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2023 Supreme(HP) 494

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
RANJAN SHARMA, J.
Prabhat Thakur and Others - Petitioners
Versus
Collector Land Acquisition and Others - Respondents
Arbitration Case No. 748 of 2023 a/w Arbitration Case No. 749 of 2023
Decided On : 13-10-2023

Advocates Appeared:
For the Petitioners: Mr. Maan Singh.
For the Respondents:Ms. Shreya Chauhan and Ms. Sneh Bhimta, Mr. I.N. Mehta, Senior Additional Advocate General with Mr. J.S. Guleria & Mr. Rohit Sharma, Deputy Advocates General,

Headnote:

Arbitration Proceedings - National Highways Act, 1956 - Section 29A(1), 29A(3), 29A(5), 32 - The court allowed the petitions and directed the Arbitrator to conclude the arbitral proceedings and make an award on or before 31.03.2024 positively. The orders treating the mandate of the Arbitrator to have terminated were quashed and set-aside.

Fact of the Case:

The petitioners' land was acquired for widening/four laning of National Highway-21. They filed Reference Petitions under Section 3G(5) of the National Highways Act before the Arbitrator-cum-Divisional Commissioner Mandi Division. The Arbitrator passed an order stating that the mandate to decide the cases had expired and the case files were kept in abeyance, prompting the petitioners to seek extension in arbitral proceedings from the Court.

Finding of the Court:

The Court found that the non-completion of the arbitral proceedings within the specified period was due to administrative reasons or on account of COVID and post-COVID effects. The Court held that the litigants-petitioners cannot be put to a disadvantageous position due to the inaction of the respondent-NHAI or the non-conclusion of arbitral proceedings by the Arbitrator due to administrative reasons or on account of COVID and other reasons beyond the control of the Arbitrator.

Issues: The issues involved were whether the Court can extend time for concluding the arbitral proceedings beyond the specified period, and whether the delay attributed to the Arbitrator or any of the parties to arbitral proceedings will fall within the ambit of 'sufficient cause' in Section 29A(5) of the Act.

Ratio Decidendi: The Court analyzed the provisions of Section 29A(1), 29A(3), 29A(5), and 32 of the Act, and held that the Court is empowered to extend the time to conclude the arbitral proceedings, even after the expiry of the specified period. The Court also found that the delay in completion of arbitral proceedings due to the Arbitrator or the respondent-NHAI constituted 'sufficient cause' in the instant cases.

Final Decision: The Court allowed the petitions, directed the Arbitrator to conclude the arbitral proceedings and make an award on or before 31.03.2024, and quashed the orders treating the mandate of the Arbitrator to have terminated.

JUDGMENT :

Ranjan Sharma, J.

Since the issue involved and relief sought in these petitions is similar and, therefore, they were taken up together for arguments and are being disposed of by a common judgment.

2. The petitioners in Arbitration Case No.748 of 2023 have filed the instant petition with the following prayer:-

“It is, therefore, respectfully prayed that in view of the facts stated above the application may kindly be allowed and the time limit for completing the Arbitration proceedings in Arbitration Reference Case No.30 of 2018 titled as Prabhat Thakur and another v. Collector Land Acquisition, National Highways Authority of India pending before the learned Arbitrator under National Highways Authority of India-cum-Divisional Commissioner, Mandi, may kindly be extended for a further period of six months or any other orders or directions which this Ld. Court may deem fit be passed in the interest of justice.”

3. In Arbitration Case No.749 of 2023, petitioner, has filed the instant petition with the following prayer:-

“It is, therefore, respectfully prayed that in view of the facts stated above the application may kindly be allowed and the time limit for completing the Arbitration proceedings in Arbitration Reference Case No.64 of 2018 titled as Ram Chand v. Land Acquisition Collector, National Highways Authority of India pending before the learned Arbitrator under National Highways Authority of India-cum-Divisional Commissioner, Mandi, may kindly be extended for a further period of six months or any other orders or directions which this Ld. Court may deem fit be passed in the interest of justice.”

4. Facts in brief are that pursuant to Notification issued by the Central Government on 22.03.2012 for acquisition of land for National Highway under National Highways Act, 1956, acquisition proceedings were initiated.

5. Case of the petitioners in Arbitration Case No.748 of 2023 is that his land/building situated in Khasra No(s).1362/1 and 137/1 along with fruit bearing trees existing thereupon, situate in Muhal Simsa (Ranghari), Tehsil Manali, District Kullu, Himachal Pradesh, was acquired vide Award No.50, dated 30.03.2017 passed by Respondent No.1 (Collector Land Acquisition, National Highways Authority of India) for widening/four laning, maintenance, management and operation of National Highway-21 on the stretch of land from New Chowk to Manali. Likewise, the land of the petitioner-Ram Chand in Arbitration Case No.749 of 2023 in Khasra Nos.635, 636 situate in Mohal Bashing, Phati Banogi, Kothi Sari, Tehsil and District Kullu, Himachal Pradesh, was acquired vide Award Nos.3, dated 09.05.2016 and supplementary Award No. 3/1 dated 30.09.2016, passed by respondent No.1 (Collector Land Acquisition, National Highways Authority of India) for widening/four laning, maintenance, management and operation of National Highway-21 on the stretch of land from New Chowk to Manali.

6. Feeling aggrieved against the respective award(s), the petitioners filed Reference Petition(s) under Section 3G (5) of the National Highways Act before the Arbitrator-cum-Divisional Commissioner Mandi Division, who started the arbitral proceedings in Arbitration Reference Case No. 30 of 2018 titled as Prabhat Thakur & another Versus Collector Land Acquisition, National Highways Authority of India and in Arbitration Reference Case No.64 of 2018, titled as Ram Chand Versus Land Acquisition Collector, National Highways Authority of India, in which the petitioners and the respondent-National Highways Authority of India participated without any objection to the continuation of these proceedings.

7. Surprisingly, the Arbitrator-cum-Divisional Commissioner passed an order on 08.02.2023 and 07.02.2023 that the mandate of the Arbitrator to decide these cases has already expired and the case files were kept in abeyance, so as to enable the parties to seek extension in arbitral proceedings from the Competent Court of Law.

8. We have considered the matter in entirety and it

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