New Delhi: In a significant legal and financial victory, the National Highways Authority of India (NHAI) has successfully defended itself in a high-value arbitration dispute related to the 151-km Bareilly–Sitapur BOT (Toll) Highway Project in Uttar Pradesh, substantially reducing the financial liability arising from claims made by the concessionaire.
Against claims worth around ₹3,177 crore raised by Bareilly Highways Project Limited (BHPL), a concessionaire promoted by M/s Era Infra Engineering Limited, the three-member Arbitral Tribunal awarded only ₹46 crore plus applicable interest, rejecting the overwhelming majority of the claims. The outcome marks another major success for NHAI in protecting public funds and reinforcing contractual discipline in national highway projects.
Tribunal Rejects Majority of Concessionaire’s Claims
The arbitration proceedings arose from disputes under the concession agreement for the Bareilly–Sitapur BOT (Toll) Project, which was terminated by NHAI in May 2019.
During the proceedings, the concessionaire submitted 30 separate claims aggregating to approximately ₹3,177 crore. After examining the claims and counterclaims in detail, the Arbitral Tribunal allowed only three claims, amounting to ₹46 crore plus applicable interest, while rejecting the remaining claims.
The decision substantially upheld NHAI’s stand and significantly reduced the financial burden that could have arisen from the arbitration proceedings.
Supplementary Agreement Upheld
One of the key findings of the Tribunal was the validation of the Supplementary Agreement (SA) signed on March 30, 2015.
The Tribunal also concluded that the delays in the execution of the project were concurrent in nature, leading to the rejection of most of the concessionaire’s claims for compensation.
According to NHAI, the award reaffirms the contractual framework governing National Highway projects and strengthens confidence in established dispute-resolution mechanisms.
NHAI Counterclaims Not Allowed
NHAI had also filed several counterclaims, including compensation for financial losses and public inconvenience caused during the project.
While the Tribunal did not allow these counterclaims, NHAI described the outcome as a significant success because it successfully defended itself against the substantially larger financial claims raised by the concessionaire, thereby safeguarding public resources.
Series of Major Arbitration Victories
The Bareilly–Sitapur arbitration award adds to a series of legal victories secured by NHAI in recent months, reflecting its increasingly effective contractual and legal strategy.
Some of the notable arbitration outcomes include:
- June 2026: NHAI secured an award of ₹1,202 crore in its favour in the Tumkur–Chitradurga six-laning project in Karnataka.
- April 2026: In the Panipat–Jalandhar Highway Project, claims of around ₹8,375 crore raised by the concessionaire and NHAI’s counterclaims of ₹2,888.64 crore were settled with an award of ₹819.96 crore in favour of NHAI.
- May 2026: In the Kamrej–Chalthan six-laning project on NH-48 in Gujarat, contractor claims of around ₹174.49 crore were reduced to just ₹54 lakh by the Arbitral Tribunal.
These rulings collectively underscore NHAI’s success in limiting financial exposure in major infrastructure disputes while protecting public money.
Focus on Contractual Discipline and Public Interest
NHAI said the successful outcome reflects its emphasis on robust contract management, sound legal strategy and transparent governance in the execution of National Highway projects.
The Authority stated that these arbitration victories reinforce its commitment to ensuring the effective utilisation of public funds while maintaining accountability, contractual discipline and transparency in the development and management of India’s highway infrastructure.
Read also: NHAI Strengthens National Highway Management with Professional O&M Framework for NHIT Assets
