2017 Supreme(Sikk) 76
IN THE HIGH COURT OF SIKKIM, GANGTOK
SATISH K. AGNIHOTRI, J.
Prakash Chand Pradhan Son of late Manik Chand Pradhan - Appellant
Versus
Union of India - Respondent
Arb. P. No. 01 of 2017
Decided on : 05-07-2017
For the Appellant :Mr. T.B. Thapa, Mr. Ranjan Chettri, Mr. Khem Raj Sapkota and Ms. Chandrika M. Karki, Advocates
For the Respondent:Mr. Karma Thinlay, Mr. Santosh Kr. Chettri, Asstt. Government Advocate
Headnote:
Arbitration - Land Acquisition - Arbitration and Conciliation Act, 1996 - Section 11 (4), 11 (5) and 11 (6) - National Highways Act, 1956 - Section 3A, 3D, 3G(5) - [Arbitration] - [Land Acquisition] - [Arbitration and Conciliation Act, 1996: Section 11 (4), 11 (5), 11 (6), National Highways Act, 1956: Section 3A, 3D, 3G(5)] - The court discussed the provisions of the Arbitration and Conciliation Act, 1996 and the National Highways Act, 1956, focusing on the appointment of an arbitrator, the competence of the Central Government to appoint an arbitrator, and the communication of the appointment order. The court emphasized the necessity of communication of the appointment order to the affected party and the applicability of the Arbitration and Conciliation Act, 1996 to the arbitration under the National Highways Act, 1956. The court also highlighted the failure of the Central Government to appoint an arbitrator within the prescribed time and the qualifications required for an arbitrator.
Fact of the Case:
The petitioner, the landowner of a land acquired by the Government of India, sought appointment of a Sole Arbitrator under the Arbitration and Conciliation Act, 1996, due to dissatisfaction with the compensation amount. The Central Government had appointed an arbitrator, but the appointment was not communicated to the petitioner. The petitioner filed a petition seeking the court's direction to appoint an arbitrator.
Finding of the Court:
The court found that the appointment of the arbitrator by the Central Government was not communicated to the petitioner, rendering it invalid. The court also held that the Central Government failed to appoint the arbitrator within the prescribed time. Consequently, the court proceeded to appoint an arbitrator in accordance with the law.
Issues: The issues involved the validity of the appointment of the arbitrator by the Central Government, the necessity of communication of the appointment order, and the failure of the Central Government to appoint an arbitrator within the prescribed time.
Ratio Decidendi: The court emphasized the necessity of communication of the appointment order to the affected party, the failure of the Central Government to appoint an arbitrator within the prescribed time, and the applicability of the Arbitration and Conciliation Act, 1996 to the arbitration under the National Highways Act, 1956.
Final Decision: The court appointed Mr. Justice A.P. Subba, former Judge of the High Court, as the arbitrator to the disputes, after finding the appointment made by the Central Government as invalid.
JUDGMENT :
Satish K. Agnihotri, J.
The petitioner, stated to be the landowner of the land bearing Khesra Plot No. 2384/3685/P ad-measuring 0.46 Hectare land situate at IBM, Central Pendam Block, Rangpo Sub Division, East District, Sikkim, has come up with this petition, purported to be under Section 11 (4), 11 (5) and 11 (6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act of 1996’), seeking appointment of a Sole Arbitrator to adjudicate and decide the issue of fair compensation in respect of the land acquired therein.
2. The brief facts, as projected by the petitioner, are that the Government of India, Ministry of Road Transport and Highways published a notification dated 13th April 2016 under sub-section (1) of Section 3A of the National Highways Act, 1956 (hereinafter referred to as ‘NH Act’), declaring its intention to acquire the land specified in the Schedule annexed thereto for building (widening/two-laning, etc.) including the bypasses, maintenance, management and operation of National Highway No. 10 (old NH No. 31A) on the stretch of land from Km. 51.870 to Km. 53.900 in East District, in the State of Sikkim, wherein the land-in-question was included. Subsequent thereto, a notification dated 09th July 2016 (Annexure P-3) under Section 3D of the NH Act, was published in the Gazette of India Extraordinary Part II - Section 3 - Sub-section (ii) providing that no objection was received from any person by the competent authority and as such, land specified therein stands acquired and vested absolutely in the Central Government, free from all encumbrances. The compensation in respect of land-in-question owned by the petitioner was determined under the provisions of NH Act to the tune of Rs.10,92,04,010/- (Rupees Ten Crores Ninety Two Lakhs Four Thousand and Ten) only. The petitioner accepted the cheque dated 12th January 2017 for the said amount. Feeling dissatisfied with the determination of the amount, it is stated that the petitioner has made a representation to the competent authority under the provisions of NH Act, namely to the third respondent, requesting for determination of the amount of compensation, rehabilitation and resettlement and other benefits by an Arbitrator to be appointed by the Central Government, as provided under Section 3G(5) of the NH Act. Finding no response from the third respondent, the instant petition is filed as aforestated.
3. Mr. T.B. Thapa, learned Senior Counsel appearing for the petitioner, referring to the provisions of Section 3G(5) of the NH Act, would contend that the provisions of the Act require reference to appoint an Arbitrator by the Central Government, in the event, the amount determined by the competent authority is not acceptable to either of the parties. It is further contended that the provisions of the Act of 1996 is applicable to the arbitration under sub-section (6) of Section 3G of the NH Act. Thus, the petitioner has made a representation for appointment of the Arbitrator under the provisions of the Act of 1996 on 17.01.2017, which remained un-responded. Thus, this Court, exercising its jurisdiction under Section 11 (6) of the Act of 1996, may appoint an Arbitrator, who is non-partisan, unbiased, possessed with high dignity, well qualified and also not being an employee of the Central or State Government, as Sole Arbitrator to adjudicate the disputes involved herein, in respect of determination of compensation for the land-in-question acquired by the Central Government.
4. Mr. Thapa would further contend that Section 12(5) read with Seventh Schedule and Fifth Schedule of the Act, 1996 requires that the Arbitrator, may not be interested in the dispute and also has any other past or present relationship with the parties, must be unbiased and of unimpeachable integrity. Referring to the counter affidavit filed by the respondents-Central Government, wherein the Central Government has come up with an Order dated 08th July 2016, whereunder Secret