IMPORTANT POINT
The court established that an arbitral award can be set aside if it contravenes the principles of natural justice and public policy, particularly when crucial evidence is introduced after the conclusion of hearings, compromising the integrity of the arbitration process.

JUDGMENT/ORDER

1. These appeals emanate from the judgment dtd. 5/4/2019, rendered by the Principal District Judge, Nagpur ("PDJ") in Civil Miscellaneous Application 688/2015, whereby the application preferred by the Government of India ("GOI") and the National Highways Authority of India ("NHAI"), under sec. 34 of the Arbitration and Conciliation Act, 1996 ("Act of 1996"), assailing the Award dtd. 20/5/2015, rendered by the Arbitrator in Arbitration Case 38/2011-12, is rejected, and further and additional relief is granted to the claimant Mr. Sarjuprasad Sangamalal Gupta ("Claimant") by modifying the Award.

2. The operative part of the judgment dtd. 5/4/2019 in Civil Miscellaneous Application 688/2015, reads thus:

<WXY>[1] The application is rejected with no order as to costs.

[2] The award is thus not set aside as prayed for by the applicants, but it is modified as under:

[i] The applicants are directed to pay the nonapplicant No. 3 the amount granted to him by the Arbitrator's award and in addition to it, 30% of the amount of the award as solatium as per the Sec. 23(2) of the Land Acquisition Act after deducting the 10% of the amount granted for the loss of easements right as per Sec. 3-G of the Highways Act.

[ii] The applicants shall pay amount calculated at the rate of 12% on the amount of compensation (market value) of the property acquired from the date of notification to the date of order of the competent authority for acquisition of land for National Highway as per Sec. 23(1-A) of the Land Acquisition Act.

[iii] The applicants shall pay interest at the rate of 9% on the amount payable under clauses 2[i] and 2[ii] from the date of notification under Sec. 3(d) of the Highways Act till the date of payment of enhanced compensation.

[iv] The amount already paid to the non- applicant No. 3 shall be deducted from the said payable amount.</WXY>

3. Arbitration Appeal 34/2019 is preferred by the GOI and the NHAI being aggrieved and dissatisfied with the judgment rendered by the learned PDJ in entirety while Arbitration Appeal 26/2019 is preferred by the claimant, who is dissatisfied with the judgment rendered by the learned PDJ to the limited extent the claimant is denied additional compensation @ 10% per annum and further to the extent the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, rehabilitation and Resettlement Act, 2013 ("Act of 2013") are not invoked.

4. Factual matrix:

4.1 Land admeasuring 0.28 H.R. which is part and portion of land assigned Survey 10/1, situated in village Panjari (Buz.), District Nagpur admeasuring 0.87 H.R. which was owned by the claimant is acquired under the provisions of the National Highways Act, 1956 ("NHAI Act") for widening, maintenance, management and operation of Sec. of NH-7 of the Nagpur - Hyderabad National Highway ("NH-7") from K.M. 14.585 to K.M. 18.93.

4.2 Respondent 2 - as the competent authority, rendered award dtd. 6/8/2011 awarding compensation of Rs.8, 14, 000.00 (Rupees Eight Lac Fourteen Thousand) to the claimant for the land acquired.

4.3 Dissatisfied with the quantum of compensation awarded by the competent authority, the claimant preferred an application under Sec. 3-G(5) of the NHAI Act for determination of compensation amount by the arbitrator (Arbitration Case 38/11-12).

4.4 Respondent 1 - arbitrator rendered award dtd. 20/5/2015, the operative part of which award reads thus:

<WXY>i) The application is partly allowed.

ii) The non-applicants are directed to pay the applicant an amount of Rs.85, 55, 800.00 as compensation for the acquired land of 2200 Sq.Mtrs., less the amount of Rs.8, 14, 000.00 already granted/received by the applicant.

iii) The non-applicants are also directed to pay to the applicant an additional amount of 10% of the total compensation amount for the loss of easement rights as per Sec. 3G(2) of the National Highways Act, 1956, if not already paid.

iv) The non-applicants are further directed to pay the applicant an interest @9% p.a.