Limited judicial interference with arbitral land compensation awards under Sec.34/37; enhancement for commercial use upheld; separate easementary compensation allowed in partial acquisition affecting adjacent business land.

JUDGMENT :

ARUN R. PEDNEKER, J.

1. In Arbitration Appeal No. 14/2016, filed under section 37 of the Arbitration and Conciliation Act 1996 (hereinafter referred to as ‘the Act’ for short) the appellant (competent authority) – National Highways Authority of India (NHAI) has challenged the common judgment and order dated 13.4.2016 in Civil M.A. No. 57/2015 and Civil M.A. No. 68/2015 filed under section 34 of the Act passed by the Principal District Judge, Jalgaon whereby the applications filed by the applicants are dismissed. In Arbitration Appeal No. 4/2024, the above common judgment and award is challenged by the original claimant/owner of the land.

2. Facts giving rise to filing of the appeals are summarised as under :-

NHAI has acquired the land of the claimant from Gat No. 213 situated at village Pimpri Sekam, Taluka Bhusawal, District Jalgaon for expansion of highway. Claimant was running a business of petrol pump on the adjacent and acquired land. Land from the frontal side of the above property admeasuring 2542 Sq. Mtrs. was acquired by the competent authority. The competent authority under section 3-G(1) of the National Highways Act, 1956 has determined the compensation of the acquired land by order No. LAQ/SR/8/2011. For acquired property of the claimant, competent authority has awarded Rs. 15,12,498/- as compensation at the rate of Rs.595/- per Sq. Mtr., Rs. 1,51,250/- for constructed area, Rs.1,50,510/- for water tank, Rs. 3722/- for forest trees and Rs. 1,51,249/- as easementary rights at the rate of 10% on the land value. Total compensation awarded to the claimant was Rs. 19,69,229/-.

3. Being aggrieved by the compensation, the claimant has filed an application under section 3-G(5) of the National Highways Act for determination of compensation before the Arbitrator and claimed enhanced compensation at the rate of 20,000/- per Sq. Mtr. for both constructed area and land. The Arbitrator by award dated 12.2.2015 and corrigendum order dated 17.3.2015 enhanced the compensation amount to Rs.1190/- per Sq. Mtr. against Rs.595/- granted by the competent authority. The Arbitrator further directed payment of amount at the rate of 10% of the compensation for land as statutory easementary rights on the enhanced compensation and Rs.1,10,000/- for loss of business and further directed interest on the enhanced compensation at the rate of 9% from the date of notification under section 3-D to the date of actual payment.

4. Being aggrieved by the award dated 12.2.2015 and corrigendum order dated 17.3.2015 of the Arbitrator under section 3G(5), the claimant as well as the NHAI has filed independent applications under section 34 of of the Arbitration and Conciliation Act challenging the said award before the District Court. By the common judgment and order dated 13.4.2016, the learned District Judge has dismissed both the applications under section 34 filed by the claimant as well as the NHAI against which the present appeals under section 37 of the Act are filed by the claimant as well as NHAI.

SUBMISSIONS OF NHAI

5. The learned counsel for NHAI has made following submissions :-

(a) There is absolutely no evidence on record before the arbitral tribunal to increase the price of the land from Rs. 595/- per Sq. Mtr. to Rs. 1190/- per Sq. Mtr. and the enhancement is without any reasons.

(b) While computing 10% loss of earning, it was necessary for the claimant to produce account statements of prior income and later income after section 3(A) notification. In the instant cas