Dilip Buildcon Limited has secured a significant arbitration victory against the National Highways Authority of India (NHAI) concerning the rehabilitation and upgradation of the Kerala Border to Kollegala section of NH-212 in Karnataka. The dispute arose due to delays and breaches by NHAI under the EPC agreement dated June 6, 2014.
The arbitration tribunal ruled in favor of Dilip Buildcon, awarding ₹46.09 crore (including interest) for the following claims:
- Delay in Right of Way (ROW)
- Bonus for early completion
- Payment for withdrawn works
- Withheld interim payments & interest on delays
- Refund of balance retention money
- Arbitration costs
As per the ruling, NHAI must pay the awarded amount immediately. Failure to comply will attract an additional interest of 2% above the SBI base rate, compounded quarterly.
While NHAI has the option to challenge the award under the Arbitration and Conciliation Act, 1996, Dilip Buildcon is prepared to defend its rightful claim.
