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IN THE HIGH COURT OF ORISSA AT CUTTACK
SANJEEB K. PANIGRAHI, J.
Rojesh Nayak – Appellant
Versus
The C.G.M. (Tech) & Regional Officer National Highway Authority of India, Regional Officer, Odisha & Ors. – Respondents
ARBA No.15 of 2025
Decided On : 12-12-2025
| Table of Content |
|---|
| 1. background and details of land acquisition. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10) |
| 2. arguments supporting inclusion of all structure components. (Para 12 , 13 , 14) |
| 3. counterarguments defending exclusions based on statutory interpretation. (Para 15 , 16 , 17) |
| 4. limits of judicial intervention in arbitration. (Para 20 , 21 , 22 , 23 , 24) |
| 5. statutory scheme for compensation and its application. (Para 25 , 26 , 27 , 28 , 29 , 30) |
| 6. assessment of structure value under the national highways act. (Para 31 , 32 , 33 , 34 , 35) |
| 7. clarification on authority's role in valuations. (Para 36 , 37 , 38) |
| 8. validity of statutory interpretations and limits on appeals. (Para 39 , 40 , 41) |
| 9. necessity of adhering to statutory limits in compensation. (Para 42 , 43 , 44) |
| 10. final judgment confirming previous decisions. (Para 46 , 47 , 48) |
JUDGMENT :
Sanjeeb K. Panigrahi, J.
1. This Appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “A&C Act”) is preferred by the Appellant challenging the Order dated 5.8.2024, in Arbitration Misc. Case No. 2 of 2023, passed by the Learned District Judge, Bhadrak, in an Application filed under Section 34 of the Act, which was filed against the Arbitral Award u/s 3G of the National Highways Act, 1956, dated 7.10.2022, in Misc. Case No.2 of2012,passed by the Arbitrator-cum-Collector & District Magistrate, Bhadrak, wherein the learned District Judge, was also pleased to reject the Application preferred by the present Appellant for enhancement of the compensation amount.
I. FACTUAL MATRIX OF THE CASE:
2. The dispute originates from the acquisition of the appellant’s land, Plot No.1551 (part), measuring Ac.0.08.200 out of a total Ac.0.50, classified as Gharabari under Khata No.168 of Mouza Dakhinbad, Bhandaripokhari Tahasil, District Bhadrak. The land was notified for acquisition for widening of National Highway-16 under Section 3(A) of the National Highways Act, 1956, by S.O. 1013(E) dated 22.2.2019, followed by a declaration under Section 3(D) via S.O. 792(E) on 19.2.2020.
3. Two permanent structures stood on the acquired land—one RCC-roofed building and another asbestos-roofed building. These were assessed under Section 29 of the RFCTLAR&R Act, 2013 by the Assistant Engineer, R&B Division, Bhadrak on 17.1.2022.
4. Following the preparation of the estimate, the Competent Authority-cum-Tahasildar, Bhandaripokhari consolidated the valuation of land and structures while preparing the award under Section 3(G) of the National Highways Act. The calculation sheet reflects that the land value, when combined with the assessed structural value of Rs.35,64,329/-, yielded a total compensation of Rs.74,66,359/-, which was forwarded to the Regional Officer, NHAI, Bhubaneswar, vide Letter No.17 dated 1.2.2022, for administrative approval. Of the assessed structural value, the two components alone of —E.I. and P.H. (Electrical Installation and Public Health)—collectively amounted to Rs.19,25,828/-, as confirmed in the sheet appended to the Tahasildar’s calculation. Together, the civil elements and service installations yielded the total structural valuation of Rs.35,64,329/-, which was transmitted as part of the award proposal.
5. On 2.3.2022, the Regional Officer, NHAI (Respondent No.1) issued Letter No.655 directing the CALA to deduct the E.I. and P.H. components from the total compensation on the ground that neither the National Highways Act nor the RFCTLAR&R Act provided for payment of compensation under those heads. This communication became the central trigger of the present dispute.
6. Acting upon the above instruction, the Tahasildar deducted Rs.19,25,828/- from the originally calculated award and disbursed the remaining amount to the appellant on 23.6.2022.
7. Challenging this deduction, the appellant filed Arbitration Misc. Case No.02/22 before the Arbitrator-cum-Collector, Bhadrak seeking restoration of the deducted sum. On 7.10.2022, the Arbitrator rejected th
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