New Delhi: The Supreme Court has modified a Delhi High Court order in the dispute between the National Highways Authority of India (NHAI) and Vadodara Mumbai Expressway Package-08 Private Limited, the special purpose vehicle created by Roadway Solutions India Infra Ltd., directing NHAI to deposit 50% of the arbitral award amount instead of the entire sum within eight weeks.

A bench of Justices J.B. Pardiwala and K.V. Viswanathan passed the order while disposing of special leave petitions challenging the High Court’s November 19, 2025 direction that required NHAI to deposit the full arbitral award of over ₹1,019 crore, amounting to nearly ₹1,197 crore with interest as of February 9, 2026. The apex court ruled that only half of the total amount needs to be deposited with the Delhi High Court registry, after which the respondent company may withdraw the sum upon furnishing an irrevocable and unconditional bank guarantee from a nationalised bank.

The dispute arises from a 2021 concession agreement for construction of an eight-lane access-controlled stretch (Package-8) of the Vadodara–Mumbai Expressway in Gujarat under the Bharatmala Pariyojna on Hybrid Annuity Mode. NHAI issued termination notices citing failure of the concessionaire to achieve financial closure within the stipulated period, leading to arbitration.

In August 2025, the arbitral tribunal awarded about ₹532 crore for Phase-VIII and ₹486.24 crore for Phase-IX of the project to the concessionaire as adjusted equity. NHAI challenged the award under Section 34 of the Arbitration and Conciliation Act, seeking an unconditional stay, but the Delhi High Court refused and ordered deposit of the full amount.

Before the Supreme Court, NHAI argued that the award suffered from legal infirmities and that an unconditional stay could be granted in exceptional circumstances. The respondent company contended that the High Court order was legally sound and did not warrant interference.

Without commenting on the merits of the arbitral award, since the Section 34 challenge remains pending, the Supreme Court partly modified the High Court’s direction and asked it to proceed with the final hearing of the matter, already scheduled for July 14, 2026, as far as possible.

With these directions, the special leave petitions were disposed of. DeshGujarat