IN THE HIGH COURT OF KARNATAKA AT BENGALURU
VIBHU BAKHRU, C.M.POONACHA
National Highways Authority of India Project Implementation Unit, Mangaluru – Appellant
Versus
N. Raviraj Shetty S/o Late B. Raghuram Shetty – Respondent
JUDGMENT :
VIBHU BAKHRU, C.J.
1. The appellant [NHAI] has filed the present appeal under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 [A&C Act] impugning an order dated 01.04.2025 [impugned order passed by the learned IV Additional District Judge and Commercial Court, D.K., Mangaluru [Commercial Court] in A.P No.375/2023 captioned, National Highways Authority of India vs. Shri N. Raviraj Shetty and others.
2. NHAI had preferred the said application under Section 34 of the A&C Act impugning an arbitral award dated 04.05.2023 [impugned award] passed by respondent No.2 [the Arbitral Tribunal] under Section 3G(5) of the National Highways Act, 1956 [the NH Act]. It is the NHAI's case that the impugned award is liable to be set aside inasmuch as it has not determined the compensation for the acquired land in accordance with the guidelines and the relevant statutes.
3. Land measuring 4452 sq. mtrs. in Survey No.129/8 in Thiruvalli Village, Mangalore Taluk [subject land] was acquired under the NH Act. The competent authority and the Special Land Acquisition Officer (respondent No.3) had determined the market value of the subject land at Rs.3,42,80,400/-. After accounting for




The court affirmed an arbitral award on compensation for land acquisition, stating the determination conformed to relevant statutes, rejecting the appeal for lacking merit.
The court ruled that compensation for land acquisition must reflect market value and consider hardships faced by landowners, as mandated by the National Highways Act and RFCTLARR Act.
Judicial intervention in arbitral awards is restricted, requiring adherence to statutory valuation methods ensuring fair compensation for land acquisition, as per applicable laws.
The court established that under statutory arbitration for land acquisition, the authority must ensure fair compensation based on proper assessment and documentation, highlighting a constitutional ob....
The court upheld the authority to modify arbitration awards in compensation cases if the original decision is perverse or against public policy, ensuring fair compensation is granted to landowners.
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