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• The National Highways Authority of India (NHAI) has successfully defended an arbitration case related to the six-laning of the Kamrej-Chalthan section of NH-48 in Gujarat, significantly reducing the contractor's claim.
• Against claims worth approximately INR 174.49 crore, the Arbitral Tribunal awarded only INR 54 lakh, resulting in substantial savings of public funds.
• NHAI relied on digital project records, drone imagery and technical documentation to establish that adequate land was available and that the contractor had failed to execute key components of the project.
• The outcome highlights the growing role of technology-driven project monitoring, robust contract management and evidence-based dispute resolution in infrastructure development.
The National Highways Authority of India (NHAI) has secured a major arbitration victory in a dispute arising from the six-laning of the Kamrej-Chalthan section of NH-48 in Gujarat, with the Arbitral Tribunal rejecting the bulk of the contractor's claims and awarding only INR 54 lakh against claims amounting to nearly INR 174.49 crore.
The dispute pertained to a 15-km highway project involving the expansion of the Kamrej–Chalthan stretch from four lanes to six lanes, along with long-term improvements at four identified black spots on the Kamrej–Bharuch section of NH-48. The Engineering, Procurement and Construction (EPC) contract was awarded in June 2016 to M/s SCIW–Unique Construction (JV) at a bid value of INR 241.41 crore, with work commencing in March 2017 after 87.75% of the required land was made available.
During execution, the contractor cited land-related constraints and made limited progress, undertaking mainly road and drainage works while failing to execute critical components such as major structures and flyovers. Owing to continued deficiencies in performance, the contract was mutually foreclosed in May 2020 when the project had achieved physical progress of about 49.79%.
At the time of foreclosure, both parties had agreed that all claims were fully and finally settled, with the contractor undertaking not to raise any future claims. However, in 2022, the contractor initiated arbitration proceedings seeking compensation of around INR 174.49 crore, despite the terms of the foreclosure agreement.
During the proceedings, NHAI presented extensive documentary and digital evidence, including drone videography, project records and technical documentation, demonstrating that sufficient land had been made available for construction and that substantial drainage works had already been completed. The authority also established that the contractor had failed to undertake the project's most critical construction activities, including flyovers and major structures.
Based on the evidence presented, the Arbitral Tribunal, in its award dated March 10, 2026, rejected almost all of the contractor's claims and awarded only INR 54 lakh. NHAI said the outcome underscores the importance of technology-enabled project monitoring, comprehensive documentation and disciplined contract management in protecting public funds and ensuring accountability in the implementation of national highway projects.
Source: PIB
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