FACTUAL ASPECTS IN CIVIL APPEAL NO. 4702 OF 2023

1. The appellant- National Highways Authority of India Ltd. has been constituted under Section 3 of the National Highways Authority of India Act, 1988. On 2nd June 2004, the appellant awarded a contract to the respondent for the work of the Allahabad Bypass Project, which involved the construction of a road from km 158 to km 198 (except a bridge on the river). The total cost of the project was Rs.4,46,99,12,839/-. A dispute between the parties was referred to the Dispute Resolution Board. The Board gave its recommendations. Ultimately, the dispute was referred to an Arbitral Tribunal of three arbitrators. There were three claims referred to arbitration, which are as follows:

- Claim no.1 - Reimbursement of additional expenditure incurred due to an increase in the rates of royalty and associated sales tax on soil, sand and crushed stone aggregates;

- Claim no.2 - Non-payment for executed work of embankment with soil/pond ash for the initial 150 mm depth stripped in accordance with the requirements of the contract and

- Claim no.3 - Reimbursement of additional costs incurred due to an increase in the forest transit fee rates.

2. The Arbitra