Delhi HC stays Arbitral Award against NHAI
ROADS & HIGHWAYS

Delhi HC stays Arbitral Award against NHAI

GMR Pochanpalli Expressways has secured a stay order from the Delhi High Court on the Arbitral Award earlier made to the National Highways Authority of India (NHAI) by the Arbitral Tribunal. The subject matter of the issue relates to the National Highway Project for four-laning of the AdloorYellareddy-Gundlapochanpalli section of the NH-7.
 
The Delhi Court has stayed the Award of the Arbitral Tribunal, which had directed GMR Pochanpalli Expressways to carry out renewal work of the above-mentioned section by relaying the bituminous coat, a type of coat used to form a layer to protect roads from erosion, over the entire stretch of the road which forms part of NH-7 being developed by GMR (Hyderabad-Nagpur section).
 
The stay order has wide ramification for the industry. In this case, the NHAI has been insisting on the relaying of bituminous coat, every five years, even where the pavement riding quality is good and within permissible parameters as per the Concession Agreement. Later, if the High Court finally decides that GMR is not required to carry out the said renewal work every five years if the surface roughness of the pavement is within the permissible limit, it will be a huge relief to the concessionaires across the country who have to undertake unnecessary renewal work at an enormous cost. In this case, GMR has also claimed more than Rs 1 billion towards expenses it has incurred in the renewal work it undertook in the year 2014, which will also be the subject matter of consideration before the High Court.
 
The objection to Arbitral Award was filed by GMR Pochanpalli Expressways and was argued by Advocate Manoj K Singh, Founding Partner, Singh & Associates via videoconference and the argument was heard by Justice C Hari Shankar. Advocate Ankur Mittal represented NHAI. 
 
The issue for consideration before the High Court is whether GMR is required to carry out regular periodic maintenance work every five years in the entire stretch of project highways even for stretches where the surface roughness index and pavement riding quality is well within accepted and agreed parameters. The roughness of the road surface relates to smoothness, and frictional properties of the pavement surface and is in turn related to safety, and ease of the driving path. 
 
NHAI had been pressurising GMR to give a programme for carrying out the second periodic renewal work by June 15, 2020, and had threatened to carry out renewal work on its own at the cost of GMR and levy damages, in case GMR failed to act. There was a threat of cost, consequences, and termination of the Concession Agreement in the event of GMR failing to give a programme and carrying out renewal work. The matter will be heard on July 24, 2020.

GMR Pochanpalli Expressways has secured a stay order from the Delhi High Court on the Arbitral Award earlier made to the National Highways Authority of India (NHAI) by the Arbitral Tribunal. The subject matter of the issue relates to the National Highway Project for four-laning of the AdloorYellareddy-Gundlapochanpalli section of the NH-7. The Delhi Court has stayed the Award of the Arbitral Tribunal, which had directed GMR Pochanpalli Expressways to carry out renewal work of the above-mentioned section by relaying the bituminous coat, a type of coat used to form a layer to protect roads from erosion, over the entire stretch of the road which forms part of NH-7 being developed by GMR (Hyderabad-Nagpur section). The stay order has wide ramification for the industry. In this case, the NHAI has been insisting on the relaying of bituminous coat, every five years, even where the pavement riding quality is good and within permissible parameters as per the Concession Agreement. Later, if the High Court finally decides that GMR is not required to carry out the said renewal work every five years if the surface roughness of the pavement is within the permissible limit, it will be a huge relief to the concessionaires across the country who have to undertake unnecessary renewal work at an enormous cost. In this case, GMR has also claimed more than Rs 1 billion towards expenses it has incurred in the renewal work it undertook in the year 2014, which will also be the subject matter of consideration before the High Court. The objection to Arbitral Award was filed by GMR Pochanpalli Expressways and was argued by Advocate Manoj K Singh, Founding Partner, Singh & Associates via videoconference and the argument was heard by Justice C Hari Shankar. Advocate Ankur Mittal represented NHAI.  The issue for consideration before the High Court is whether GMR is required to carry out regular periodic maintenance work every five years in the entire stretch of project highways even for stretches where the surface roughness index and pavement riding quality is well within accepted and agreed parameters. The roughness of the road surface relates to smoothness, and frictional properties of the pavement surface and is in turn related to safety, and ease of the driving path.  NHAI had been pressurising GMR to give a programme for carrying out the second periodic renewal work by June 15, 2020, and had threatened to carry out renewal work on its own at the cost of GMR and levy damages, in case GMR failed to act. There was a threat of cost, consequences, and termination of the Concession Agreement in the event of GMR failing to give a programme and carrying out renewal work. The matter will be heard on July 24, 2020.

Next Story
Real Estate

The Only Way is Up!

In 2025, India’s real-estate market will be driven by a confluence of economic, demographic and policy-driven factors. Among these, Boman Irani, President, CREDAI National, counts rapid urbanisation, the rise of the middle class, policy reforms like RERA and GST rationalisation, and the Government’s decision to allow 100 per cent FDI in construction development projects (including townships, housing, built-up infrastructure, and real-estate broking services).In the top metros, especially Bengaluru, followed by Hyderabad and Pune, the key drivers will continue to be job creation a..

Next Story
Building Material

Organisations valuing gender diversity achieve higher profitability

The building materials industry is projected to grow by 8-12 per cent over the next five years. How is Aparna Enterprises positioning itself to leverage this momentum and solidify its market presence?The Indian construction and building materials industry is projected to witness significant expansion, with estimates suggesting an 8-12 per cent compound annual growth rate (CAGR) over the next five years. This growth is fuelled by rapid urbanisation, increased infrastructure investments and sustainability-focused policies. With India's real-estate market expected to reach $ 1 trillion by 2030, t..

Next Story
Real Estate

Dealing with Delays

Delays have beleaguered many a construction project in India, hampering the country from building to its ability and potential, and leading to additional costs incurred by the contractor. The reasons for delayIn India, delays mainly occur owing to obtaining statutory approvals, non-provisioning of right of way, utility diversion and approval of drawings and design. Delays are broadly classified based on responsibility and effect. Excusable delays arise from factors beyond the contractor’s control, such as force majeure events or employer-induced delays. These delays generally entitle th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?