IRB Infra gets arbitration award of Rs419 crore from IRB Pathankot Amritsar Toll Road
1 min read 22 Jun 2022, 08:06 PM ISTIRB Infrastructure Developers has received Rs308 crore towards part payment i.e., 75% of the total arbitration award from the NHAI
PremiumIRB Infra receives Arbitration Award of Rs. 419 Crores from IRB Pathankot Amritsar Toll Road Ltd.
Highway developer, IRB Infrastructure Developers Ltd., has received ₹308 crores towards part payment i.e., 75% of the total Arbitration Award from the National Highway Authority of India (NHAI).
Commenting on the development, Virendra D. Mhaiskar, Chairman & Managing Director, IRB Infrastructure Developers Ltd. said, “We deeply appreciate the steps taken by the Cabinet Committee on Economic Affairs for providing interim cashflow access to developers in clear award scenarios till a final verdict is closed."
He further added, “Huge opportunities are lined up in the sector and we look forward to participating and investing in the same to our best capabilities."
Earlier, pursuant to the measures approved by the Cabinet Committee on Economic Affairs (CCEA) for revival of construction sector, it had directed the Government Agencies to pay 75% of Arbitral Award amount against the Bank Guarantee where Government Agencies have challenged the Arbitral Award.
To re-iterate, in July 2021, the IRB Pathankot Amritsar Toll Road Ltd. (IPTRL) had won the arbitration award of 518 days extension in Concession period and Rs.419 Crores (including Interest) towards the delay in completion of the construction of the project on account of the reasons not attributable to the Company.
The NHAI had challenged the decision before Delhi High Court. The Delhi High Court, while upholding the Arbitral Tribunal’s decision, had directed the NHAI to release 75% of the arbitration award to the company.
