In highway acquisitions under NH Act, small sale deeds usable for large tracts with deduction (no development charges needed); adjacent similar lands comparable; no 12% interest under LAA 23(1-A) per SC clarifications.

Jyotsna Rewal Dua, J.

Feeling aggrieved against the common award passed by the learned Arbitrator under Section 3G (5) of the National Highways Act, 1956 as also the common judgment passed by the learned District Judge, Bilaspur, deciding the applications moved by the appellant under Section 34 of the ARBITRATION AND CONCILIATION ACT (for short the Act), instant appeals under Section 37 of the Act have been preferred by the National Highway Authority of India.

Arising out of the common award passed by the learned Arbitrator and common judgment rendered by the learned District Judge as also involving the common questions, these appeals have been taken up together for decision.

2. Facts:-

2(i) These appeals arise out of acquisition of land by the appellant in Mohal Palthin, Tehsil Ghumarwin, District Bilaspur.

2(ii) Notification under Section 3A(1) of the National Highways Act, 1956 (for short the NH Act) was published in the official gazette on 21.04.2012 and 17.08.2012 for acquiring the subject land for four laning of NH-21 (between Bilaspur and Nerchowk Section)

2(iii) Notification under Section 3D(1) of the NH Act was issued in the official gazette on 15.12.2012, 08.01.2013 and 15.03.2013.

2(iv) Notification under Section 3G(3) of the NHAI Act inviting claims from interested persons was published in the newspapers on 14.03.2013 and 01.04.2013.

2(v) For the land covered by the above notifications the Competent Authority Land Acquisition (CALA) announced Award No. 17/2013-14 on 05.08.2013. In terms of the award, market value of the land was assessed at Rs. 18,00,000/- per bigha for all kind of lands irrespective of classification and nature in revenue village Palthin Hadbast No. 460 Tehsil Ghumarwin, District Bilaspur, H.P. In all, an area of 58 bighas, 18 biswa and 01 biswansee was acquired in the aforesaid revenue village.

2(vi) Seeking enhancement in the market value of the acquired lands, the land owners filed claim petitions under Section 3G (5) of the NH Act before the notified Arbitrator. Learned Arbitrator passed the award on 05.09.2017 allowing the claim petitions. Market value of the acquired land was enhanced to Rs.21,21,000/- per bigha. The land owners were also held entitled to solatium @30% on compensation amount of acquired property and 9% interest on enhanced compensation amount from the date of taking possession of land till actual deposit.

2(vii) Feeling aggrieved against the enhancement in the market value awarded by the learned Arbitrator, the appellant-NHAI took recourse to Section 34 of the Act and filed applications assailing the award passed in favour of the land owners before the District Judge Bilaspur. All these applications moved under Section 34 of the Act by NHAI were clubbed and vide common judgment passed on 04.09.2023, the same were dismissed. While dismissing the applications, learned District Judge also held that learned Arbitrator had inadvertently not awarded 12% interest per annum on the enhanced market value of the land from the date of the publication of notification under Section 3A till the award by the competent authority or till the date of taking possession of the land, whichever was earlier; This being a statutory interest payable under Section 23(1-A) of the LAND ACQUISITION ACT , was also required to be awarded to the land owners; Award of such interest would not alter or modify the arbitral award as it was only a statutory interest component liable to be paid in view of mandate in Union of India & Anr. Vs. Tarsem Singh & Ors., 2019 (9) SCC 304 Learned District Judge in addition to 30% solatium and 9% interest per annum awarded by the learned Arbitrator, accordingly also allowed 12% interest to the land owners under Section 23(1-A) of the LAND ACQUISITION ACT .

It is in the aforesaid background that NHAI has now taken recourse to Section 37 of the Act for assailing t