Point of Law : Once the time-limit or extended time-limit for challenging the arbitral award expires, the period for enforcing the award under Section 36 of the Arbitration Act commences.

JUDGMENT :

Niral R. Mehta, J.

1. This appeal under Section 37(3) of the Arbitration and Conciliation Act, 1996 (for short, “the Act, 1996”) is at the instance of the National Highways Authority of India (original defendant No.2) and is directed against the judgment and order passed by the 10th Additional District Judge, Kachchh – Bhuj dated 22nd February 2021 in the Civil Miscellaneous Application No.103 of 2018 filed by the respondent No.1 herein (original applicant) under Section 34 of the Act, 1996, whereby the Court below partly allowed the application enhancing the compensation in favour of the original applicant.

2. We need not delve much into the facts giving rise to this litigation as the order passed by a Coordinate Bench of this Court, to which one of us (J. B. Pardiwala, J.) was a party, would make the picture clear. We quote the order as under:

“1. We have heard Mr. Maulik Nanavaty, the learned counsel appearing for the appellant – National Highway Authority of India and Mr. Mehul Sharad Shah, the learned counsel appearing for the claimant (original applicant).

2. This appeal under Section 37 (3) of the Arbitration and Conciliation Act, 1996 (for short “the Act, 1996”) is at the instance of the National Highway Authority of India and is directed against the judgment and order passed by the 10th Additional District Judge, Kachchh at Bhuj dated 22.02.2021 in the Civil Miscellaneous Application No.103 of 2018 filed by the claimant under Section 34 of the Act, 1996. The impugned final order (operative order) reads as under:-

“The application is partially allowed.

The Award & Order dated 12/07/2011 passed by Sub-Divisional Magistrate, Anjar and Award & Order dated 10/07/2018 passed in NH Award/Lavad Case No.89/2013, by the Arbitrator (Collector, Kachchh), are hereby quashed and set aside.

The petitioner is entitled to get compensation for the acquired land admeasuring 2375 Sqaure Meters of Survey No.1183/2 of Mouje & Taluka : Bhachau, District: Kachchh, at the rate of Rs.1,100/- (Rupees One thousand one hundred only) per Square Meters.

The amount already paid at the rate of Rs.150/- per Square Meters (i.e. total Rs.3,56,250/-) to the petitioner, shall be deducted from the above awarded amount.

The Respondent No.1 & 2 are ordered & directed to pay the amount of compensation as ordered above, within the period of one month, from the date of this Order. If the Respondent No.1 & 2 fails to pay within the time granted, then the said amount shall be paid with simple interest @ 9% per annum from the date of this Order till its actual revitalization to the Petitioner.

Yadi and alongwith copy of this Order be sent to Respondents for its immediate compliance.

The Record and Proceedings of NH Award/Lavad Case No.89/2013, be sent to the Arbitrator (Collector, Kachchh).

The parties shall bear their own costs.

3. The principal argument of Mr. Nanavaty, the learned counsel appearing for the appellant is that the court below in exercise of power under section 34 of the Act, 1996 could not have modified the award passed by the Arbitral Tribunal.

4. The plain reading of the impugned final order would indicate that the application filed by the original claimant under section 34 of the Act,1966 came to be partly allowed. The award passed by the Sub Divisional Magistrate, Anjar and the award passed by the Arbitrator (Collector, Kachchh) were ordered to be quashed and set aside. The Court below passed an order declaring that the claimant is entitled to receive compensation for the acquired land in question at the rate of 1,100 (Rs. One thousand one hundred only) per square meter.

5. The principal argument as canvassed on behalf of the appellant is based on a recent pronouncement of the Supreme Court in the case of The Project Director, National Highways No.45 E and 220 national Highways Authority of India V/s. M. Hakeem & Anr. reported in 2021 SCC onl