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2026 Supreme(Gau) 100

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Rajesh Mazumdar, J.
Ghanashyam Chetry, S/O Lt. Tika Ram Chetry – Petitioner
Versus
National Highway Authority Of India Rep. By The Chairman New Delhi And Ors. – Respondents
WP(C) 1068 of 2017
Decided On : 18-02-2026

Advocates Appeared:
For the Petitioner: Mr. R P Sarmah, Sr.Adv., Ms. M Borah
For the Respondent: Ms, R Borah, SC, NHAI, Mr. N Das

The arbitral award on land compensation cannot be modified without participation of affected parties, ensuring rights to compensation are upheld as originally awarded.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 2(1)

(C) and 34 - Arbitral award regarding land compensation - The petitioner contended non-payment of a residual portion of an arbitral award for land acquired for NH construction, originally set at Rs. 15 lacs per bigha, while paid Rs. 5 lacs per bigha. The court found that the petitioner's inclusion in the arbitral award had not been successfully challenged and the District Judge's modification was impermissible as the petitioner was not a party to the appeal proceedings. (Paras 8, 12, 14)

Facts of the case:
The petitioner, a landholder, sought payment of the amount due under the arbitral award dated 25.09.2008 after being compensated below the awarded rate due to modifications by a District Judge ruling.

Findings of Court:
The writ petition was allowed; the petitioner is entitled to compensation as per the arbitral award. The authorities were directed to process and pay the compensation accordingly.

Issues: The core issues included the validity of the District Judge's modification of the arbitral award and the entitlement of the petitioner to the initially awarded compensation amount.

Ratio Decidendi: The court determined that the arbitral award remained valid and unmodified concerning the petitioner as he was not included in the appeal, and thus, the District Judge's decision to alter the compensation lacked legal standing.

Result: Writ petition allowed.

Table of Content
1. award for compensation based on land acquisition. (Para 2 , 3 , 4)
2. petitioner's claim for higher compensation. (Para 5 , 6 , 7 , 8)
3. nhai and state arguments against compensation. (Para 9 , 10 , 11)
4. court's discernment on arbitral award's modification. (Para 12 , 13 , 14)
5. court orders compensation payment as per the original award. (Para 15)
6. procedural directives for compensation disbursement. (Para 16 , 17 , 18)

JUDGMENT :

Rajesh Mazumdar, J.

Heard Mr R P Sarmah, learned Senior Counsel, assisted by Ms M Borah, learned counsel appearing for the petitioner. Also heard Ms R Borah, learned Standing Counsel for the NHAI and Mr N Das, learned counsel appearing for the respondent Nos. 2, 3, 4 and 5.

2. The bone of contention in this writ petition is non-payment of a residual part of an arbitral award passed by the Commissioner, North Assam Division, Tezpur, an Arbitrator, NH-4 Lane of Nagaon and Morigaon District on the appeal petition filed by certain persons whose land has been acquired for construction of NH-4-Lane by the National Highway Authorities of India.

3. By the award dated 25.09.2008, in Case No. 4/2008, the learned Arbitrator has recorded as follows:-

“On the other hand, the construction of National Highway is being delayed. The appellants have applied for passing an order for interim award at fifty percent of the present market value. Considering the probable value of land per bigha @ 15 lakhs, fifty percent as interim award is hereby passed for payment. The total area of land being acquisitioned is 6 bighas, 1 katha and 18 lessas. Previously, the total area of land to be acquisitioned was shown as 5B- 0K-18 lessas. But during the fresh assessment the Circle Officer, Lanka Revenue Circle, found out that as per the and record, the actual total area of land to be acquisitioned is 6B-1K-18 lessas. This is as a result of inclusion of the land of Shri Ghana Shyam Chetri under P.P. No. 132 Dag No. 666. This was over-looked earlier. Therefore, the total amount of compensation on the land alone, without houses and Jerath will be Rs. 95,70,000.00 being commercial land. Fifty percent of interim award will come to Rs. 47,85,000.00. The NHAI shall deposit the amount of interim award to the Competent Authority and Deputy Commissioner, Nagaon. He will pay the amount to the appellants before 28/10/2008. This is to enable the appellants to built their houses outside the NH-4 land.

This order will not affect the final arbitration judgment in anyway.

This is done as per powers invested upon the Arbitration under Section 2 (1) (C) read with Section 31 of the Arbitration and Conciliation Act, 1996.”

3. The National Highway Authority of India, thereafter, preferred a Misc Case (J) No. 116 of 2009, in the Court of the learned District Judge, Assam, under the provisions of Section 34 of the Arbitration and Conciliation Act, 1996, for setting aside the arbitral award dated 25.09.2008, passed by the learned Arbitrator, as aforesaid. In the aforesaid Misc Case (J), the learned District Judge had come to the following conclusion:-

“Hence, the impugned order of the learned Arbitrator, the Commissioner, NAD, is modified to the extent that the OP Nos. 2 to 5 shall get the value of their land acquisitioned for construction of 4 land Highway of NH 54 at the value of Rs. 5 lakhs per bigha. The concerned authorities are directed to pay the value of the land as fixed above to the land owners as early as possible. The case, thus, stands disposed of. Send back the record of Case No. 4/08.”

4. The other land holders governed by the Arbitral Award had been paid a sum of Rs. 5 lacs per Bigha as compensation as directed by the order dated 19.04.2012, passed by the learned District Judge, Nagaon, Assam. The petitioner had also been paid the amount of compensation @ Rs. 5 lacs per Bigha, in accordance with the orders passed by the learned District Judge, Nagaon.

5. Mr R P Sarmah, learned Senior Counsel for the petitioner has submitted that the A

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