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• National Highways Authority of India has secured a favourable arbitration ruling in a dispute linked to the six-laning of the Kamrej–Chalthan stretch of NH-48 in Gujarat.
• The arbitral tribunal awarded only INR 54 lakh against contractor claims of around INR 174.49 crore related to the stalled highway widening project.
• The dispute involved a 15-km engineering, procurement and construction contract awarded in 2016 to SCIW–Unique Construction (JV) at a project cost of INR 241.41 crore.
• NHAI stated that the contract was mutually foreclosed in 2020 after physical progress reached approximately 49.79 per cent and both parties had agreed to full settlement of claims.
• The authority relied on drone videography, digital project records, and technical documentation during arbitration proceedings to defend its position and demonstrate contractor non-performance.
National Highways Authority of India has successfully defended an arbitration matter concerning a highway widening project in Gujarat, with the arbitral tribunal rejecting the majority of claims amounting to nearly INR 174.49 crore raised by the contractor involved in the project. Advertisement
The dispute related to the six-laning of the 15-km Kamrej–Chalthan section of NH-48 in Gujarat, including implementation of long-term remedial measures for four accident-prone black spots on the Kamrej–Bharuch corridor. The project had been awarded in June 2016 under the Engineering, Procurement and Construction (EPC) model to SCIW–Unique Construction (JV) at a bid value of INR 241.41 crore.
According to official records, the appointed commencement date for the project was March 21, 2017, with approximately 87.75 per cent land availability at the time work began. However, during execution, the contractor repeatedly cited land acquisition and site availability constraints while project progress remained significantly delayed.
NHAI stated that only basic road and drainage-related works were executed during the construction period, while critical infrastructure components including flyovers and major structures were not undertaken as per contractual obligations. Owing to continued deficiencies in performance, the contract was mutually foreclosed in May 2020 after physical progress reached around 49.79 per cent.
At the time of foreclosure, both parties had reportedly agreed that all claims stood fully and finally settled, with the contractor undertaking not to pursue future claims against the authority. However, in 2022, the contractor initiated arbitration proceedings seeking approximately INR 174.49 crore from NHAI despite the foreclosure agreement terms.
During arbitration proceedings, National Highways Authority of India presented extensive documentary and digital evidence before the tribunal. This included drone videography, technical records, and digital project monitoring documentation intended to demonstrate that adequate land was available for execution of the six-laning works and that substantial drainage infrastructure had already been completed along the right of way.
The authority further argued that the contractor had failed to execute key portions of the project, including major structures and flyovers, which contributed significantly to the eventual foreclosure of the contract. Based on the submissions and evidence presented, the arbitral tribunal, in its award dated March 10, 2026, rejected most of the contractor’s claims and awarded only INR 54 lakh in favour of the claimant.
NHAI stated that the outcome highlighted the increasing role of digitisation, technology-led project monitoring, and evidence-based contract management in infrastructure dispute resolution. The authority added that the case reinforced the importance of contractor accountability and protection of public funds in national highway development projects.
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