NHAI successfully defends Arbitration Case in Chittorgarh–Udaipur NH Project
Published: Oct 17, 2026
By TIOLCorplaws News Service
NEW DELHI, OCT 17, 2026: ACHIEVING a significant legal victory, NHAI has successfully defended its contractual position in an arbitration case against concessionaire Uchit Expressway Private Limited, promoted by TRIL Roads Pvt. Ltd. for six-laning of the 93.5 km long Chittorgarh-Udaipur section of NH-76 in Rajasthan. The Arbitral Tribunal substantially upheld the position of NHAI, thereby safeguarding public resources and reaffirming the contractual framework governing National Highway projects.
The three-member Arbitral Tribunal under the Society for Affordable Redressal of Disputes (SAROD), examined claims and counterclaims arising out of the concession agreement for the project. The Tribunal rejected overall concessionaire claims of Rs. 366.53 crores, which included Rs. 238.18 crore of prolongation cost claim tied to COVID-19 by the concessionaire. After detailed consideration, the Tribunal rejected the claim for prolongation cost and allowed claims amounting to only Rs. 14.51 crore along with conditional refund of Rs. 2.82 Crores to the concessionaire.
In addition, the Tribunal awarded Rs. 33.54 crore (principal) in counter-claims to NHAI. This ruling in favour of NHAI includes Rs. 27 crore for recovery of work dropped from the project scope, Rs. 4.03 crore toward failure to maintain the highway and Rs. 2.51 crore towards unauthorized toll collected after the completion date of the project, in March 2021.
In a series of recent notable legal wins, NHAI has successfully defended various arbitration cases. In July 2026, NHAI successfully defended claims of around Rs. 3,177 crores in the arbitration proceedings pertaining to Bareilly Highways Project Limited (BHPL). Similarly, in June 2026, arbitration case related to Tumkur–Chitradurga 6 laning Project in Karnataka, was awarded in favour of NHAI for Rs. 1,202 crores. Also in April 2026, two arbitration cases in Panipat–Jalandhar Highway Project involving Concessionaire's claims of around Rs. 8,375 Crores and counterclaims of NHAI for Rs. 2,888.64 Crores were settled for Rs. 819.96 Crores in favour of NHAI. Similarly in May 2026, arbitration case related to 6 laning of Kamrej–Chalthan section of NH-48 in Gujarat in which claims of around Rs. 174.49 crore raised by the contractor, was settled for only Rs. 54 lakhs by the Arbitral Tribunal.
The successful resolution of arbitration cases reflects NHAI's commitment to sound contractual management and effective legal strategy. It also reaffirms NHAI's focus on the proper utilization of public funds, while upholding transparency, accountability and contractual discipline in the development and management of National Highway infrastructure.
