IN THE HIGH COURT OF JUDICATURE AT PATNA
SANJEEV PRAKASH SHARMA, J.
Chandra Shekhar Pandey, Male Son of Ramkrit Pandey – Appellant
Versus
The Union of India – Respondent
Civil Writ Jurisdiction Case No.424 of 2022
Decided on : 31-03-2022
NHAI Act - Arbitration Award - Sections 3G(5), 3G(6), 3G(7), Arbitration and Conciliation Act, 1996 - Summary: The court discussed the provisions of the NHAI Act and the Arbitration and Conciliation Act, 1996, and their applicability to the case. It highlighted the importance of natural justice and the right to challenge an award under Section 34. The court also referenced relevant case law to support its decision.
Fact of the Case:
The petitioners challenged an order passed by the Arbitrator-cum-Divisional Commissioner, Patna, under the NHAI Act, 1956, regarding land acquisition. They argued that the order violated principles of natural justice as they were not given an opportunity of hearing.
Finding of the Court:
The court found that the order dated 08.09.2020 passed by the Arbitrator-cum-Divisional Commissioner, Patna, was an independent award and could be challenged under Section 34 of the Arbitration and Conciliation Act, 1996.
Issues: Violation of principles of natural justice, applicability of Section 34 of the Arbitration and Conciliation Act, 1996.
Ratio Decidendi: The court held that the order of the Divisional Commissioner as an Arbitrator should be set aside, and all affected claimants should be added as parties to the proceedings to ensure natural justice. It also emphasized the importance of statutory remedies and the limitations of judicial review under Article 226 of the Constitution.
Final Decision: The writ petition was dismissed, but the court directed that the remedy available under Section 34 should be examined on merits by the concerned District Judge, and parties could further take recourse to Section 37 of the Act.
JUDGMENT :
1. Heard the parties.
2. The case is being taken up from defect side.
3. Learned counsel for the petitioners is directed to submit the original petition along with attested affidavits and also remove all the defects pointed out by the Registry within two weeks from today.
4. The petitioners have preferred this writ petition assailing the order dated 08.09.2020 passed by the Arbitrator-cum-Divisional Commissioner, Patna. Learned counsel for the petitioners submits that after final award was passed by the Arbitrator no objection in this said regard was filed by the National Highway Authority of India.
5. However, without impleading the petitioners as party, it proceeded to move a fresh application before the Arbitrator-cum-Divisional Commissioner, Patna against the order of the land acquisition officer dated 31.10.2016. In the proceedings taken up by the concerned Arbitrator-cum-Divisional Commissioner, Patna, the Arbitrator has proceeded to direct the land acquisition officer to redraw his award under the land acquisition by taking into consideration the different lands as specified by the six members committee report dated 05.10.2019, which has resulted in taking away the substantive right as created in favour of the petitioners earlier.
6. Learned counsel submits that since the petitioners were not given an opportunity of hearing. The award passed by the Arbitrator-cum-Divisional Commissioner, Patna deserve to be declared void ab initio as there is a complete violation of principles of natural justice.
7. I have considered the submissions. Award passed by the Arbitrator-cum-Divisional Commissioner, Patna under the NHAI Act, 1956 as under the powers given to it under Sections 3G (5) (6) and (7). Thus, any award would be governed by the provisions of the Arbitration and Conciliation Act, 1996. The Arbitration and Conciliation Act, 1996 provides that the award passed therein can be challenged and prayer to set aside the same may be made by moving an application under Section 34 before the concerned learned District Judge.
8. Learned counsel submits that the provisions of Section 34 would have no application as the petitioners is not challenging the original arbitration award and is only challenging the subsequent order passed on 08.09.2020.
9. I have considered the submission, keeping in view of the provisions of Section 34 in mind, this Court finds that the order dated 08.09.2020 passed by the Arbitrator-cum-Divisional Commissioner, Patna is an award in itself Independent and earlier award passed by it, In view thereof, the petitioners, would have the remedy under Section 34 available to it.
10. Learned counsel during the course of argument has placed reliance of one judgment passed by this Court in the case of Ram Bachan Singh Yadav @ Ram Bachan Singh & Ors. Vs. The Union of India & Ors. in C.W.J.C. No. 22211 of 2013, decided on 10.03.2014, wherein the co-ordinate Bench has taken the view, which is as under:
“There are at least two well-recognized exceptions to the doctrine with reg
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The main legal point established in the judgment is the importance of natural justice, the right to challenge an award under Section 34 of the Arbitration and Conciliation Act, 1996, and the limitati....
The main legal point established in the judgment is the limitation on the authority's power to remit back the matter under Section 3(G)(5) of the National Highways Act, 1956, and the restrictions on ....
The High Court cannot entertain writ petitions challenging arbitral awards after the statutory limitation period has expired, reinforcing the need for adherence to legislative intent in arbitration m....
The court clarified that under Section 34 of the Arbitration Act, the scope of review is limited to setting aside awards for patent illegality or public policy violations, not for modification.
The court upheld the discretion under Section 34(4) of the Arbitration and Conciliation Act to remit matters to the Arbitrator for addressing gaps in the award, particularly regarding solatium.
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