Tube Lines has lost a claim for £327m of funding from London Underground to cover upgrade work on the network.
The infrastructure operator had been seeking the money to cover extra costs it has incurred arising from delays to the upgrade of the Jubilee and Northern lines.
But an independent QC ruled that LU had not breached its contract and bore no responsibility for any increase in the costs, according to Transport for London.
Tube Lines was contracted to complete the upgrade of the Jubilee line by the end of December, but the project is now likely to be at least 10 months late.
LU is now discussing a programme of part and whole line weekend line closures up to October this year that will continue to cause disruption to travellers.
LU managing director Richard Parry said: "We welcome this ruling by the independent adjudicator, which makes it clear that Tube Lines is responsible, in full, for the costs it has incurred as a result of delays to the upgrade of the Jubilee and Northern lines. Also, that none of the allegations about LU bearing any blame for the cost increases have any foundation.
"This ruling proves that, contrary to Tube Lines' claims, London Underground is a capable, disciplined and responsible commercial partner.
"Tube Lines need to stop making further spurious claims for additional fare payers' and taxpayers' money, given the handsome returns already being earned by shareholders Bechtel and Ferrovial, and get on with the job in hand.
"That is to complete the delayed upgrade of the Jubilee line as soon as possible, learn lessons to minimise any further disruptive suspensions, line closures and delay on the upgrade of the Northern line, and to deliver their future works at the value for money price determined by the PPP arbiter."
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