NHAI settles arbitration claims worth over Rs 13,000 crore through conciliation

New Delhi: The National highways authority of India (NHAI) has settled arbitration claims worth over Rs 13,000 crore through conciliation since FY 18 as it moves aggressively to reduce its liabilities through out-of-court settlement.

NHAI has constituted three conciliation committees of independent experts (CCIE) of three members each, which are headed by retired officials from the judiciary, senior experts from public administration, finance and the private sector.

“Till Now, 108 cases have been referred to CCIE and claims worth Rs, 13,349 crore have been successfully settled for an amount of Rs. 3,743 crore,” the ministry of road transport and highways said on Wednesday.


NHAI is working on a fast track mode to resolve all the disputes through conciliation, the statement said. “It will not only reduce the legal hassles of both the parties in a long-drawn arbitration process but the money stuck in arbitral cases can be unlocked for revival of private sector,” it added.

In an exclusive interview to ET in January this year, NHAI Chairman Sukhbir Singh Sandhu had said that the national highways building authority will look to settle a majority of its arbitration cases through conciliation, to reduce its liabilities.

NHAI has around 180 cases in arbitration cases, with claims running over Rs 70,000 crore.Going by the historical payout in arbitration cases of around 25%, NHAI stares at a liability of around Rs 17,000 crores.

As per Arbitration Act 2015 and its amendment in 2019, all the arbitration disputes are to be settled within a period of 12~18 months, but it remains difficult, given procedural delays, the highways ministry said.

“However, the possibility of resolution of claims within 12 months is very less, as it involves various procedures. At the same time, the conciliation route ensures amicable settlement of claims in a faster, fairer and transparent manner,” it said.