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2022 Supreme(SC) 746

SUPREME COURT OF INDIA
M.R. SHAH, B.V. NAGARATHNA, JJ.
National Highways Authority of India - Appellants
Versus
Sheetal Jaidev Vade & Ors. - Respondents
Civil Appeal No. 5256 of 2022
Decided on : 24-08-2022

Advocates appeared:
For the Appellant(s) : Ms. Neetica Sharma, Adv. M/s. M. V. Kini & Associates, AOR
For the Respondent(s): Mr. Shirish K. Deshpande, AOR Ms. Rucha Pravin Mandlik, Adv. Mr. Mohit Gautam, Adv. Mr. Siddharth Chapalgaonkar, Adv.

IMPORTANT POINT
High Court cannot assume jurisdiction of Executing Court while exercising jurisdiction under Article 226 of Constitution of India.

Headnote:

Constitution of India – Article 226 – Arbitration and Conciliation Act, 1996 – Section 34 – Acquisition of land – Execution of decree granting compensation – Apart from fact that award has been challenged by NHAI by initiating proceedings under Section 34 of Arbitration Act which are reported to be pending, High Court ought not to have entertained writ petition under Article 226 of Constitution of India seeking reliefs to execute award passed by Arbitral Tribunal/Court, when award passed by Arbitral Tribunal/Court is to be executed by initiating execution proceeding before concerned Executing Court – But, by passing impugned order/directions High Court has virtually converted itself into Executing Court – Once original writ petitioner was having an efficacious, alternative remedy to execute award passed by Arbitral Tribunal/Court, by initiating an appropriate execution proceeding before competent Executing Court, High Court ought to have relegated original writ petitioners to avail remedy instead of entertaining writ petition under Article 226 of Constitution of India which was filed to execute award passed by Arbitral Tribunal/Court – If High Courts convert itself to Executing Court and entertain writ petitions under Article 226 of Constitution of India to execute award passed by Arbitral Tribunal/Court, High Courts would be flooded with writ petitions to execute awards passed by Arbitrator/Arbitral Tribunal/Arbitral Court – NHAI shall deposit 50 per cent of compensation amount, as awarded by Arbitral Court, with Executing Court within a period of four weeks – Said amount shall be released to land owners unconditionally – District Court, before whom proceedings under Section34 of Arbitration Act are pending, shall make endeavour to decide such proceedings within a period of six months from next date of hearing before said court – Balance amount of compensation as per Award to be passed under Section 34 of Arbitration Act, shall be deposited by NHAI with Executing Court within four weeks after such determination – Said amount shall also be released by Executing Court in favour of land owners subject to rights and remedies available to parties in law. (Paras 6.2 and 7.1)

Facts of the case:

Land of the respondents herein-original land owners-original writ petitioners came to be acquired by NHAI under the provisions of the NHAI Act. Amount of compensation came to be enhanced by Arbitrator. The award passed by Arbitrator has been challenged by NHAI by availing statutory remedy under Section 34 of the Arbitration Act to the extent of enhanced amount. High Court has directed the appellant – NHAI to deposit the entire compensation amount as awarded by Arbitrator and thereafter permitting the original land owners – original writ petitioners to withdraw the amount.

Findings of Court:

Reliefs which have been sought by the private respondents herein original writ petitioners were in nature of execution of the award passed by Arbitral Tribunal/Court.

Result : Appeal disposed of with observations and directions.

JUDGMENT :

M.R. Shah, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 01.04.2022 passed by the High Court of Judicature of Bombay at Aurangabad in Writ Petition No.144 of 2021 by which in a writ petition filed by the respondents herein – original land owners, in exercise of powers under Article 226 of the Constitution of India, the High Court has directed the appellant – NHAI to deposit the entire compensation amount as awarded by the learned Arbitrator and thereafter permitting the original land owners – original writ petitioners to withdraw the amount as mentioned in paragraph 4, the NHAI has preferred the present appeal.

2. That the land of the respondents herein – original land owners – original writ petitioners came to be acquired by the NHAI under the provisions of the NHAI Act. That the amount of compensation came to be enhanced by the learned Arbitrator. The award passed by the learned Arbitrator has been challenged by the NHAI by availing the statutory remedy under Section 34 of the Arbitration Act to the extent of the enhanced amount. That as there was no stay of the award passed by the learned Arbitrator in a proceedings under Section 34 of the Arbitration Act, the respondent herein – original land owners instead of filing the execution petition to execute the award declared by the learned Arbitrator enhancing the amount of compensation, filed the writ petition before the High Court and prayed for a Writ of Mandamus and/or appropriate directions/orders directing the NHAI to deposit the amount with the Competent Authority, Land Acquisition and Sub-Divisional Officer in pursuance of the award dated 12.06.2018. By the impugned judgment and order the High Court has disposed of the said writ petition by directing the appellant – NHAI to deposit the entire amount along with interest with the Land Acquisition Authority and thereafter has directed the original writ petitioners – land owners to withdraw 50% of the amount along with interest on filing an affidavit of undertaking that if in the litigation journey, an adverse order is passed against them and they are found to have withdrawn excess amount, the said amount would be redeposited with the authority. So far as the remaining 50% of the amount with interest is concerned, the High Court has permitted the original writ petitioners – original land owners to withdraw 25% of the amount by tendering a solvent surety and the remaining 25% of the amount to be deposited with the competent authority with a liberty to invest the said amount in a fixed deposit account in any Nationalized Bank. Feeling aggrieved and dissatisfied with the impugned order passed by the High Court, the NHAI has preferred the present appeal.

3. Ms. Aishwarya Bhati, learned ASG appearing on behalf of the appellant – NHAI has vehemently submitted that the Hon’ble High Court has seriously erred in passing the impugned order in exercise of powers under Article 226 of the Constitution of India.

3.1 It is further submitted by Ms. Bhati, learned ASG that as the award passed by the learned Arbitrator was executable before the concerned Executing Court and therefore when the original writ petitioners had a statutory remedy available to execute the award by initiating the execution proceedings before the concerned Executing Court, the High Court ought not to have entertained the writ petitions under Article 226 of the Constitution of India to execute the award passed by the learned Arbitrator.

3.2 It is further submitted by Ms. Bhati, learned ASG that even otherwise the Hon’ble High Court has committed a serious error in permitting the writ petitioners – original land owners to withdraw 75% of the amount of compensation with interest, when the appellant had already availed the statutory remedy available to the NHAI to challenge the award passed by the learned Arbitrator, by way of appeal/application under Section 34 of the Arbitration Act.

3.3 Ms. Bhati, learned ASG has placed relianc

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