IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17^TH DAY OF NOVEMBER, 2025 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA MISCELLANEOUS FIRST APPEAL NO. 1321 OF 2025 (AA)

BETWEEN:

NATIONAL HIGHWAY AUTHORITY OF INDIA PIU-MANGALORE, DOOR NO.3-29, BETHEL, THARETHOTA, NEAR PUMPWELL (NH-66), MANGALORE-575005.

REPRESENTED BY ITS PROJECT DIRECTOR.

…APPELLANT (BY SRI. SHOBHITH N SHETTY, ADVOCATE)

AND:

Digit ally

1. SRI. U. K. ABDUL RASHEED signed by NIRMALA S/O. LATE. U.K. ABBAS, DEVI UPPINANGADY OLD GATE, Location: SUBRAMANYA CROSS ROAD, HIGH COURT UPPINANGADY VILLAGE, OF PUTTUR TALUK-574241.

KARNATAKA

2. THE COMPETENT AUTHORITY AND SPECIAL LAND ACQUISITION OFFICER, (NHAI), N.H - 75 HASSAN B C ROAD SECTION, NO. HIG-64, DTDC COURIER OFFICE BUILDING, 1ST FLOOR, KHB COLONY, CHANNAPATTANA, OPP. KSRTC NEW BUS STAND, HASSAN-573201.

3. THE DEPUTY COMMISSIONER AND ARBITRATOR, DAKSHINA KANNADA DISTRICT, MANGALURU-575008.

…RESPONDENTS (BY MS. ANANYA RAI, ADVOCATE FOR SRI. M. VISHWAJITH RAI, ADVOCATE FOR R1 SRI. K.S. HARISH, GA FOR R3 R2 SERVED AND UNREPRESENTED)

THIS MFA IS FILED UNDER SECTION 37(1)(C) OF THE ARBITRATION AND CONCILIATION ACT, AGAINST THE ORDER DATED 09.12.2024 PASSED IN A.P.NO.106/2022 ON THE FILE OF THE IV ADDITIONAL DISTRICT AND SESSIONS JUDGE, DAKSHINA KANNADA, COMMERCIAL COURT, MANGALURU, DISMISSING THE PETITION FILED UNDER SECTION 34 OF ARBITRATION AND CONCILIATION ACT 1996 READ WITH SECTION 3G(6) OF THE NATIONAL HIGHWAYS ACT.

THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA

ORAL JUDGMENT

(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

1. The National Highways Authority of India [NHAI] has filed the present appeal under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 [hereafter A&C Act] impugning an order dated 09.12.2024 [impugned order] passed by the IV Additional District Judge and Commercial Court, D.K, Mangaluru, [the trial Court] in A.P.No.106/2022. NHAI had preferred the said application under Section 34 of the A&C Act impugning an Arbitral Award dated 19.04.2022 [impugned award] passed by the Deputy Commissioner & Arbitrator, Dakshina Kannada District, Mangalore [Arbitral Tribunal], whereby the compensation determined by the Competent Authority and Special Land Acquisition Officer[SLAO], for acquisition of the subject land, was enhanced.

2. Respondent no.1 is the absolute owner of land measuring 8 cents falling in Survey No. 61/1, Uppinangady Village, Puttur Taluk, which he had acquired in terms of a Gift Deed dated 02.06.2018. The land to an extent of 324 square metres was acquired in the first stage for widening of NH 75 (48) into four lanes. The remaining land to an extent of 263 square meters [subject land] was further acquired in the second stage. The present dispute relates to the acquisition of the subject land – the said 263 square meters of land falling in Survey No.61/16 (formerly Sy.No.61/1). The preliminary notification under Section

3A of the National Highways Act 1956 [NH Act] for acquisition of the said land was published on 07.07.2020. There is no dispute that respondent no.1 was entitled to receive compensation on the basis of the value of the subject land as on that date.

3. SLAO (respondent No.2) determined the compensation for the subject land at Rs.24,14,794/- inclusive of solatium of 100% and additional Compensation @ 12% per annum. The tabular statement setting out the compensation as determined is set out below:

4. There is no dispute that the said value was determined on the basis that the subject land was dry land. However, the said land was converted to residential land by an order dated

17.07.1996. Respondent no.1 was aggrieved by the compensation so fixed and accordingly, filed an application under Section 3G(5) of the NH Act, inter alia, assailing the SLAO’s award dated 21.10.2020 determining the compensation