Delhi High Court Rules Against Kurukshetra Expressway Award

The Delhi High Court upheld a July 2026 order partially setting aside an arbitration award previously granted to Kurukshetra Expressway Private Limited (KEPL).

KEPL is a 49.57% joint venture of Kalpataru Projects International Limited (KPIL).

Reader Takeaway: The court ruling blocks specific termination claims; the company is preparing a formal legal appeal to contest.

What just happened

On September 28, 2026, the Delhi High Court confirmed its previous decision from July 2026, which partially invalidated an arbitral award won by KEPL against the National Highways Authority of India (NHAI). The dispute relates to the Rohtak-Bawal road project, which saw its concession agreement terminated in October 2021 following toll collection issues during farmers' agitations. While the court upheld the award on several grounds, it specifically targeted and set aside claims involving termination payments and accrued interest.

Why this matters

For investors, the ruling represents a significant delay in the recovery of capital tied up in the Rohtak-Bawal project. Arbitration awards are typically seen as pathways to project closure and cash recovery. The court’s decision to remove the termination payment and interest components complicates the financial recovery outlook for the joint venture, directly impacting the potential returns expected from the project's liquidation.

Management Position

Management at KEPL, backed by external legal counsel, maintains a strong belief in the validity of its claims. The company has publicly announced its intention to file a petition to challenge this recent High Court order. KPIL management is continuing to monitor the legal process to protect its interests in the joint venture.

Risks to watch

Investors should monitor the timeline for the upcoming challenge petition. Further judicial delays in this long-gestation infrastructure project increase the uncertainty of fund recovery. Any material impact on the joint venture's balance sheet, if these claims remain set aside, is a key risk factor for KEPL stakeholders.

What to track next

Watch for official filings regarding the new challenge petition in the appellate court and any subsequent disclosures by Kalpataru Projects International regarding the financial status of the KEPL joint venture.