#GBPL claimed that the NHAI failed to adhere to the concession agreement on constructing the 42 km four-lane bypass project on the national highway.
#GBPL was awarded the project, in 2006, on a semi annuity amount at Rs 26.53 crore on which the parties executed a concession agreement in October, that year.
#After the concession agreement was breached, the two parties settled down to draft two more supplementary agreements, which GBPL claimed that the NHAI again failed to adhere to the agreement which consisted mainly of NHAI handing over of the land and passing the Right of Way.
The Gwalior Bypass Project Ltd (GBPL) won the Rs 500 crore arbitration case against the National Highways Authority of India (NHAI) after the former claimed that the latter failed to adhere to the concession agreement on constructing the 42 km four-lane bypass project in Madhya Pradesh.
GBPL was awarded the project in 2006 on a semi annuity amount at Rs 26.53 crore on which the parties executed a concession agreement in October that year. The project’s operations were supposed to begin the next year in April.
However, GBPL claimed that the NHAI failed to adhere to its obligations as set forth in the agreement and the company could not complete the construction on the scheduled date of October 8, 2009.
On June 30, 2013, GBPL achieved the completion of the construction and NHAI started the toll operation of the highway with effect from July 1, 2013, according to a statement.
Even after the final commercial operation date was declared on April 30, 2014, NHAI delayed the payment of annuity and further coerced GBPL to enter into two supplementary agreements.
As disputes arose between the parties, GBPL invoked the arbitration clause and sought Delhi High Court’s intervention for the appointment of an arbitrator on behalf of NHAI.
On August 14, 2018, the tribunal ruled in favour of GBPL and said that the NHAI was required to pay an amount of Rs 500 crore, inclusive of interest.
GBPL was legally represented by Manoj K Singh, founding partner, Singh & Associates.