Arbitration India

NHAI Prevails in Rs 3,177 Crore Arbitration Against Bareilly Highways Project Limited

By ADR Journal Editorial Desk Published 1 source Arbitration Award Enforcement India Infrastructure Disputes Public Private Contracts India

Stories are grouped across languages, rewritten into a fixed editorial format, and linked to original sources.

TL;DR

  • NHAI successfully defended against Rs 3,177 crore in claims by Bareilly Highways Project Limited.
  • The arbitral tribunal awarded only Rs 46 crore plus applicable interest to the claimant.
  • Most claims by the concessionaire were rejected; NHAI's counterclaims were also not allowed.
  • The decision safeguards public resources in National Highway projects.

Overview

On July 27, 2026, the National Highways Authority of India (NHAI) announced that it had largely prevailed in an arbitration case brought by Bareilly Highways Project Limited (BHPL), a concessionaire of the Bareilly-Sitapur toll project. BHPL had sought claims totaling Rs 3,177 crore after termination of the concession, but the tribunal awarded only Rs 46 crore plus interest, substantially upholding NHAI's position.

What Happened

The arbitration arose from the termination of the concession agreement by NHAI in May 2019 for the 151-km Bareilly-Sitapur project. BHPL, supported by Era Infra Engineering Limited, filed 30 claims aggregating over Rs 3,177 crore.

A three-member Arbitral Tribunal examined these claims, as well as counterclaims by NHAI relating to financial losses and public inconvenience.

After reviewing the evidence and contractual documents, including a supplementary agreement from March 2015, the tribunal found project delays were concurrent and allowed only three of the concessionaire's claims, amounting to Rs 46 crore plus interest.

The tribunal rejected most of BHPL's claims and also dismissed NHAI's counterclaims, but its decision resulted in substantial protection of public funds.

Context

This case is part of a series of recent arbitration outcomes where NHAI successfully defended against significant financial claims linked to highway projects. Recent cases in 2026 involving major projects in Karnataka, Punjab, Haryana, and Gujarat also concluded in NHAI's favor, reinforcing the authority's focus on contract management and transparency.

The arbitration highlights the ongoing importance of ADR mechanisms in large infrastructure projects, particularly in India's national highway sector.

Why It Matters

  • The outcome demonstrates the effectiveness of contractual frameworks and arbitration in resolving high-stakes infrastructure disputes.
  • By securing a favorable award, NHAI avoided significant payouts of public funds and reinforced its commitment to contractual discipline and legal strategy in public-private partnerships.

Sources

Related Stories