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The HC in January last year had upheld the enforceability of an arbitral award directing NHAI to pay approximately Rs114.49 crore to HCC in a dispute over a contract for building road connectivity to Paradip Port. Photo: HT
The HC in January last year had upheld the enforceability of an arbitral award directing NHAI to pay approximately Rs114.49 crore to HCC in a dispute over a contract for building road connectivity to Paradip Port. Photo: HT

Delhi HC asks NHAI to pay remaining 25% of multiple arbitral awards to HCC in 2 weeks

Seventy-five percent of the multiple arbitral awards has already been deposited by NHAI, the Delhi high court was informed

New Delhi: The Delhi high court on Thursday directed the National Highway Authority of India (NHAI) to pay the remaining 25% of multiple arbitral awards—amounting more than Rs2,000 crore—to Hindustan Construction Co Ltd (HCC) within two weeks.

Seventy-five percent of the award has already been deposited by NHAI, bench comprising Justice Vibhu Bakru was informed.

The Rs2,000 crore amount is an outcome of multiple arbitral awards granted in HCC’s favour against NHAI.

An appeal against some of these arbitral award is still pending before the high court, the court was informed.

As per a September 2016 press release by HCC, it had arbitration awards for Rs3,427 crore as of 30 September, 2016 enforceable against NHAI, arising out of various construction projects.

The high court in January last year had upheld the enforceability of an arbitral award directing NHAI to pay approximately Rs114.49 crore to HCC in a dispute over a contract for building road connectivity to Paradip Port in Odisha.

This was upheld by the high court in an appeal by NHAI in September 2017.

As per the contract, the project had to be completed by 18 February 2007, i.e. within 36 months from the date of the contract.

However, the possession of a patch of land in Chandhikhol could not be handed over to HCC within the stipulated time period. This led to an extension of the deadline to 15 June, 2009.

HCC took the matter to an arbitration tribunal for the additional costs and losses incurred by it due to the extension of the time period for the project, for no fault of its own.

The arbitral tribunal had held that NHAI was liable to pay nearly Rs70 crore along with interest of more than Rs44 crore under various sub-heads of claims on additional costs totalling over Rs114 crore.

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