalandhar Highway Project, involving the concessionaire's claims of around Rs. 8,375 crore and NHAI's counterclaims of Rs. 2,888.64 crore, were settled for Rs. 819.96 crore in favour of NHAI. Likewise, in May 2026, the arbitration case related to the six-laning of the Kamrej–Chalthan section of NH-48 in Gujarat, in which the contractor had raised claims of around Rs. 174.49 crore, was settled for only Rs. 54 lakh by the Arbitral Tribunal.
The successful outcome of these arbitration cases underscores NHAI's focus on robust contractual management and an effective legal strategy. It also reinforces NHAI's resolve to ensure the effective utilisation of public funds while maintaining transparency and contractual discipline in the development and management of National Highway infrastructure.
Published on:
27 July 2026
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