Turning tide: NHAI hits fast lane in arbitration on stricter monitoring

NEW DELHI: NHAI, which handles the highest number of arbitration cases among govt agencies, seems to have seen its fortune change in some recent outcomes due to a greater focus on quality of arbitrators, stricter monitoring of cases and use of AI. Last week, an arbitral tribunal awarded Rs 1,202 crore in favour of NHAI in an arbitration case involving IRB, rejecting the concessionaire’s claims. This is among the largest awards ever secured by NHAI in an arbitration. In another major victory, a tribunal recently dismissed claims worth Rs 8,375 crore filed by Soma-Isolux in the Panipat-Jalandhar highway project, while also awarding Rs 820 crore to NHAI on its counter-claims. Officials said the agency’s AI tool, Marg Sarthi, developed in-house analysed 149 arbitral awards delivered over the past 10 years and identified the reasons behind adverse rulings. The findings are now helping it prepare more effectively for pleadings and strengthen its defence. Currently, NHAI is involved in 140 arbitration cases in which companies have made claims amounting to around Rs 1.2 lakh crore, while the authority has filed counterclaims of Rs 65,000 crore. Between 2002 and 2025, officials said, tribunals delivered 760 arbitral awards and awarded nearly Rs 40,000 crore to highway contractors against claims of around Rs 1 lakh crore. In addition, NHAI settled 321 cases, including some arbitral awards, through conciliation by paying about Rs 27,000 crore against claims of Rs 1 lakh crore. Officials said NHAI’s victory against IRB in the longrunning dispute over the Tumkur-Chitradurga six-laning project in Karnataka is particularly significant. The project, awarded in 2010-11 under the Build-OperateTransfer (BOT) model, required the concessionaire to pay an annual premium of Rs 140 crore, with a 5% annual escalation. Following repeated defaults, NHAI withdrew the premium deferment facility in 2019. Challenging the move, the concessionaire sought restoration of the deferment facility, claimed Rs 95 crore in compensation, and requested an extension of the concession period by 138 days. NHAI contested these claims and filed counter-claims seeking unpaid premium and revenue-share dues. In a majority decision, the threemember tribunal rejected the concessionaire’s monetary claims, restricted the concession period extension to just 23 days, and awarded NHAI Rs 1,202 crore towards outstanding premium and revenue-share dues up to June 2026. According to officials, the biggest reason identified by NHAI’s AI tool for losing cases relates to prolongation and idle-resource claims.Get the latest business news and top stories. Download the TOI App.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.