"IL&FS Engineering Services Initiates Arbitration Against NHAI for Road Project Dispute"

In a significant development, IL&FS Engineering Services has officially initiated arbitration proceedings against the National Highways Authority of India (NHAI), a state-run entity. This legal action is connected to a high-value project worth ₹1,200 crore involving the Four Lanning of the Patna-Gaya-Dhobi section.

In a formal statement released by the company and submitted to the stock exchange, IL&FS Engineering Services stated, "The Company has initiated arbitration by invoking relevant provisions of Arbitration and Conciliation Act read with EPC Contract dated 24.12.2014 against National Highways Authority of India, Ministry of Road Transport & Highways, Government of India to secure its contractual rights and obligations."

The core issue leading to arbitration revolves around NHAI's alleged failure to provide unencumbered land parcels for the successful execution of the project. This dispute has prompted IL&FS Engineering Services to invoke arbitration in pursuit of their contractual rights.

The company also mentioned that the Arbitral Tribunal has taken an active role in this matter. During the initial hearing, it directed the parties involved on the manner and operation for conducting the proceedings of the arbitration going forward. This signals a significant step in resolving the dispute through legal channels.

This development marks a crucial moment in the ongoing project and underscores the importance of addressing contractual issues to ensure the smooth progress of infrastructure initiatives. Further developments and outcomes from the arbitration will be closely monitored in the coming days.

HBL