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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
| Table of Content |
|---|
| 1. appellant's challenge to arbitral award based on compensation determination. (Para 1 , 2 , 3 , 4) |
| 2. discrepancy in the valuation of land in the arbitral award. (Para 5 , 6) |
| 3. arguments regarding market value determination under the 2013 act. (Para 8 , 10 , 11 , 15) |
| 4. court's findings on the validity of the arbitral tribunal's award. (Para 12 , 14 , 16 , 17) |
| 5. dismissal of appeal with costs. (Para 18 , 19) |
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 n
The court affirmed an arbitral award on compensation for land acquisition, stating the determination conformed to relevant statutes, rejecting the appeal for lacking merit.
Market value for highway land compensation must follow statutory higher of stamp duty rates or average similar land sales using multiple deeds; single dissimilar sale deed use creates patent illegali....
Narrow scope of judicial interference under Sections 34/37 Arbitration Act in NHAI land compensation; no re-appreciation of evidence.
Narrow scope of interference under Sections 34/37 Arbitration Act in NHAI awards; no re-appreciation of evidence or modification of compensation.
Courts under Sections 34/37 cannot re-appreciate evidence in NHAI arbitration awards; interference limited to perversity or public policy.
Narrow scope of judicial interference under Sections 34/37 Arbitration Act in NHAI land compensation awards; no re-appreciation of evidence.
Arbitral awards in land acquisition omitting statutory solatium/interest and ignoring land potentiality are patently illegal and set aside under Arbitration Act public policy.
Arbitral award in land acquisition under NH Act vitiated by patent illegality for using obsolete guideline value instead of contemporaneous valuation.
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.
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