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IN THE HIGH COURT OF KERALA AT ERNAKULAM
Nitin Jamdar, C.J., S.Manu, J.
National Highways Authority – Appellant
Versus
Reji Philip, S/o. Peter Philip – Respondent
WA NO. 1569 OF 2016, WA NO. 1574 OF 2016, WA NO. 1576 OF 2016
Decided on : 10-10-2024
(A) National Highways Act, 1956 - Sections 3-A, 3-C, 3-D, 3-G, and 3-H - Arbitration and Conciliation Act, 1996 - Section 34 - Challenge to arbitral awards - The learned Single Judge set aside the awards of the Arbitrator for inadequacy of compensation, despite statutory remedies available - The appeals contend that the writ petitions were not maintainable as the statutory remedy was closed. (Paras 9, 12, 21)
(B) Jurisdiction of High Court - The High Court cannot interfere with arbitral awards under Articles 226 and 227 of the Constitution of India when statutory remedies under Section 34 of the Arbitration Act are available - The legislative intent is to minimize judicial intervention in arbitral matters. (Paras 17, 19)
Facts of the case:
The NHAI challenged the learned Single Judge's judgment setting aside the Arbitrator's awards concerning land acquisition compensation. The Original Petitioners claimed inadequacy of compensation awarded for their acquired lands. (Paras 1-8)
Findings of Court:
The Court found that the learned Single Judge's interference with the arbitral awards was impermissible and that the petitioners had failed to pursue their statutory remedy in time. (Paras 20, 21)
Issues: Whether the High Court can entertain a writ petition challenging an arbitral award after the limitation period under Section 34 of the Arbitration Act has expired. (Paras 16, 19)
Ratio Decidendi: The Court ruled that the learned Single Judge erred in entertaining the writ petitions despite the closure of statutory remedies, emphasizing that the legislative intent is to ensure speedy resolution of arbitral disputes. (Paras 18, 20)
Result: Appeals allowed.
JUDGMENT :
Nitin Jamdar, C. J.
By these appeals, the Appellant – National Highways Authority of India (NHAI) has challenged the common judgment dated 17 May 2016 delivered by the learned Single Judge in W.P.(C) Nos. 29437 & 31306 of 2011 and W.P.(C) No. 27156 of 2012, setting aside the awards passed by the Arbitrator under the provisions of the National Highways Act, 1956 (Act 48 of 1956).
2. W.A. No. 1569 of 2016 is against the judgment delivered in W.P. (C) No. 29437 of 2011, W.A. No. 1574 of 2016 is against the judgment delivered in W.P.(C) No. 31306 of 2011 and W.A. No. 1576 of 2016 is against the judgment delivered in W.P(C) No. 27156 of 2012. The said writ petitions were filed by Respondent No.1/Original Petitioners.
3. The lands owned by the Original Petitioners situated at Vadakkancherry Village in Alathur Taluk were acquired by the Deputy Collector (Competent Authority), Land Acquisition for National Highways, Palakkad – Respondent No.3 in all the appeals, upon the requisition made by the NHAI under the provisions of the Act 48 of 1956 and awards were passed. Aggrieved by the inadequacy of the compensation awarded, the Writ Petitioners have filed applications before the Respondent No.2 – District Collector, Palakkad, (Arbitrator for Land Acquisition, National Highway), who found that the basis lands relied on and the acquired lands were not identical.
4. National Highways Act, 1956 is an Act to provide for the declaration of certain highways to be national highways and for matters connected therewith. Under Section 3-A of the Act, where the Central Government is satisfied that any land is required for the purpose of national highway, notification in the Official Gazette has to be issued. Therefore, under Section 3-C of the Act, any person interested in the land can submit objections in writing to the Competent Authority.
5. Section 3-D of Act 48 of 1956 provides for a declaration of acquisition. Thereafter, under Section 3-H of the Act, procedure for deposit and payment of amount is provided. Under Section 3-G of the Act, the methodology for determination of the amount payable as compensation is provided for. Under sub-section (5) of Section 3-G, if the amount determined by the Competent Authority under sub-sections (1) and (2) is not acceptable to the parties, then upon application by the parties, the same has to be determined by the Arbitrator to be appointed by the Central Government. Sub-section (6) of Section 3-G provides that the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to every arbitration under the Act 48 of 1956.
6. The land of the Original Petitioner in W.P.(C) No. 29437 of 2011 admeasuring 0.1593 hectares out of 0.3682 hectares in Sy. No. 7/3 of No.3 – the Deputy Collector on requisition of the NHAI under the provisions of the Act 48 of 1956 and the Arbitrator passed an award granting an amount of Rs.8,55,230/- to the Original Petitioner.
7. The land of the Original Petitioner in W.P.(C) No. 31306 of 2011 admeasuring 0.2896 hectares out of 0.7268 hectares in Sy. Nos. 7/1, 7/3, 7/7 & 7/2 of Block No.45 of Vadakkanchery Village was acquired by the Deputy Collector on requisition of the NHAI under the provisions of the Act 48 of 1956 and the Arbitrator passed an award granting an amount of Rs.16,53,720/- to the Original Petitioner.
8. The land of the Original Petitioner in W.P.(C) No. 27156 of 2012 admeasuring 0.1559 hectares in Sy. Nos. 258/1 and 491/2 & 6 of Block No.44 of Vadakkanchery Village was acquired by the Deputy Collector on requisition of the NHAI under the provisions of the Act 48 of 1956 and the Arbitrator passed an award granting an amount of Rs.13,88,715/- to the Original Petitioner.
9. The Original Petitioners filed the writ petitions challenging the categorisation of the lands and inadequacy of the compensation. The learned Single Judge in the impugned judgment entered into the merits of the amounts granted under the awards and found that the amounts awarded by
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