IMPORTANT POINTS:
• When the party making the application under S.34(1) of the Arbitration Act was not able to present his case before the arbitrator and if he furnishes proof for such inability, it constitutes a ground under S.34(2)(iii) of that Act to set aside the award.
• The court exercising the power under S.34 of the Arbitration Act cannot remit an award to the Arbitral Tribunal.
• The court cannot consider the application filed under S.34(1) of the Arbitration Act as a reference made under S.18 of the Land Acquisition Act, 1894 and direct payment of compensation at an enhanced rate- The award of the arbitrator can be set aside only on the grounds mentioned under S.34(2) of the Arbitration Act and not otherwise.
• The limited discretion available to the court under S.34(4) of the Arbitration Act can be exercised only upon a written application made in that behalf by a party to the arbitration proceedings and that the court cannot exercise this limited power of deferring the proceedings before it suo motu.

R. Narayana Pisharadi, J.

Land owned by the appellants was acquired under the National Highways Act, 1956 (hereinafter referred to as ‘the Highways Act’) for the purpose of widening of National Highway 47, from Walayar to Vadakkancherry. The competent authority fixed the amount of compensation for land payable to the appellants. The appellants re-coursed to arbitration proceedings as provided under the Highways Act. The arbitrator enhanced the amount of compensation payable to the appellants. The appellants challenged the award passed by the arbitrator by filing applications before the District Court under S.34(1) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Arbitration Act’). As per the impugned orders, the District Court dismissed the aforesaid applications. The owners of the land have come up in appeal.

2. We have heard learned counsel for the appellants and the learned Government Pleader and also the learned counsel for the first respondent. We have also perused the records.

3. Arbitration Appeal No.28 of 2016 relates to acquisition of wet land having an area of 0.0170 hectares. The Land Acquisition Officer granted compensation fixing the value of the land at Rs.28,249/- per Are. The arbitrator enhanced the compensation by re-fixing the value of the land at Rs.42,374/- per Are.

4. Arbitration Appeal No.30 of 2016 relates to acquisition of land having an extent of 0.1155 hectares which included dry as well as wet land. The Land Acquisition Officer granted compensation fixing the value of the wet land at Rs.28,249/- per Are and the dry land at Rs.49,400/- per Are. The arbitrator enhanced the compensation by re-fixing the value of the wet land at Rs.42,374/- per Are and the dry land at Rs.74,100/- per Are.

5. Arbitration Appeal No.33 of 2016 relates to acquisition of wet land having an extent of 0.0390 hectares. The Land Acquisition Officer granted compensation fixing the value of the land at Rs.28,249/- per Are. The arbitrator enhanced the compensation by refixing the value of the land at Rs.42,374/- per Are.

6. The National Highways Act, 1956 is enacted specifically for the purpose of acquisition of land for National Highways and for declaration of certain highways as National Highways. S.3A of the Highways Act gives power to the Central Government to acquire land for public purpose by complying with the procedure prescribed therein. Determination of the amount of compensation payable for the land acquired is dealt with under S.3G of the Highways Act. S.3G(1) provides that where any land is acquired, an amount which shall be determined by an order of the competent authority, shall be paid. S.3G(5) states that if the amount determined by the competent authority under sub-s.(1) is not acceptable to either of the parties, the amount shall, on an application by either of the parties, be determined by the arbitrator to be appointed by the Central Government. S.3G(6) provides that subject to the provisions of that Act, the provisions of the Arbitration Act shall apply to every arbitration under the Highways Act. Sub-s.(7) of S.3G of the Highways Act provides for the matters that shall be taken into account by the competent authority or the arbitrator while determining the amount under sub-s.(1) or sub-s.(5). The provisions contained in the Highways Act constitute a complete scheme for acquisition of land for the purpose of National highways.

7. Section 2(4) of the Arbitration Act provides that the provisions contained in Part I of that Act, except sub-s.(1) of S.40, S.41 and S.43, shall apply to every arbitration under any other enactment, as if the arbitration were pursuant to an arbitration agreement and as if that other enactment were an arbitration agreement. On a conjoint reading of sub-ss.(5) and (6) of S.3G of the Highways Act and S.2(4) of the Arbitration Act, it is clear that the provisions of Part I of the Arbitration Act will apply to every arbitration under the Highways Act. Of cou