A petitioner cannot claim interest on amounts not awarded by an arbitrator under an arbitral award, as it exceeds the decree.

ORDER :

SUNITA AGARWAL, C.J.

[1] This is a wholly misconceived petition seeking for award of interest on the excess amount of compensation determined under the arbitral award dated 28.06.2019. The challenge is to the order dated 27.12.2024 passed by the Collector affirming the order passed by the competent authority dated 31.08.2024 returning the application filed by the petitioner seeking for award of interest, on the ground of lack of jurisdiction.

[2] The prayers made in the writ petition are that the action of the respondent competent authority of deducting interest to the tune of Rs.20,56,981/- which got accrued on the excess amount of compensation declared under the arbitral award dated 28.06.2019 and remained under the fixed deposit under the order passed by the first appellate court is liable to be declared illegal. The contention is that the principal amount of Rs.7,14,04,370/- was deposited under the order of the first appellate court and on dismissal of the First Appeal filed by the NHAI vide judgment and order dated 20.02.2024, the said amount was transmitted to the trial court for onward disbursement to the petitioner after due verification vide order dated 28.03.2024. It is contended that a writ in the nature of mandamus be issued directing the respondent to forthwith pay the interest amount with penalty.

[3] Further prayer made in the writ petition is to calculate the interest amount on the excess amount of compensation from the date of taking possession of the land in question, i.e., with effect from 18.05.2018 until the date actual payment was made to the petitioner, i.e., 29.06.2024 and that further direction be issued to deposit the said amount together with the amount of Rs.20,56,981/- illegally deducted from the compensation amount deposited before this Court under the order passed by the first appellate court.

[4] Taking note of the prayers made in the writ petition, suffice it to record that the award with respect to the land in question was passed on 08.05.2018 by the competent authority in the second round of litigation where initial award dated 24.08.2016 was set aside. The award dated 08.05.2018 was further subjected to challenge by the petitioner before the arbitrator by invoking the provisions of Section 3G(5) of the National Highways Act, 1956 (hereinafter referred to as "the Act, 1956"). It is the case of the petitioner that the arbitrator had enhanced the compensation amount while passing the award dated 28.06.2019. The arbitral award was further challenged by the NHAI by filing an application under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act, 1996") which was dismissed on 23.06.2023. The NHAI has filed a First Appeal No.3641 of 2023 under Section 37 of the Act, 1996 challenging the arbitral award and the order of rejection of Section 34 application. It may be noted that on the presentation of the Appeal under Section 37, an interim order dated 18.08.2023 was passed whereby entire awarded amount, namely the excess compensation determined by the arbitrator under the arbitral award dated 28.06.2019 was directed to be deposited with the Registry of this Court.

[5] The First Appeal filed by the NHAI under Section 37 of the Act, 1996 had been dismissed vide judgment and order dated 20.02.2024. On a Note for speaking to minutes filed on behalf of petitioner herein, vide order dated 28.03.2024, it was directed that the amount deposited under the interim order dated 18.08.2023 shall be transmitted to the competent authority, Bhavnagar under the National Highways Act for making disbursement of the compensation amount determined by the arbitrator strictly in accordance with the provisions of Section 3H of the Act, 1956 after due verification and identification of the persons claiming to be interested in the amount so deposited.

[6] It seems that after passing of the said order, the Registry of this Court had transmitted the deposited amount of compensation under