MoRTH Constitutes Secondary Pre-Conciliation Committee for Low-Value Claims

In a significant step towards institutionalizing early-stage dispute resolution and reducing arbitration burden, the Ministry of Road Transport and Highways (MoRTH) has, by an Office Memorandum (OM) bearing reference no. RW/NH-36094/07/2025-S&R(A&CC) Comp. No. 257562 dated December 11, 2025, constituted a Secondary Pre-Conciliation Committee to facilitate the resolution of small-value disputes arising from road projects under its Roads Wing.

MoRTH had earlier, vide Office Memorandum dated December 28, 2023, constituted a Pre-Conciliation Committee under the chairmanship of the Director General (Road Development) & Special Secretary to resolve disputes between contracting agencies and the Authority in respect of road projects. This framework was intended to serve as a filter mechanism, enabling amicable settlement before disputes escalated into arbitration under concession agreements, Engineering Procurement and Construction (EPC) contracts, or other project documents. However, considering the growing volume of arbitration matters involving relatively small claim values, the Ministry has now decided to introduce an additional tier in the conciliation framework to ensure faster and more efficient handling of such disputes.

The newly constituted Secondary Pre-Conciliation Committee will examine all claims and disputes pertaining to a single project where the claim or dispute value does not exceed Rs. 5 crores. Disputes exceeding this threshold will continue to be referred to the existing Pre-Conciliation Committee constituted in 2023.

The Secondary Pre-Conciliation Committee will comprise:

• Additional Director General (Arbitration & Conciliation Cell) – Chairperson
• Concerned Zonal Head (ADG/Chief Engineer), MoRTH
• Advisor (Cost), MoRTH
• Joint Secretary (Toll), MoRTH

The Superintending Engineer (Arbitration & Conciliation Cell) will function as the Member Secretary to the Committee.

The recommendations of the Secondary Pre-Conciliation Committee will not attain finality on their own. These recommendations will require approval of the Hon’ble Minister of State (Road Transport & Highways) handling the Roads Wing, concurrence of the Integrated Finance Division (IFD), and approval of the Secretary (Road Transport & Highways).

The constitution of a Secondary Pre-Conciliation Committee marks a structured and tiered approach to dispute resolution within MoRTH. By segregating small-value disputes and subjecting them to a dedicated conciliation mechanism, the Ministry seeks to reduce the burden of arbitration proceedings, promote early and amicable settlement of disputes, achieve faster resolution timelines, and minimize legal and financial costs associated with prolonged dispute resolution. From a legal and contractual standpoint, the move reinforces the Government’s emphasis on institutional conciliation as a preferred pre-arbitration step, particularly in highway infrastructure projects where delays and cost overruns are often aggravated by unresolved disputes.