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2024 Supreme(All) 151

IN THE HIGH COURT OF ALLAHABAD
MANOJ KUMAR GUPTA, KSHITIJ SHAILENDRA, JJ.
Dr. Rajeev Sinha and Others - Petitioners
Versus
Union of India and Others - Respondents
Writ - C Nos. 33840, 42177 of 2023
Decided On : 05-02-2024

Advocates Appeared:
For the Petitioner:Kalpana Sinha, Sr. Advocate, Raghav Dwivedi.
For the Respondent: A.S.G.I., C.S.C., Pranjal Mehrotra, Raghav Dwivedi.

The court emphasized the importance of following the directions issued by a superior court/authority and held that the failure to do so warranted the quashing of the order. The court also clarified that the writ petition was maintainable despite the availability of an alternative remedy under Section 34 of the Act of 1996.

Headnote:

Arbitration - Land Acquisition - Arbitration and Conciliation Act, 1996, National Highways Act, 1956 - Section 3A, 3D, 3G(5), 3G(6), 3G(7)(a) - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 26 - [Section 3A, 3D, 3G(5), 3G(6), 3G(7)(a), 26] - The court quashed the order of the District Magistrate/Arbitrator/Collector, Jhansi and allowed the writ petition, directing the petitioner to approach the Arbitrator/Collector, Jhansi for passing a fresh award strictly in consonance with the directions issued in the order dated 27.04.2022 passed by the District Judge, Jhansi.

Fact of the Case:

The petitioner purchased land which was later acquired by the government. The petitioner challenged the compensation awarded by the Arbitrator under the provisions of the Arbitration and Conciliation Act, 1996 and the National Highways Act, 1956. The District Judge set aside the award and remanded the matter to the Arbitrator for fresh consideration. The Arbitrator rejected the reference, leading to the present writ petition.

Finding of the Court:

The court found that the Arbitrator failed to follow the directions issued by the District Judge in the order of remand and had not considered the market value of the land as required by law. The court also held that the writ petition was maintainable despite the availability of an alternative remedy under Section 34 of the Act of 1996.

Issues: The main issue was whether the Arbitrator's order should be quashed and whether the writ petition was maintainable despite the availability of an alternative remedy under Section 34 of the Act of 1996.

Ratio Decidendi: The court held that the Arbitrator's failure to follow the directions issued by the District Judge and not considering the market value of the land as required by law warranted the quashing of the order. The court also emphasized that the writ petition was maintainable despite the availability of an alternative remedy under Section 34 of the Act of 1996.

Final Decision: The court quashed the order of the District Magistrate/Arbitrator/Collector, Jhansi and allowed the writ petition, directing the petitioner to approach the Arbitrator/Collector, Jhansi for passing a fresh award strictly in consonance with the directions issued in the order dated 27.04.2022 passed by the District Judge, Jhansi.

JUDGMENT :

Kshitij Shailendra, J.

1. These two connected writ petitions arise out of same controversy and, therefore, were heard together. Since all the relevant facts and arguments are covered by Writ C No.33840 of 2023, a detailed judgement is being pronounced treating the said writ petition as the leading one and after conclusion of the judgement in the said writ petition, a separate order shall be passed in the connected Writ C No.42177 of 2023.

2. The Writ C No.33840 of 2023 under Article 226 of the Constitution of India has been filed assailing the order/award dated 28.07.2023 passed by the Collector, Jhansi in the capacity of Arbitrator under the provisions of Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act of 1996’) made applicable by virtue of Section 3G(6) of the National Highways Act, 1956 (hereinafter referred to as ‘the Act of 1956’) in Case No. 2337 of 2023 (Computerized Case No.D202306370002337) (Dr. Rajeev Sinha v. National Highways Authority of India, Jhansi), with a further prayer directing the District Magistrate /Collector /Arbitrator, Jhansi to decide the said case in terms of guidelines/directions contained in the judgment and order dated 27.04.2022 passed by the District Judge, Jhansi.

THE WRIT PETITION

3. The facts of the case are that the petitioner purchased part of land covered by Plot No.481, ad-measuring 0.230 hectares, i.e. 2300 sq. mtrs., situated in Village Koncha Bhanwar, Pargana, Tehsil and District-Jhansi, vide registered sale deeds dated 27.03.1993 and 04.02.1994. It is pleaded that, in exercise of powers under the Act of 1956, the Central Government issued a notification dated 03.09.2009 under Section 3A of the Act which was followed by notification dated 09.04.2010 under Section 3D of the Act acquiring the petitioner’s land and the Special Land Acquisition Officer, assessing the market value of the land @ Rs.15 lacs per hectare and attaching certain value to the constructions existing thereon, declared an award dated 30.09.2010. The petitioner approached the Competent Authority as per Section 3G(5) of the Act of 1956 whereafter an Arbitration Case No.521 of 2012 was registered before Collector/ District Magistrate, Jhansi. The Arbitrator declared his award on 15.09.2017 on the lines of the Special Land Acquisition Officer principally on the ground that the land had not been declared as ‘abadi’ under Section 143 of the UP. Zamindari Abolition and Land Reforms Act, 1950 (hereinafter referred to as ‘U.P. Z.A. & L.R. Act’) and, therefore, would continue to remain an ‘agricultural land’.

4. The petitioner assailed the award dated 15.09.2017 by availing statutory remedy under Section 34 of the Act of 1996 made applicable by virtue of Section 3G(6) of the Act of 1956. The District Judge, Jhansi, by judgment and order dated 27.04.2022, passed in Misc. Case No.12 of 2017 under Section 34 of the Act of 1996, set aside the award dated 15.09.2017 and remanded the matter to the Arbitrator for fresh consideration in the light of observations made in the order itself after affording opportunity of hearing to the parties. After remand, the District Magistrate/Collector, Jhansi, as Arbitrator, has, by the order impugned dated 28.07.2023, rejected the reference holding that the compensation awarded under the award dated 30.09.2010 was according the law and that the petitioner was not entitled to any further compensation. It is this order of the Arbitrator which is under challenge in the present writ petition and has been assailed mainly on the ground that the directions contained in the order of the District Judge dated 27.04.2022 have not been followed by the Arbitrator. The detailed arguments advanced on behalf of the petitioner shall be noted at appropriate place in this judgement.

PREVIOUS PROCEEDINGS IN THE INSTANT CASE

5. This Court, in its order dated 04.10.2023, noted the main contention advanced on behalf of the petitioner that the Collector had chosen to overlook the directions

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