NHAI Prevails in Gujarat NH-48 Six-Laning Arbitration, Contractor's ₹174 Crore Claim Largely Rejected
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TL;DR
- NHAI won arbitration against contractor's ₹174 crore claim over Gujarat's NH-48 six-laning project.
- Arbitral Tribunal awarded only ₹54 lakh to the contractor.
- The contract was foreclosed in 2020 after slow progress and performance issues.
- Digital and documentary evidence played a key role in the tribunal's decision.
Overview
The National Highways Authority of India (NHAI) secured a favorable arbitration award in a dispute with joint venture contractor SCIW-Unique Construction concerning the six-laning of the Kamrej-Chalthan stretch of NH-48 in Gujarat. The contractor's claims of approximately ₹174.49 crore were nearly all rejected by the tribunal, which awarded only ₹54 lakh.
What Happened
The NH-48 six-laning project involved expanding a 15-kilometer stretch between Kamrej and Chalthan in Gujarat, awarded in June 2016 for ₹241.41 crore.
Despite contract provisions, the contractor cited land constraints, showed slow progress, and failed to develop essential structures and flyovers. This led to mutual foreclosure of the contract in May 2020 after less than 50% completion.
At foreclosure, both parties agreed to consider all claims settled, with the contractor agreeing not to file further claims. However, the contractor initiated arbitration in 2022, seeking ₹174.49 crore.
NHAI defended the case with extensive digital and documentary evidence, demonstrating land availability and the contractor's performance deficiencies. The tribunal's March 2026 award granted the contractor only ₹54 lakh, dismissing the bulk of the claim.
Context
The project was developed under the Engineering, Procurement and Construction (EPC) model. The dispute centered on alleged land constraints, contractual compliance, and the scope of permissible post-foreclosure claims.
NHAI highlighted the use of digital project records and monitoring as instrumental in defending its position before the arbitral tribunal.
Why It Matters
- The outcome preserves significant public funds and underscores the importance of thorough documentation and digital monitoring in infrastructure contract management.
- The tribunal's decision may influence future conduct between public authorities and contractors regarding project execution and settlement agreements in India.