Kalpataru Projects International Ltd (KPIL) said its joint venture, Kurukshetra Expressway Private Ltd (KEPL), will challenge a Delhi High Court order that partially set aside an arbitral award granted in its favour against the National Highways Authority of India (NHAI) over a terminated highway project.
In a regulatory filing on Wednesday, KPIL said the High Court, through an order dated July 28, set aside the portion of the arbitral award relating to the termination payment and the interest on it, while upholding the award on all other claims.
The company said KEPL has a “strong case” to challenge the decision and is taking appropriate legal steps, including filing an appeal.
The dispute stems from the termination of the Rohtak-Bawal road project in Haryana, which KEPL terminated in 2021 after toll collection was disrupted during the farmers’ agitation. The joint venture had invoked the force majeure provisions under its concession agreement with NHAI.
In August 2024, KEPL received two arbitral awards in its favour against NHAI, granting various payments, including termination payment, in relation to the terminated project. KPIL had then said the financial impact on the company would be determined only after the awarded claims were crystallised.
Subsequently, in December 2024, the company informed stock exchanges that NHAI had challenged the arbitral awards by filing an application under Section 34 of the Arbitration and Conciliation Act, 1996.
