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2021 Supreme(Mad) 2485

IN THE HIGH COURT OF JUDICATURE AT MADRAS
ABDUL QUDDHOSE, J.
Dhandapani & Others – Appellants
Versus
The District Collector, Cuddalore & Others
O.P. Nos. 403, 404, 405, 406 & 407 of 2021
Decided on : 16-11-2021

Advocates:
Advocate Appeared:
For the Appellant :Adinarayana Rao, Advocate.
For the Respondents:Edwin Prabakar, Government Advocate.

Headnote:

Arbitration and Conciliation Act, 1996 - Section 34 - National Highways Act, 1956 - Land Acquisition - Arbitral Award - Compensation - Evidences - Petitioners have challenged common Arbitral Award on ground that Common Arbitral Award is a non-speaking award and learned Arbitrator has not considered evidence placed by respective petitioners with regard to market value of acquired lands - It is also case of petitioners that first respondent has not adhered to principles of natural justice and has not followed procedure contemplated under Arbitration and Conciliation Act, 1996 by giving equal opportunity to respective petitioners to put forward their respective defences and also by placing evidences in respect of their respective cases that they are entitled for higher compensation - Lands acquired by Land Acquisition Officer from petitioners are abutting National Highways and will fetch but, under impugned Arbitral Award, first respondent/Arbitrator has fixed a meagre amount of Rs.322/-per Sq.meter without any basis – Held, Court exercising power under Section 34 of Arbitration and Conciliation Act cannot modify an arbitral award, but can only set aside same or dismiss it - First respondent/Arbitrator has determined market value of the acquired lands at Rs.322/-per Sq.meter - Determination of compensation by the first respondent/Arbitrator shocks the conscience of this Court- Common Arbitral Award dated passed by the first respondent/Arbitrator is hereby set aside and these petitions are allowed as prayed for - Respective petitioners are permitted to initiate fresh Arbitration in respect of their acquired lands under National Highways Act, 1956 before first respondent/Arbitrator within a period of sixty days (60) days from date of receipt of a copy of this order - Petitions are allowed.

JUDGMENT :

(Prayer: Petitions filed under Section 34 of the Arbitration and Conciliation Act, 1996 to set aside the Arbitral Award passed by the first respondent in Na.Ka.No.3(Arbit)/13474/2019 dated 13.03.2020 enhancing the compensation from Rs.161/-per Sq.meter to Rs.322/-per Sq.meter as illegal and arbitrary and enhance the compensation to Rs.2,000/-per Sq.meter as claimed by the petitioners.)

1. These petitions have been filed by the respective land owners, where their lands have been acquired by the Land Acquisition Officer under National Highways Act, 1956 and the first respondent has passed a common Arbitral Award under the provisions of National Highways Act, 1956, determining the quantum of compensation payable to the respective petitioners for the lands acquired from them.

2. The common Arbitral Award dated 13.03.2020 passed by the first respondent is the subject matter of challenge in these petitions, filed under Section 34 of the Arbitration and Conciliation Act, 1996. The first respondent/Arbitrator has enhanced the compensation amount, as determined by the Land Acquisition Officer from Rs.161/-Sq.meter to Rs.322/-per Sq.meter.

3. The respective petitioners have challenged the common Arbitral Award on the ground that the Common Arbitral Award is a non-speaking award and the learned Arbitrator has not considered the evidence placed by the respective petitioners with regard to the market value of the acquired lands. It is also the case of the petitioners that the first respondent has not adhered to the principles of natural justice and has not followed the procedure contemplated under the Arbitration and Conciliation Act, 1996 by giving equal opportunity to the respective petitioners to put forward their respective defences and also by placing the evidences in respect of their respective cases that they are entitled for higher compensation. According to the respective petitioners, the lands acquired by the Land Acquisition Officer from the petitioners are abutting the National Highways and will fetch Rs.2,00,000/-per cent, but, under the impugned Arbitral Award, the first respondent/Arbitrator has fixed a meagre amount of Rs.322/-per Sq.meter without any basis. According to the petitioners, the Land Acquisition Officer has fixed the compensation for the acquired lands at Rs.161/-per Sq.meter and without any basis and arbitrarily, the first respondent/Arbitrator has doubled the compensation amount to Rs.322/-per Sq.meter.

4. It is the contention of the petitioners that the sale deeds of the adjoining properties, which disclose higher market value, were placed before the first respondent/Arbitrator and the same was not considered by the first respondent/Arbitrator under the impugned Arbitral Award. It is also the contention of the petitioners that the first respondent/Arbitrator, mechanically, without applying his mind, has fixed the market value for all the properties at the same rate of Rs.322/-per Sq.meter.

5. According to the petitioners, they were not given opportunity to place all the requisite evidence in support of their case by the first respondent/Arbitrator. According to the petitioners, without affording any opportunity to the respective petitioners to put forward their defence, the arbitral award has been passed against them arbitrarily and perversely and without any evidence. In the aforementioned grounds, the respective petitioners have sought for setting aside the arbitral award passed by the first respondent/Arbitrator under the National Highways Act, 1956.

6. Counter Statements have been filed by the first respondent in these petitions, denying the contentions of the respective petitioners. According to the first respondent/Arbitrator, the market value of the property for the purpose of payment of compensation to the respective petitioners were determined only after diving due consideration to the nature of the land acquired from the petitioners. According to the first respondent/Arbitrator, as per the sale

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