Delhi High Court Upholds Order Partially Setting Aside JV's Arbitral Award Against NHAI

Delhi High Court, by order dated 28th September 2026, upheld its earlier 28th July 2026 order that partially set aside the arbitral award won by Kurukshetra Expressway Pvt Ltd (a 49.57% JV) against NHAI.

Tue 29 Sep 2026

JV Stake

49.57%

JV Entity

Kurukshetra Expressway Pvt Ltd (KEPL)

Court Order Date

28th September 2026

Claim Status

Termination Payment claim and interest set aside

Project

Rohtak-Bawal section of NH-71 in Haryana

What happened

The Hon'ble Delhi High Court, vide its order dated 28th September 2026, upheld its earlier order dated 28th July 2026. That earlier order had partially set aside an arbitral award in favour of Kurukshetra Expressway Private Limited (KEPL), a joint venture of the company.

Background

• KEPL entered a Concession Agreement with NHAI on 13.07.2010 for four-laning of the Rohtak-Bawal section of NH-71 in Haryana on a DBFOT basis.
• KEPL terminated the concession in 2021, citing forcible suspension of toll collection from December 25, 2020 due to farmers' agitation, treated as a Force Majeure Event.
• On 16th August 2024, KEPL received two arbitration awards in its favour against NHAI, including a "Termination Payment".
• NHAI challenged the awards under Section 34 of the Arbitration and Conciliation Act, 1996.
• By order dated 28th July 2026, the High Court set aside the award relating to Termination Payment and interest thereon, while upholding the awards on all other claims.

The current update

The appeal route under Section 37 was pursued, and the Court's latest order of 28th September 2026 upheld the July order. The company received the order on 28th September 2026 at about 06:32 p.m.

Company's stance

KEPL, based on legal advice, believes it has a strong case to challenge the order and is taking appropriate legal steps, including update an appropriate petition.

Scale

KEPL is a 49.57% joint venture of the company. The Termination Payment claim, which was the largest element in dispute, remains set aside for now, so the potential inflow from that claim is not settled in KEPL's favour at this stage.

What investors may watch

• Whether KEPL's further petition is admitted and how the Termination Payment claim is finally decided.
• Any provisioning or impairment updates relating to the investment in KEPL in future results.

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