Landowners whose properties are acquired under the Highways Act are entitled to solatium and interest under the Land Acquisition Act, regardless of previous arbitration awards.

JUDGMENT

P.B.Suresh Kumar, J.

Lands and structures held by the appellants in this batch of appeals situated on either side of National Highway-47 were acquired for widening and improvement of the National Highway in terms of the provisions of the National Highways Act, 1956 (the Highways Act). Since the compensation determined by the Competent Authority under the Highways Act for the lands and structures acquired was not acceptable to the appellants, they applied for determination of the compensation by the Arbitrator appointed by the Central Government as provided for under Section 3G (5) of the Highways Act. The matters were accordingly referred for arbitration. On an appraisal of the facts and circumstances, the Arbitrator enhanced the compensation fixed for the lands and structures acquired from the appellants. The appellants challenged the awards of the Arbitrator in proceedings instituted under Section 34 of the Arbitration and Conciliation Act, 1996 (the Act) on various grounds. The challenge to the arbitral awards was, however, repelled by the court and these appeals are preferred against the decisions of the court in the applications preferred by the appellants under of the Act.

2. Heard Adv.P.R.Venkatesh, Adv.S.Sujin, Adv.P.Ravindranath, Adv.R.Manikantan, Adv.G.Sreekumar (Chelur), Adv.K.S.Babu, Adv.P.Santhosh (Poduval), Adv.Jacob Sebastian, the learned counsel for the appellants and Adv.Maulik Girish Nanavati, Adv.Bidan Chandran and Adv.K.A.Salil Narayanan, the learned Standing Counsel for the National Highway Authority of India.

3. The essence of the submissions made by the learned counsel for the appellants is that the appellants are entitled to solatium and interest as envisaged by the provisions of Sections 23 (2) and 28 of the Land Acquisition Act, 1894 , in addition to the value of the lands acquired from them, and insofar as the said benefits have not been given to them, the arbitral awards and the orders of the court affirming the arbitral awards are liable to be set aside. The learned counsel for the appellants placed reliance on the decision of the Division Bench of the Punjab and Haryana High Court inGolden Iron and Steel Forging v. Union of India and others, 2008 SCC Online P&H 498, to establish the entitlement of the appellants for solatium and interest in terms of (2) and 28 of the Land Acquisition Act. It was argued by the learned counsel that Sections 3J and 3G of the Highways Act were struck down in the said case as arbitrary, irrational and violative of Article 14 of the Constitution, insofar as they deny the benefits of solatium and interest to similarly placed persons. It was pointed out by the learned counsel that it was also declared in the said case that the land owners, who are compulsorily divested of their properties under the Highways Act would henceforth be entitled to solatium and interest as envisaged by the provisions of (2) and 28 of the Land Acquisition Act. It was pointed out by the learned counsel that the decision inGolden Iron and Steel Forging has been followed in large number of cases and the benefits aforesaid under the Land Acquisition Act were extended to similarly placed land owners as well. It was pointed out by the learned counsel that the judgment in the said case was pronounced on 28.03.2008 and the awards in favour of the appellants in all these cases have been passed by the Competent Authority long thereafter. According to the learned counsel, insofar as the said judgment was holding the field, it was obligatory on the part of the Competent Authority under the Highways Act to provide the appellants the benefits covered by the said judgment also. It was also pointed out by the learned counsel that in terms of the judgment inUnion of India and another v. Tarsem Singh and Others, (2019) 9 SCC 304 , the Apex Court has now approved the decision of the Division Bench of the Punjab and Haryana High Court inGolden Iron and Steel Forging. It was also pointed out by the learn