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MoRTH's January 2026 circular on arbitration above Rs 10 crore: what it means for your claim records

Published 8 October 2026. About 7 minutes to read.

In January 2026 the Ministry of Road Transport and Highways (MoRTH) changed the dispute resolution chapter used in national highway BOT (Toll), HAM and EPC contracts. The headline, reported widely, is that disputes valued at Rs 10 crore or more no longer go to arbitration.

This guide sets out what is confirmed, what is still unclear, and what contracts teams should do with their records now.

What was issued

  • MoRTH circular No. H-25011/02/2025-P&P dated 12 January 2026, addressed to NHAI, NHIDCL, the Border Roads Organisation, NHLML and MoRTH's own field units. It revises the dispute resolution chapter in the model concession agreements and contract documents for BOT (Toll), HAM and EPC projects.
  • It relies on the Ministry of Finance guidelines on arbitration and mediation in domestic public procurement dated 3 June 2024.
  • NHAI adopted the revised chapter through Policy Circular No. 11.82/2026 dated 19 January 2026.
  • On the circular's own terms, the revised chapter applies with immediate effect, except for ongoing arbitrations, which continue under the earlier provisions.

The circular is published on the MoRTH website. Our description of the annexed chapter below is drawn from the law firm commentary listed at the end of this page, which agrees on the main points.

The new route for disputes, as reported

  1. Amicable settlement first, whatever the value. Fox Mandal and TTA report a 30-day period from written notice of the dispute.
  2. Disputes below Rs 10 crore: institutional arbitration before SAROD or the India International Arbitration Centre.
  3. Disputes at or above Rs 10 crore: no arbitration. They go to conciliation under the Arbitration and Conciliation Act, 1996, which is to be replaced by mediation under the Mediation Act, 2023 once the relevant provisions are notified.
  4. Declaratory and non-monetary disputes: excluded from arbitration, with recourse to the civil courts.
  5. If conciliation fails, the remaining route is the courts.

For comparison, under the February 2019 MoRTH EPC model, unresolved disputes went to arbitration "irrespective of any claim value" (Clause 26.3), after amicable settlement and conciliation before NHAI's Conciliation Committees of Independent Experts (Clause 26.2).

What is still uncertain

Exactly Rs 10 crore

Commentators quote the chapter as excluding disputes "at or above" Rs 10 crore from arbitration, while Fox Mandal's summary of a later NHAI circular describes disputes "up to" Rs 10 crore going to arbitration. If a claim sits near the line, read the annexure itself.

How value is measured

The commentary we read does not settle whether the threshold applies per claim, per dispute notice or to all claims together. That affects how claims should be grouped and presented, so take advice before you split or combine claims.

Existing contracts

The January circular said it applied with immediate effect. Fox Mandal reports that a MoRTH letter of 28 January 2026 (No. H-25011/01/2025-P&P) and NHAI Policy Circular No. 11.83/2026 dated 12 February 2026 say that, for contracts signed or bids awarded before the change, the amended provisions apply only with the consent of the concessionaire or contractor. We could not read the text of either document, so confirm this with NHAI or your counsel.

Before that clarification, Cyril Amarchand Mangaldas, Sarthak Advocates and TTA had all questioned retrospective application. They pointed to the amendments clause in signed contracts (in the February 2019 EPC model, Clause 27.24 requires a written instrument signed by both parties), and TTA cited the Supreme Court's decision in Ssangyong Engineering & Construction Co. Ltd. v. NHAI, where an award upholding a mid-contract NHAI circular was set aside.

What counts as an "ongoing arbitration"

The term is not defined. Commentators suggest it may mean a dispute in which a notice under Section 21 of the Arbitration and Conciliation Act has been issued, or one in which the tribunal has been constituted. The difference matters for disputes that were at the pre-arbitration stage in January 2026.

Challenges

Business Today reported on 19 January 2026 that the National Highways Builders Federation had written to the Finance Ministry and MoRTH asking for reconsideration. We did not find a reported court ruling on the circular as of 8 October 2026. Check for later developments.

Why this changes how you keep records

In arbitration, a tribunal with construction experience could work through a large, untidy file over many hearings. Conciliation and court are different.

