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2024 Supreme(All) 1450

IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
NEERAJ TIWARI, J.
National Highway Authority Of India And Another – Petitioners
Versus
Jagpal Singh And Others – Respondents
Matters Under Article 227 No. 11516 Of 2024
Decided On : 11-11-2024

Advocates Appeared:
For the Petitioners: Shiv Kumar Singh
For the Respondents: Devansh Misra, C.S.C., Devesh Kumar Verma.

IMPORTANT POINT
The enforcement of an arbitral award can be initiated anywhere in the country where the decree can be executed, without requiring a transfer of decree from the court with jurisdiction over the arbitral proceedings.

Headnote:

(A) National Highways Act, 1956 - Section 3G(2) and 3G(5) - Arbitration and Conciliation Act, 1996 - Section 34(3) and 36 - Jurisdiction for execution of arbitral award - The court held that execution can be filed anywhere where the decree can be executed, without needing a transfer of decree from the court having jurisdiction over the arbitral proceedings. (Paras 10, 11, 20)

(B) Jurisdiction - The court emphasized that the objection regarding jurisdiction was waived by the petitioners when they filed an appeal under Section 34 of the Act, 1996, thus barring them from raising objections at a later stage. (Paras 16, 17)

Facts of the case:

The land of the respondents was acquired for highway widening, and the petitioners contested the jurisdiction of the execution case after the award was passed.

Findings of Court:

The court found no illegality in the execution order and upheld the jurisdiction of the District Judge, Etawah.

Issues: The main issue was whether the execution case should be filed in Kanpur or Etawah.

Ratio Decidendi: The court ruled that the enforcement of an award can be initiated anywhere in the country where the decree can be executed, and the petitioners had waived their right to object to jurisdiction.

Result: Petition dismissed.

JUDGMENT :

(Neeraj Tiwari, J.)

1. Heard Sri Shiv Kumar Singh, learned counsel for the petitioners, Sri Devansh Misra, learned counsel for the respondent Nos. 1 & 2 and learned Standing Counsel for the respondent No. 3.

2. Brief facts of the case are that land of respondent Nos. 1 & 2 has been acquired for widening of National Highway No. 2 at Maneyamau, Tehsil- Etawah, District-Etawah and in light of Section 3G(2) of the National Highways Act, 1956(hereinafter, referred to as, ‘Act, 1956’), amount of compensation has been determined. Section 3G(5) of the Act, 1956 also provides that if either of the parties are not satisfied with the determination of the amount, on an application by either of the parties the amount shall be determined by the arbitrator to be appointed by the Central Government. In the present case, Additional District Magistrate, Etawah vide order dated 23.12.2016 has fixed the amount of compensation. Against that, petitioners filed arbitration application under Section 3G(5) of the Act, 1956 before the Additional Commissioner, Administration, Kanpur Division, Kanpur, who is the competent authority appointed by the Central Government. Ultimately, the final award was passed vide order dated 05.08.2019. Petitioners also filed restoration application along with delay condonation application dated 17.10.2019 against the order dated 05.08.2019 and the same was rejected vide order dated 06.01.2022. Against the said award, petitioners have preferred Civil Misc. Case No. 64 of 2022 under Section 34(3) of Arbitration and Conciliation Act, 1996(hereinafter, referred to as, ‘Act, 1996’), which was also rejected vide order dated 18.07.2023 by the Additional District Judge(POCSO Act), Etawah. Against the order dated 18.07.2023, petitioners preferred Appeal Under Section 37 of Arbitration and Conciliation Act 1996 Defective No. 652 of 2023, delay was condoned vide order dated 21.03.2024 and direction was issued to allot regular number to Appeal. It is undisputed between the parties that till date, no stay or interim order has been passed upon the aforesaid appeal filed by the petitioner.

3. Now, respondent Nos. 1 and 2 have preferred execution of award before the District Judge, Etawah, which was transferred to Additional District Judge, Etawah and numbered as Execution Case No. 46 of 2023. In the said case, petitioner has filed objection, numbered as 17Ga raising the issue of jurisdiction of the court, which was objected by the respondent Nos. 2 & 3 by filing rebuttal numbered as Paper No. 18Ga. The objection of petitioners has been rejected vide order dated 05.08.2024. Hence present petition.

4. Sri, Shiv Kumar Singh, learned counsel for the petitioners submitted that office of respondent No. 1 is situated at Kanpur and from there it carries its business. Further, arbitration also took place at Kanpur, therefore, Section 36 of the Act, 1996 and provisions of CPC would by applicable and jurisdiction of execution case shall lie with the District Judge, Kanpur.

5. In support of his contention, he place reliance upon the judgment of Hon’ble Apex Court in the matter of Sundaram Finance Limited Vs. Abdul Samad and Ors.: AIR 2018 SC 956, judgment of this Court in the matter of Ge Money Financial Services Ltd., New Delhi Vs. Mohd. Azaz & Anr): 2013 SCC Online AII 13365 and judgment of High Court of Delhi in the matter of Daelim Industrial Co. Ltd. Vs. Numaligarh Refinery Ltd.: MANU/ DE/1316/2009.

6. Per contra, Sri Devansh Misra, learned counsel for the respondent Nos. 1 & 2 vehemently opposed the submission raised by learned counsel for the petitioners and submitted that against the said award, petitioners have preferred Civil Misc. case No. 64 of 2022 under Section 34(3) of the Act, 1996, which was rejected vide order dated 18.07.2023. Once he has filed appeal before the District Judge, Etawah under Section 34 of the Act 1996, he acquiesces the jurisdiction with the District Judge, Etawah, therefore, in light of Section 4 of the Act,

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