Back
IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
NUPUR BHATI, J.
National Highway Authority of India, Project Director, Project Implementation Unit, Palanpur (Gujarat) - Appellant
Versus
Meena, W/o. Gopal and Ors. – Respondents
S.B. Civil Misc. Appeal No. 131 Of 2022
Decided On : 14-08-2024
ARBITRATION - NATIONAL HIGHWAYS ACT, 1956; ARBITRATION AND CONCILIATION ACT, 1996 - Sections 3A, 3D, 3G(5), 3G(7)(c), 3G(7)(d), 34, 37 - The court discussed the provisions of the National Highways Act, 1956, particularly Sections 3A, 3D, and 3G, which govern the acquisition of land for national highways and the arbitration process for compensation determination. It emphasized that the arbitrator's role is limited to determining compensation and does not extend to remanding matters back to the Competent Authority. The court interpreted Section 34 of the Arbitration and Conciliation Act, 1996, as allowing limited grounds for setting aside an arbitral award, reinforcing the principle that the trial court's role is not appellate in nature. The court concluded that the appellant's failure to challenge earlier awards constituted a waiver of objections, leading to the dismissal of the appeal.
Fact of the Case:
The appellant challenged the dismissal of their application under Section 34 of the Arbitration and Conciliation Act, 1996, against an arbitral award concerning compensation for land acquired for highway construction under the National Highways Act, 1956. The case involved multiple remands by the arbitrator to the Competent Authority for re-evaluation of compensation, which the appellant argued exceeded the arbitrator's powers.
Finding of the Court:
The court found that the appellant had participated in all proceedings without raising timely objections to the arbitrator's remands and had waived their right to contest the awards. It upheld the trial court's decision, stating that the arbitrator acted within the scope of the law and that the appellant failed to demonstrate any misconduct or error in the proceedings.
Issues: Whether the arbitrator had the authority to remand the matter to the Competent Authority for re-determination of compensation and whether the appellant waived their right to object to the awards by not challenging them in a timely manner.
Ratio Decidendi: The court held that the arbitrator's role is confined to determining compensation and does not include remanding matters back to the Competent Authority. It emphasized that failure to object to earlier awards constitutes a waiver of rights under Section 4 of the Arbitration and Conciliation Act, 1996.
Final Decision: The appeal was dismissed, affirming the trial court's ruling that the arbitrator acted within their jurisdiction and that the appellant had waived their right to object to the awards.
JUDGMENT :
(Nupur Bhati, J.) :
1. The present misc. appeal has been filed by the appellant under Section 37 of the Arbitration and Conciliation Act, 1996 (‘Act of 1996’) assailing the award passed by the learned District Judge, Sirohi, dated 03.09.2021 (Annex.9), whereby the application filed by the appellant under Section 34 of the Act of 1996 has been dismissed. The appellant has also laid a challenge to the amended award passed by the Competent Authority vide order dated 13.05.2013 (Annex.5) and the consequential award dated 15.01.2014 (Annex.7).
2. Briefly stated, the facts of the case are that the appellant issued a Gazette Notification on 27.09.2004 under Section 3A of the National Highways Act, 1956 (‘NHAI Act’) for the purpose of constructing 4-lane highway on N.H.-14 from 246.000 km to 306.000 km and on N.H.-76 from 0.000 km to 21.400 km, which was published on 18.10.2004. Thereafter, objections were received by the Competent Authority and the same were dealt and dismissed vide order dated 04.04.2005 and subsequently, the declaration was issued by the Central Government in accordance with Section 3D of the Act of 1956 and thus, vide the publication made thereto, the said land vested with the Central Government, viz-a-viz the appellant.
3. Thereafter, the Competent Authority vide orders dated 02.08.2008 (Annex.1), determined the compensation to be given to respondents no. 1 and 2, from whom the land bearing Khasra No. 977/1 was acquired for the purpose of construction of the said national highway. Among the land falling under Khasra No.977/1, the land ad-measuring 0.0124 hectares was jointly owned by respondents no. 1 and 2 while the land ad-measuring 0.0088 hectares and 0.0033 hectares was owned by respondent no. 1 and 2 respectively, independently and the nature of the said land being Abadi Land. The Competent Authority determined Rs.1,29,081.21/-, Rs.8,51,229.72/-and Rs.53,20,237.26/-respectively for acquiring the said land for the purpose of construction of highway.
4. The said compensation determined by the Competent Authority was challenged by the respondents before the District Collector, Sirohi (Arbitrator) in accordance with Section 3G(5) of the Act of 1956 and subsequently, Arbitrator vide order dated 03.11.2009 (Annex.2), decided the application of respondents no. 1 and 2 and remanded the matter back to the respondent no. 3, the Competent Authority, directing it to take documents of respondents no. 1 and 2 on record, and pass a speaking order pursuant to Sections 3G(7)(c) and 3G(7)(d) of the Act of 1956. The Competent Authority reheard the matter and held, vide order dated 21.11.2011 (Annex.3) that the awarded amount was justified and legally correct and further observed that once an award is passed, it does not have the power to make amendments to the said award.
5. Another application was preferred by the respondent nos. 1 and 2, subsequent to the order dated 21.11.2011 (Annex.3) passed by the Competent Authority, before the Arbitrator, pursuant to Section 3G(5) of the NHAI Act and again the Arbitrator remanded back the matter to the Competent Authority vide order dated 23.07.2012 (Annex.4) while directing the Competent Authority to pass a speaking order after taking all the relevant documents into consideration. Pursuant to the order dated 23.07.2012 (Annex.4), the Competent Authority, vide order dated 13.05.2013 (Annex.5) stated that it does not have the power to modify the award and that, the same can only be done on the directions of the Arbitrator.
6. Thus, aggrieved of the said order dated 13.05.2013 (Annex.5), the appellant filed an application before the District Collector (Arbitrator) laying a challenge to the award dated 13.05.2013 (Annex.5) and again the matter was remanded back to the Competent Authority, vide order dated 28.11.2013 (Annex.6), directing them to take into consideration the income tax return, commercial tax returns and documents of income/expenditure of hotels and then pass the am
The arbitrator's authority under the National Highways Act is limited to determining compensation, and parties waive their right to object to awards if they do not raise timely challenges.
Court held that an arbitrator cannot remand matters back to competent authority after initial determination, affirming the arbitrary powers under Section 3G(5) of NHAI Act and the doctrine of acquies....
The Court can partially set aside an arbitral Award and has limited scope of interference under Section 34 of the Arbitration and Conciliation Act, 1996. The Court cannot modify an Award but can set ....
Point of Law : Once the time-limit or extended time-limit for challenging the arbitral award expires, the period for enforcing the award under Section 36 of the Arbitration Act commences.
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.
The court affirmed that under Section 34, a Civil Court lacks jurisdiction to reappraise evidence in arbitral awards and may only modify awards for clear errors, not on merits.
Under Section 34 of the Arbitration and Conciliation Act, 1996, a court cannot modify an arbitral award through reappraisal of evidence or merits; it is restricted to grounds explicitly stated in the....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
