Case No.
Arbitration Appeal No.70 of 2024
Bench
Justice Ranjan Sharma
Acts & Sections
Arbitration and Conciliation Act, 1996 §29A
Arbitration and Conciliation Act, 1996 §34
Arbitration and Conciliation Act, 1996 §37
National Highways Act, 1956 §3A(1)
National Highways Act, 1956 §3G(3)
National Highways Act, 1956 §3G(5)
Headnote
AI-drafted · Reviewed and approved
The National Highway Authority of India (NHAI) challenged an arbitral award dated 26.07.2017 passed by the Arbitrator-cum-Divisional Commissioner, Mandi, enhancing the market value of acquired land from Rs. 28,00,000/- per bigha to Rs. 35,00,000/- per bigha in proceedings under Section 3G(5) of the National Highways Act, 1956. NHAI had filed objections under Section 34 of the Arbitration and Conciliation Act, 1996 before the District Judge, Mandi, which were dismissed by judgment dated 04.12.2021, prompting the present appeal under Section 37 of the Act.
The primary contentions of NHAI included: (i) that the Award was non est as the Arbitrator had become functus officio, having not passed the Award within 12 months from entering upon reference as required by Section 29A of the Act; (ii) that the sale deed relied upon pertained to a small parcel of 3 biswas and could not be the basis for determining market value of large tracts of acquired land; (iii) that the Arbitrator wrongly considered an Inspection Report prepared by a retired officer; (iv) that no deduction of 50-60% was applied; and (v) that the Arbitrator failed to follow the procedure under Section 3G(7) of the National Highways Act.
The High Court dismissed the appeal, holding that Section 29A of the Arbitration and Conciliation Act, as inserted by the 2015 Amendment, was not applicable to arbitration proceedings commenced before the Amendment came into force on 23.10.2015, since the proceedings in the present case commenced on 30.10.2014. The Court upheld the concurrent findings of the Arbitrator and the District Judge, affirming the enhanced market value and finding no patent illegality or grounds for interference under the limited scope of Sections 34 and 37 of the Act.
Catchwords:
arbitration · land acquisition · National Highways Act · market value · enhancement of compensation · functus officio · Section 29A · Arbitration and Conciliation Act · amendment applicability · sale deed · deduction · Section 3G(5) · Section 3G(7) · Section 34 · Section 37 · NHAI · NH-21 · four laning
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