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HIGH COURT OF GUJARAT
SA,CJ,PT
SHREE CHITRAKUT DHAM TRUST – Appellant
Versus
NATIONAL HIGHWAY AUTHORITY OF INDIA – Respondent
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
A petitioner cannot claim interest on amounts not awarded by an arbitrator under an arbitral award, as it exceeds the decree.
The arbitral award on land compensation cannot be modified without participation of affected parties, ensuring rights to compensation are upheld as originally awarded.
The availability of alternate remedies under Section 36 of the Act of 1996 for execution and the pending challenge to the arbitral award under Section 34 were central to the court's decision.
The court directed NHAI to deposit 50% of the compensation amount with the Executing Court and make an endeavor to decide the pending proceedings within six months. The balance amount of compensation....
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.
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