NHAI Successfully Defends Major Arbitration Case in Bareilly-Sitapur Highway Project
The National Highways Authority of India (NHAI) has achieved a significant legal victory in arbitration proceedings against Bareilly Highways Project Limited (BHPL), a concessionaire promoted by Era Infra Engineering Limited. The case concerned the 151 km long Bareilly–Sitapur BOT (Toll) project in Uttar Pradesh, which was terminated by NHAI in May 2019.
The three-member Arbitral Tribunal examined claims and counterclaims arising from the concession agreement. The concessionaire had raised 30 claims aggregating to approximately Rs. 3,177 crores. After detailed consideration, the Tribunal allowed only three claims amounting to Rs. 46 crore plus applicable interest, while rejecting the majority of the claims. This represents a settlement of just 1.45% of the total amount claimed.
Key aspects of the tribunal's decision include upholding the Supplementary Agreement dated 30th March 2015 and determining that project delays were concurrent. The tribunal also rejected NHAI's counterclaims relating to financial losses and public inconvenience, though NHAI successfully defended against the overwhelming financial claims raised by the concessionaire.
This case is part of a series of recent legal wins for NHAI. In June 2026, an arbitration case related to the Tumkur–Chitradurga 6-laning Project in Karnataka was awarded in favour of NHAI for Rs. 1,202 crores. In April 2026, two arbitration cases in the 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. In May 2026, an arbitration case related to the 6-laning of Kamrej–Chalthan section of NH-48 in Gujarat, involving claims of around Rs. 174.49 crore raised by the contractor, was settled for only Rs. 54 lakhs by the Arbitral Tribunal.
The successful outcomes underscore NHAI's focus on robust contractual management and effective legal strategy, reinforcing its resolve to ensure effective utilization of public funds while maintaining transparency and contractual discipline in national highway infrastructure development and management.