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2026 Supreme(Jhk) 419

IN THE HIGH COURT OF JHARKHAND AT RANCHI
DEEPAK ROSHAN, J.
National Highway Authority of India – Appellant
Versus
The State of Jharkhand through its Chief Secretary, Government of Jharkhand – Respondent 
W.P.(C). No. 3357 of 2022, W.P.(C). No. 1168 of 2023
Decided on : 29-01-2026

Advocates Appeared:
For the Appellant :M/s. Khushboo Kataruka, Shubham Kataruka, Tanya Budhia, Kumari Ruchika, Advocates
For the Respondent: Ms. Amrita Banerjee, AC to GP-I Mr. Rishabh Kaushal, AC to GP-II

Arbitrator under Section 3G(5) of National Highways Act lacks power to remand compensation disputes to competent authority; must determine amount independently.

Headnote:(A) National Highways Act, 1956 - Sections 3A, 3D, 3G(1), 3G(5) - Article 226 of Constitution of India - Land acquisition for highway widening projects - Dispute over compensation determined by competent authority - Aggrieved party invokes arbitration under Section 3G(5) - Arbitrator has no power to remand matter back to competent authority for re-determination of compensation - Must independently determine amount - Remand order held bad in law, without jurisdiction and set aside - Arbitration proceedings restored for decision on merits in accordance with law. (Paras 5, 6, 8, 9)

Facts of the case:
Notifications issued under Sections 3A and 3D for acquisition of land for 4-laning/widening of national highway. Competent authority fixed compensation under Section 3G(1). Dissatisfied claimants approached Arbitrator under Section 3G(5). Arbitrator remanded matters to competent authority instead of deciding compensation.

Findings of Court:
Orders remanding matters set aside as without jurisdiction. Arbitration cases restored to Arbitrator-cum-Additional Collector, directed to decide compensation amount on merits.

Issues: Whether Arbitrator under Section 3G(5) empowered to remand compensation dispute to competent authority for re-determination.

Ratio Decidendi: Section 3G(5) mandates Arbitrator to determine disputed compensation amount; no power to delegate or remit back to competent authority - Remand dehors statutory provision and without jurisdiction. (Paras 6, 8)

Result: Writ petitions allowed; matters restored to Arbitrator.

Table of Content
1. petition challenges arbitrator's remand orders. (Para 1 , 2)
2. land acquisitions for nh-33 widening detailed. (Para 3 , 4)
3. arbitrator exceeded powers by remanding case. (Para 5 , 6 , 7)
4. no power for arbitrator to remand under 3g(5). (Para 8)
5. remand set aside; cases restored to arbitrator. (Para 9 , 10 , 11)

JUDGMENT :

DEEPAK ROSHAN, J.

1. Heard the parties.

2. The petitioner in W.P.(C). No. 3357 of 2022 has prayed for quashing the order dated 08.09.2020 (Annexure-1), passed by the learned Arbitrator-cum-Additional Collector, Ramgarh in Arbitration Case No. 10/2013-14 and determine the compensation amount himself as envisaged in Section 3G(5) of the National Highway Act, 1956.

Similarly, in W.P.(C). No. 1168 of 2023, the petitioner has challenged the order dated 30.12.2022, passed in Arbitration Case No. 55 of 2018.

3. Briefly stated, in W.P.(C). No. 3357 of 2022, vide Section 3A and Section 3D Notifications, the Petitioner in order to carry out the project of 4-laning/ widening of National Highway-33, declared the acquisition of land situated at Mauza- Murpa, Khata No. 27, Plot Nos. 614 admeasuring an area of about 1.23 Acres. It is further to be noted that CALA under Section 3(G) (1) of the NH Act had earlier ascertained the total compensation towards the subject plots of raiyats, to the tune of Rs.18,53,378 (Rupees Eighteen Lakhs Fifty Three Thousand Three Hundred and Seventy Eight Only) for the land and not satisfied with the said compensation amount, the raiyats had filed a petition under Section 3G(5) of the NH Act before Respondent No.2/Ld. Arbitrator cum Additional Collector and the same was registered as Arbitration Case No. 10/2013-14.

4. In W.P.(C). No. 1168 of 2023, vide Section 3A and Section 3D Notifications, the Petitioner in order to carry out the project of 4- laning/ widening of National Highway-33, declared the acquisition of land situated at Mauza- Barhi, Khata No. 297, Plot Nos. 315 admeasuring an area of about 0.0630 Acres and the CALA under Section 3(G) (1) of the NH Act had earlier ascertained the total compensation towards the subject plots of raiyats, to the tune of Rs.16,73,330 (Rupees Sixteen Lakhs Seventy Three Thousand Three Hundred and Thirty Only) for the land and Rs. 1,23,582 (Rupees One Lakh Twenty Three Thousand Five Hundred and Eighty Two Only) for the structure and not satisfied with the said compensation amount, the raiyats had filed a petition under Section 3G(5) of the NH Act before Respondent No.2/Ld. Arbitrator cum Additional Collector and the same was registered as Arbitration Case No. 55/2018.

5. However, the Learned Arbitrator after hearing the parties, instead of making an award under Section 3G (5) of the said Act, remanded the matter to CALA/DLAO for re-determination of the compensation amount, which is bad in law and beyond the powers of the CALA/DLAO to re-determine the compensation amount.

6. The grievance of the petitioner is that as per Section 3G (5) of the said Act, if there is any dispute with regard to compensation between the parties, either of the parties can move before the Arbitrator who has to pass a specific order. However, in the instant cases, the Arbitrator after giving an observation that the compensatory amount is not proper, has delegated his power to CALA/DLAO to determine the compensation which is certainly dehors the provision of Section 3G(5) of the National Highway Act, 1956.

7. By these writ petitions under Article 226 of the Constitution of India, the petitioners have essentially asked for setting aside of the order dated 08.09.2020 [in W.P.(C). No. 3357 of 2022] and the order dated 30.12.2022 [in W.P.(C). No. 1168 of 2023], passed by learned Arbitrator-cum-Additional Collector, Ramgarh to the extent of remanding back the matter before the competent Authority for determination of amount/compensation.

8. The question raised in this petition, in that sense, is purely a question of law. The facts are indisputable. It is not in dispute that th

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