  • Conciliation works only if the other side is persuaded. A conciliator cannot impose a result, so your file has to convince the Authority's officers and their advisers. A clear chronology with sourced documents does more than a long narrative.
  • Courts are slower and stricter on proof. Electronic records, site photographs and email trails will need to be proved. Keep native files and their metadata, not only printouts, and ask counsel early how each category will be proved.
  • The forum now depends on value. Each claim head needs its own clear figure, with the method and the source data, so that the value of a dispute can be stated and defended.
  • Notice clauses still apply. The new chapter changes where disputes go, not the notice requirements. A claim that fails for want of notice fails in any forum. See our notice and time-bar checklist.

What to do now

  1. For each contract, find out which dispute chapter applies: the original one or the revised one, and whether you have been asked for, or have given, consent.
  2. List every live dispute and pending claim, with its value, its stage, and whether a Section 21 notice has been issued.
  3. Build a dated chronology for each claim, with the source document and page for every entry.
  4. Check each triggering event against the contract's notice clauses, so weak claims are known before conciliation begins.
  5. Value each claim head separately and keep the working.
  6. Preserve native emails, photographs with metadata, and signed hindrance and joint inspection records.
  7. Take legal advice on limitation and forum before choosing a route for any large claim.

General information, not legal advice. This page summarises public documents and commentary as of 8 October 2026. Circulars change, and their effect on your contract depends on its terms and your facts. Speak to a qualified lawyer before acting.

Get one claim file into shape

Claim Diagnostic prepares a dated chronology, a notice-compliance check and a draft claim register from a project's documents. We offer a free pilot on one past or closed matter.

See the sample report, read more on the home page, or ask for a free pilot through our contact form.

Sources

All accessed on 8 October 2026.

  1. Ministry of Road Transport and Highways, circular No. H-25011/02/2025-P&P dated 12 January 2026. https://morth.nic.in/sites/default/files/circulars_document/Circular%20dated%2012.01.2026.pdf
  2. Kapil Arora and Aditi Tambi, Cyril Amarchand Mangaldas, "The MoRTH Circular to end arbitration in disputes over 10 crores: unilateral change or contractual overreach?", 2 February 2026. https://disputeresolution.cyrilamarchandblogs.com/2026/02/the-morth-circular-to-end-arbitration-in-disputes-over-10-crores-unilateral-change-or-contractual-overreach/
  3. Fox Mandal, "MoRTH revises dispute resolution framework for BOT (Toll), HAM and EPC projects", 9 February 2026. https://foxmandal.in/News/morth-revises-dispute-resolution-framework-for-bot-toll-ham-and-epc-projects/
  4. Fox Mandal, "Clarification on applicability of modified dispute resolution provisions", March 2026. https://foxmandal.in/News/clarification-on-applicability-of-modified-dispute-resolution-provisions/
  5. Akshay Malhotra, Arunav Guha Roy and Aishik Majumder, TTA, "A Fork in the Road: Analysing NHAI's New Approach to Dispute Resolution in Highway Concessions", March 2026. https://tta.in/a-fork-in-the-road-analysing-nhais-new-approach-to-dispute-resolution-in-highway-concessions/
  6. Mani Gupta and Pranav Malhotra, Sarthak Advocates and Solicitors, "New Direction: MoRTH revises dispute resolution framework for the road sector", Indian Infrastructure, 6 March 2026. https://indianinfrastructure.com/2026/03/06/new-direction-morth-revises-dispute-resolution-framework-for-the-road-sector/
  7. Chetan Bhutani, "Highway builders evaluate legal route to address arbitration rule", Business Today, 19 January 2026. https://www.businesstoday.in/india/story/highway-builders-evaluate-legal-route-to-address-arbitration-rule-511472-2026-01-19
  8. Ministry of Road Transport and Highways, EPC Agreement for Construction of National Highway Works, February 2019, copy hosted by NHIDCL: Clauses 26.2, 26.3 and 27.24. https://www.nhidcl.com/sites/default/files/tenders/tendors/uploads/15bc8/EPC%20Agreement.pdf