PNC Infratech has secured an arbitration award of Rs 1.47 billion, along with 9 per cent annual interest from March 13, 2019, in a contractual dispute with the Public Works Department (PWD), Government of Uttar Pradesh.
The dispute relates to an Engineering, Procurement and Construction (EPC) contract signed in June 2014 for the rehabilitation and upgradation of the 80-km Sonauli–Gorakhpur section of NH-29E under the National Highways Development Project (NHDP) Phase IV.
According to the company, the claims arose from delays by the authority in handing over encumbrance-free right of way, utility shifting and other pre-construction activities, resulting in project delays, additional costs and prolonged execution.
A three-member arbitral tribunal comprising retired Supreme Court judges upheld PNC Infratech's claims relating to prolongation costs, loss of earning capacity and profits, delayed site handover, escalation and other contractual entitlements, awarding Rs 1.47 billion with interest. The company said the award amount, including accrued interest, is currently estimated at around Rs 2.45 billion.
PNC Infratech was represented in the arbitration proceedings by S&A Law Offices, with the matter led by Manoj Kumar Singh, assisted by Nilava Bandyopadhyay, Senior Partner at the firm.