Background and Project Details
Kurukshetra Expressway Private Limited (KEPL) is a 49.57% joint venture of Kalpataru Projects International Limited (formerly JMC Projects (India) Limited, which amalgamated with Kalpataru). KEPL entered into a Concession Agreement with NHAI on 13th July 2010 for Four Laning of Rohtak-Bawal Section of NH-71 in Haryana (from Km 363.300 to Km 450.800, approximately 82.553 km) on Design, Build, Finance, Operate and Transfer (DBFOT) basis.
Termination Event
On 7th October 2021, KEPL submitted Notice of Termination of Concession Agreement to NHAI due to forcible suspension of toll collection/user fee account of farmer's agitation/protest with effect from 25th December 2020. This was declared a Force Majeure Event under the Concession Agreement.
Financial Impact of Termination
As disclosed in October 2021, the company indicated it would need to provide for an appropriate amount towards impairment in investment in KEPL, with the amount to be communicated along with Q2 results. The termination also resulted in KEPL's account being treated as Non-Performing Asset (NPA) per RBI Guidelines as it could not pay interest to lenders in October 2021.
Arbitration Proceedings
On 16th August 2024 at about 7:30 PM, KEPL received two arbitration awards in its favor against NHAI, inter-alia awarding various payments including "Termination Payment" in respect of the terminated road project. The company noted that financial impact on Kalpataru Projects would be ascertained only upon crystallization of awarded claims.
Legal Challenge to Arbitration Award
On 11th December 2024 at about 5:49 PM and 5:50 PM, KEPL received advance copies of Section 34 application from NHAI challenging the arbitration awards dated 16th August 2024 under the Arbitration and Conciliation Act, 1996.
Latest Court Order
On 28th July 2026, the Hon'ble High Court partially set aside the arbitral award through its order dated 28th July 2026. Specifically, the award in respect of claim relating to Termination Payment and interest thereon was set aside, while awards on all other claims were upheld. The company received this order on 28th July 2026 at about 3:22 PM.
Future Legal Action
KEPL, based on legal advice, believes it has a strong case to challenge the claim set aside by the Court and is taking appropriate legal steps, including preferring an appeal.
Financial Impact Status
The financial impact on Kalpataru Projects International Limited remains uncertain and subject to final legal outcome and crystallization of claims. No quantified financial impact has been disclosed in any of the filings.