HIMACHAL PRADESH HIGH COURT
Ajay Mohan Goel, J.
Hari Ram and Ors. – Appellants
versus
National Highways
Authority of India – Respondent
OMP(M) No.63 of 2023
Decided on 1.5.2024
Arbitration and Conciliation Act, 1996 – Sections 23(4) and 37 – National Highways Act, 1956 – Section 3G (5) – Constitution of India – Article 300A – Appeal against arbitral award – Dispute arising from acquisition of land – There is no time limit fixed under Section 29(A) as to within which period parties can approach Court for extension of time after expiry of statutory period for the purpose of pronouncement of award – Award was not made by Arbitrator within a period of twelve months from date of completion of pleadings – Statement of claim and defence under Section 23 shall be completed within a period of six months from date Arbitrator(s) may receive notice in writing of their appointment – As right to property is a Constitutional right under Article 300A of Constitution of India, appellant cannot be deprived of his property except in accordance with law – As land of petitioner has been acquired under provisions of National Highways Authority of India Act, 1956, appellant has a right to be adequately compensated for land of his which has been acquired as per law – NHAI is legally bound to pay land owner adequate amount for the purpose of acquisition of his land – Matter emitted back to Arbitrator for adjudication afresh and by extending time, as agreed, for pronouncing of a fresh award. (Paras 9, 10, 11 and 12)
Result: Appeal disposed of with observations.
JUDGMENT (ORAL)
OMP(M) No. 63 of 2023
By way of this application, a prayer has been made for condonation of delay in filing the appeal.
2. Having heard learned Counsel for the parties and having gone through the averments made in the application, the same is allowed, as prayed for and delay in filing the appeal is condoned. Appeal be registered. The application stands disposed of.
3. With the consent of the parties, the appeal is being disposed of at this stage itself.
4. By way of this appeal filed under Section 37 of the Arbitration and Conciliation Act, 1996, (hereinafter referred to as ‘the 1996 Act’), the appellant has challenged judgment dated 17.05.2022, passed by the Court of learned District Judge, Mandi, District Mandi, H.P., in Arbitration Petition No.72 of 2019, titled as National Highways Authority of India versus Kanihya Lal and another, in terms whereof, the Arbitration Petition was allowed by the learned District in the following terms:-
“In view of the above, the present application(s) is allowed and an award dated 23.03.2019 passed by the learned Arbitrator is set aside. However, this will not prevent any of the parties from applying for the extension of time, if otherwise legally admissible. Original order be placed in Arbitration Petition No.73 of 2019 [titled NHAI vs. Kanhiya Lal] and authenticated copy thereof be placed in the other consolidated Arbitration petition(s). Memo of costs be prepared. The record of the learned Arbitrator along with a copy of this judgment be returned and the record of this Court, after due completion, be consigned to the record room.”
5. Brief facts necessary for the adjudication of this appeal are that Central Government issued a Notification on 21.04.2012 for the purpose of acquisition of the land comprised in Revenue Estate Dehar, Hadbast No.75, Tehsil Sundernagar, District Mandi, H.P., for the purpose of four laning of National Highway-21. The Notification under Section 3(A) (1) of the NHAI Act, 1956 was published in the official gazette on 21.04.2012. The Notification under Section 3(G)(3) of the said Act was published in the newspapers ‘The Tribune’ and ‘Dainik Jagran’ on 22.05.2012. After complying with the other statutory authority, the Competent Authority assessed the market value of the acquired land @ Rs.35/- lac per bigha for all kind irrespective of the classification and nature. Feeling aggrieved by the award of the Competent Authority, the land owner made a Reference under Section 3G (5) of the National Highways Act, 1956 for enhancement of compensation. According to the landlord, the determination of the value of the acquired land @ Rs.35 lac per bigha was unfair, inadequate and unjust as the market value of the said land was more than Rs.1.00/- Crore per bigha at the time of the issuance of the notification of acquisition. The Reference was answered by the learned Arbitrator vide award dated 22.03.2019, by ordering the enhancement of the compensation to Rs.36.00/- lac per bigha and also ordered payment of 30% solatium and 9% interest thereon to the appellants.
6. Feeling aggrieved, the National Highways Authority of India preferred Arbitration Petition under Section 34 of the Arbitration and Conciliation Act, which has been decided by the learned District Judge in terms of the impugned judgment.
7. In terms of the provisions of Section 29(A) of the Arbitration and Conciliation Act, the award is to be made within a period of 12 months from the date the arbitral tribunal enters upon the Reference and the parties may by consent in terms of sub-section (3) thereof extend the period specified in sub-section (1) for making award for a further period not exceeding six months. Learned District Judge held that herein as the award was announced by the learned Arbitrator after the expiry of one year and without their being any express consent of the parties to extend the period of making the award, therefore, the same was not sustainable in the eyes of law.
8. I have h
As right to property is a Constitutional right under Article 300A of Constitution of India, appellant cannot be deprived of his property except in accordance with law.
The main legal point established in the judgment is that the award must be made within the specified time limit as per Section 29(A) of the Arbitration and Conciliation Act, 1996, and the parties hav....
Arbitration awards must be issued within prescribed time limits. If the period exceeds without consent or extension from the Court, the award can be invalidated.
The court possesses the discretion under Section 29-A(4) of the Arbitration and Conciliation Act, 1996 to extend the time limit for concluding arbitral proceedings when the statutory period has lapse....
The court possesses the discretion under Section 29-A of the Arbitration and Conciliation Act to extend the time limit for making an arbitral award, stressing the statutory obligation of the Arbitrat....
An arbitrator is mandatorily required to complete proceedings and pass an award within the statutory time limits prescribed under the Arbitration and Conciliation Act, 1996; failure to do so warrants....
Point of Law : When a statute envisages an authority, be it an Arbitrator, to do a particular act in a particular manner and in a prescribed time schedule, then onus is upon the said authority/Arbitr....
Timely completion of arbitration proceedings is mandatory under the Arbitration and Conciliation Act, 1996, and failure to comply may result in termination of the Arbitrator's mandate.
Adherence to statutory provisions and prescribed time schedules in arbitral proceedings is essential, and any delay must be justified.
Timely completion of arbitration proceedings is mandatory under the Arbitration and Conciliation Act, and failure to adhere to statutory timelines may result in termination of the arbitrator's mandat....
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