The 2019 Rules do not create automatic stay and are formulated for the internal functioning of the Government regarding the deposit of compensation amount and making funds available to the competent authority for land acquisition.

JUDGMENT

Raj Mohan Singh, J.(Oral) - Vide order dated 30.09.2022, a bunch of cases with the lead case bearing CR No.259 of 2022 was decided. In paras No.29, 34, 35, 36, 38 and 39 following observations were made by this Court:-

''[29], In view of BGS SGS Soma JV case (supra), the petitioners cannot be allowed to contend that as per 2019 Rules, there is automatic stay in contrary to Section 36 of the Arbitration and Conciliation Act. Reliance can be placed upon Pam Developments and Private Limited Vs. State of West Bengal, 2019(3) RCR (Civil) 603 and BCCI Vs. Kochi Cricket Pvt. Ltd., (2018) 6 SCC 287, where the contentions with regard to automatic stay was deprecated by the Court and it was held that in view of Section 36 of the Act, mere filing of an application under Section 34 of the Act, shall not stay enforceability of the award unless the Court grant a stay of operation of the arbitration award in accordance with the provision of sub Sections 2 and 3 of Section 36 of the Act. No stay has been granted by the Court at Bathinda in the objection petition under Section 34 of the Arbitration and Conciliation Act. Petitioners have deposited the awarded amount as per the award by the Arbitrator at Faridkot. It is only the enhanced amount for which this method has been adopted by the petitioners under the garb of Section 42 of the Act. The respondents are losing huge amount per day towards interest. The amount has been partly deposited by the petitioners in the executing Court. Petitioners are not going to lose anything if the amount is released to the claimants. Para No.1 of the award itself shows that Government of India had appointed the Commissioner, Faridkot, Division Faridkot as Arbitrator under Section 3G(5) and (6) of the National Highways Act, 1956 vide letter dated 16.07.2015 for Bathinda District, Punjab, thereby creating seat of the Arbitrator at Faridkot. In the proceedings arising out of the same award, the petitioners have already deposited the enhanced amount in the executing Court in Ex.535 of 2019 titled Harpreet Singh Vs. National Highway Authority of India. Perusal of Arbitration Case No.10 dated 04.01.2016 titled Union of India and others Vs. Ujjagar Singh and others decided on 29.01.2016 and Case Code No.PBLD01-000559-2016 titled Nirmal Singh and another Vs. Union of India and others decided on 29.01.2020 would show that the petitioners have admitted the jurisdiction of the Court, where the award is passed. Even in those cases, the petitioners had admitted that the objection petition under Section 34 of the Arbitration and Conciliation Act is maintainable in the Court where the award is passed by the Arbitrator and the objection petition under Section 34 of the Act, challenging the award can only be filed before the Court, who is having jurisdiction over the place where the award is passed. The stand has been taken in view of the judgment of the Hon'ble Apex Court in Civil Appeal No.2077 of 2015 arising out of SLP(C) No.8675 of 2014 titled M/s Bhandari Udyog Ltd. Vs. Industrial Faciliation Council and another.

[34]. As regards CR No.831 of 2022, it can be appreciated that as regards Rule 3 of the National Highways (Manner of depositing the amount by the Central Government; making requisite funds available to the competent authority for acquisition of land) Rules, 2019 is concerned, the same does not create any automatic stay as the Rule is only in respect of manner in which the disbursement has to be made and also the manner of making requisite funds available to the competent authority. Rule 3 of the National Highways Act deals with the manner of making requisite funds available to the competent authority which shall be as follows:-

'3. The manner of making requisite funds available to the competent authority shall be as follows:-

(i) Subject to provisions of the Act, the executing agency authorised by the Central Government in this behalf, shall open and maintain an account with one or more Scheduled Commercial