IN THE HIGH COURT OF MADHYA PRADESH
Sushrut Arvind Dharmadhikari, J.
Jaidevi Verma – Appellant
Versus
National Highway Authority of India – Respondent
Arbitration Appeal No. 82 of 2021 with Arbitration Appeal No. 92 of 2021
Decided On : 13-09-2022
| Table of Content |
|---|
| 1. acquisition of land and associated compensation issues. (Para 1 , 3 , 5 , 12) |
| 2. determination of compensation under the highways act. (Para 4 , 14) |
| 3. court's stance on arbitration and jurisdiction. (Para 7 , 19 , 22) |
| 4. criteria for determining compensation under the act of 2013. (Para 21 , 24 , 27 , 28) |
| 5. final order on compensation payment. (Para 31 , 32 , 35) |
JUDGMENT
1. These two appeals have been filed under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter shall be referred to as 'The Arbitration Act'), whereby cross appeals have been filed by both the parties challenging the order dated 27.09.2021 passed in MJC No.49/2017 by the II Additional District Judge, District Betul (M.P.) on an application filed under Section 34 of the Arbitration Act. Arbitration Appeal No.82/2021 has been filed by the appellant -Smt. Jai Devi Verma being dissatisfied with the order of remand, whereas on the other hand the National Highways Authority of India (hereinafter shall be referred as to 'NHAI') has filed Arbitration Appeal No.92/2021 being aggrieved by the order of the Court below allowing the application filed by Smt. Jai Devi Verma observing that the learned Arbitral Tribunal has exceeded its jurisdiction as defined under Section 3-G(5) of the NATIONAL HIGHWAYS ACT , 1956 (hereinafter shall be referred to as 'the Highways Act') and also has remitted the matter back to the revenue authority (Sub Divisional Magistrate). Instead of deciding the issue of compensation, as defined under Section 3-G(5) of the Highways Act, the Commissioner-cum- Arbitrator has decided the irrelevant issues, which have rightly been set aside by the Court below while deciding the application under Section 34 of the Arbitration Act. Both the appeals are being heard analogously. The facts necessary for proper adjudication of these appeals are taken from Arbitration Appeal No.82/2021.
2. By the impugned order passed under Section 34 of the Arbitration Act, the matter stands remitted back in the following terms:
3. Brief facts of the case are that the appellant- Smt. Jai Devi Verma is the owner of land bearing Khasra Nos.356/1 and 356/2 situated at District Betul, which has been acquired by the NHAI vide notifications No.3-A dated 06.07.2010 and 3-D dated 12.05.2011 for the purpose of construction of four lane National Highway between Betul and Nagpur. At the request of the appellant, the Competent Authority for Land Acquisition (hereinafter shall be referred to as 'CALA') wrote a letter dated 05.01.2012 to NHAI requesting it to change the alignment of the road and to save the Automobile Tyre Manufacturing Factory owned by the appellant from its closure. In reply, the Project Director of NHAI issued a letter dated 18.01.2012 to CALA stating that as per the requirement of law, the road alignment cannot be changed and requested the CALA to pass the award including the compensation for relocation of the factory (machines and buildings etc.). The aforesaid letter is on record. Subsequently, the appellant submitted the valuation report of M/s. D.K. Jain & Co. to the Competent Authority for Land Acquisition (CALA) on 05.03.2012 in respect of the plant and machinery permanently installed on the acquired land. As per the aforesaid valuation report, the value of factory comes to Rs.64.24 Crores. The NHAI never disputed this valuation report since 05.03.2012 till date, meaning thereby the valuation is admitted by the NHAI.
4. Subsequently, the award was passed by the competent authority (CALA), Betul on 02.07.2012, in which an amount of Rs.39.51 lakhs was awarded in respect of the plant and machinery in place of Rs.64.24 Crores. In addition, the CALA awarded Rs.18.01 Crores for relocation of the tyre factory. The relevant portion of the award is being reproduced below:
5. Being dissatisfied with the award, both the parties applied for
Associate Builders Vs. DDA as reported in 2015 (3) SCC 49
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Smt. Kinnari Mullick and Anr. Vs. Ghanshyam Das Damani and Anr. as reported in (2018) 11 SCC 328
Ssangyong Engg. and Construction Co. Ltd. v. NHAI
Ssangyong Engineering and Constructions Vs. NHAI as reported in 2019 (15) SCC 131
The nature and status of the land on the date of notification must be considered in determining compensation for land acquired under the NHAI Act, 1956, and settled legal principles must be applied i....
Court held that an arbitrator cannot remand matters back to competent authority after initial determination, affirming the arbitrary powers under Section 3G(5) of NHAI Act and the doctrine of acquies....
The court upheld the authority to modify arbitration awards in compensation cases if the original decision is perverse or against public policy, ensuring fair compensation is granted to landowners.
The court established that under statutory arbitration for land acquisition, the authority must ensure fair compensation based on proper assessment and documentation, highlighting a constitutional ob....
The court upheld the discretion under Section 34(4) of the Arbitration and Conciliation Act to remit matters to the Arbitrator for addressing gaps in the award, particularly regarding solatium.
The court affirmed the discretion under Section 34(4) of the Arbitration and Conciliation Act to remit matters to the Arbitrator for reconsideration of solatium, following the Supreme Court's ruling ....
The court clarified that under Section 34 of the Arbitration Act, the scope of review is limited to setting aside awards for patent illegality or public policy violations, not for modification.
The arbitrator's authority under the National Highways Act is limited to determining compensation, and parties waive their right to object to awards if they do not raise timely challenges.
Section 29A of Arbitration Act inapplicable to arbitrations under Section 3G(5) of National Highways Act as special code; Central Government exclusive appointment overrides court extension/substituti....
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