IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Sharad Kumar Sharma, J.
Basant Kumar Consul and Ors. - Appellants
Vs.
Union of India and Ors. - Respondent
Writ Petition No. 2406 of 2020 (M/S)
Decided On : 17-12-2020
Arbitration and Conciliation Act - Jurisdiction of District Judge - National Highways Act 1956, Section 3G(5)
Fact of the Case:
The petitioners sought direction for the District Judge to entertain their application under Section 34 of the Arbitration and Conciliation Act, 1996, against an Arbitral award rendered under Section 3-G(5) of the National Highways Act, 1956. The District Judge declined to entertain the application, citing jurisdictional issues under the Commercial Courts Act, 2015.
Finding of the Court:
The Court found that the nature of the dispute did not fall within the ambit of a 'commercial dispute' as defined under the Commercial Courts Act, and therefore, the District Judge had jurisdiction to entertain the application under Section 34 of the Arbitration and Conciliation Act, 1996.
Issues: Jurisdiction of the District Judge under Section 34 of the Arbitration and Conciliation Act, 1996, in light of the Commercial Courts Act, 2015.
Ratio Decidendi: The nature of the dispute, arising from an Arbitral award under the National Highways Act, did not constitute a 'commercial dispute' as defined under the Commercial Courts Act, and therefore fell within the jurisdiction of the District Judge under Section 34 of the Arbitration and Conciliation Act, 1996.
Final Decision: The writ petition was allowed, and a writ of mandamus was issued to the District Judge, Nainital, to entertain the application under Section 34 of the Arbitration and Conciliation Act, 1996, against the Arbitral award dated 03.09.2020.
JUDGMENT :
Sharad Kumar Sharma, J.
(Via Video Conferencing)
1. The petitioners have filed this present writ petition praying for an appropriate direction to the District Judge, Nainital, to entertain his application which has been preferred by him under Section 34 of the Arbitration and Conciliation Act, 1996, which they intended to prefer being aggrieved as against the Arbitral award dated 03.09.2020, which was rendered in Arbitration Application No. 51/18 of 2018-19, which was rendered by the Arbitrator, while exercising his powers under Section 3-G(5) of the National Highway Act of 1956. As far as the provisions contained under Section 3-G(5) of the National Highways Act, 1956, is concerned, that it is the authority of the Arbitrator, which is, vested in him pertains to an aspect of determination of an appropriate and 'adequate compensation', which would be payable to the land looser, whose land has been acquired by the National Highway Authority, for its various projects, for which the notification has been issued under the National Highways Act 1956, as contained in its Section 3 D. For ready reference Section 3 G of the Act of 1956 is extracted as under:-
(2) Where the right of user or any right in the nature of an easement on, any land is acquired under this Act, there shall be paid an amount to the owner and any other person whose right of enjoyment in that land has been affected in any manner whatsoever by reason of such acquisition an amount calculated at ten per cent of amount determined under sub-section (1), for that land.
(3) Before proceeding to determine the amount under subsection (1) or sub-section (21), the competent authority shall give a public notice published in two local newspapers, one of which will be in a vernacular language inviting claims from all persons interested in the land to be acquired.
(4) Such notice shall state the particulars of the land and shall require all persons interested in such land to appear in person or by an agent or by a legal practitioner referred to in subsection (2) of section 3C, before the competent authority, at time and place and to state the nature of their respective interest in such land.
(5) If the amount determined by the competent authority under sub-section(1) or sub-section (2) is not acceptable to either of the parties, the amount shall, on an application by either of the parties, be determined by the arbitrator to be appointed by the Central Government.
(6) Subject to the provisions of this Act, the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to every arbitration under this Act.
(7) The competent authority or the arbitrator while determining the amount under sub-section (1) or sub-section (5), as the case may be, shall take into consideration-
(a) the market value of the land on the date of publication of the notification under section 3A;
(b) the damage, if any, sustained by the person interested at the time of taking possession of the land, by reason of the severing of such land from other land;
(c) the damage, if any, sustained by the person interested at the time of taking possession of the land, by reason of the acquisition injuriously affecting his other immovable property in any manner, or his earnings;
(d) if, in consequences of the acquisition of the land, the person interest is compelled to change his residence or place of business, the reasonable expenses, if any, incidental to such change.]"
2. The grievance of the petitioners is that as against the said award dated 03.09.2020 when they approached the Tribunal, under Section 34 of the Arbitration and Conciliation Act, 1996, the Tribunal has declined to entertain their application and hence they approached this Court by filing the writ petition for the following reliefs:-
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