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2025 Supreme(Online)(Mad) 17399

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Ms. Justice P.T. ASHA
Petitioner – Appellant
Versus
1 respondent/National Highways Authority – Respondent



Advocates:
For the Appellants/Petitioners:learned counsel for the petitioner
For the Respondents:learned counsel appearing on behalf of the respondents

The exclusive remedy to challenge an arbitral award under the National Highways Act is by application under Section 34 of the Arbitration and Conciliation Act; writ petitions under Article 226 are not maintainable for such challenges.

Headnote:(A) National Highways Act, 1956 - Sections 3-G(5) and 3-G(6); Arbitration and Conciliation Act, 1996 - Section 34 - Challenge to arbitral award passed by Statutory Arbitrator under National Highways Act - Remedy against award under Section 34 Arbitration Act only - Writ petition under Article 226 not maintainable (Paras 5, 14-15, 21).

(B) Constitution of India - Article 226 and Article 300-A - Right to property affected - Delay and laches may not bar fundamental rights enforcement but procedural remedy exclusive (Paras 6-9).

(C) Supreme Court precedents - Special statute regime excludes general law application where inconsistent - Appointment of arbitrator exclusively vesting with Central Government under National Highways Act (Paras 16-17).

Facts of the case:
The petitioner’s land was acquired by the National Highways Authority for highway expansion. An arbitral award initially fixed compensation at Rs.1,29,49,753/-, subsequently enhanced by the Statutory Arbitrator to Rs.1,97,27,713.75/-. The petitioner challenged the arbitral award by a writ petition under Article 226 seeking further enhancement after time to file under Section 34 of Arbitration Act had lapsed.

Findings of Court:
The Court held that the exclusive remedy to challenge the arbitral award is by an application under Section 34 of the Arbitration and Conciliation Act before a competent civil court. Invocation of extraordinary jurisdiction under Article 226 is not maintainable to challenge arbitral awards passed under Section 3-G(5) of the National Highways Act. The petitioner’s writ petition was dismissed with liberty to revive depending on Supreme Court orders.

Issues: Whether the High Court has jurisdiction under Article 226 to entertain writ petition challenging arbitral award passed under National Highways Act; Whether delay and lapse of limitation bars remedy; Applicability of Arbitration and Conciliation Act to arbitration under National Highways Act.

Ratio Decidendi: The Court reasoned that the National Highways Act is a special statute with a self-contained code including arbitration and compensation, excluding application of general law provisions for appointment of arbitrator except where the Act is silent; thus the remedy to challenge awards is only Section 34 application. Further, extraordinary writ jurisdiction under Article 226 cannot be invoked to challenge arbitral awards under a special statute when an efficacious alternative remedy exists. Delay or lapse of limitation does not extinguish fundamental rights but procedural safeguards and modes of challenge prescribed under special statutes must be followed (Paras 15-17, 21).

Result: Writ Petition dismissed. Liberty granted to revive based on further Supreme Court orders.

Table of Content
1. court’s final order dismissing writ petition with liberty (Para 1)
2. factual background of land acquisition and award (Para 2 , 3 , 4)
3. petitioner's arguments on maintainability and constitutional right to property (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12)
4. court’s analysis of statutory provisions and precedent on arbitration and writ jurisdiction (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
5. ratio decidendi: writ petition under article 226 not maintainable, remedy under section 34 (Para 21)

ORDER

The Writ petition has been filed challenging the Arbitral Award nd passed by the 2 respondent herein who is the Statutory Arbitrator under the National Highways Act.

2. The facts are briefly set out herein below:-

3. The petitioner is the owner of an extent of 5080 sq.mt. in S.No.540/1B in Karagathahalli Village, Palacode Taluk, Dharamapuri st District. The 1 respondent/National Highways Authority had acquired the said extent of land for the purpose of laying N.H-844-Hosur-Rayakottai- Dharmapuri Section-4 lane.

4. Ultimately, the 3rd respondent had awarded a compensation of a sum of Rs.1,29,49,753/- for the acquisition of the petitioner's land. Dissatisfied with the said compensation, the petitioner had preferred an Arbitration Petition under Section 3-G(5) of the National Highways Act nd nd before the 2 respondent. The 2 respondent vide his order dated 11.03.2023 had enhanced the compensation from a sum of Rs.1,29,49,753/- to a sum of Rs.1,97,27,713.75/-. Challenging this order, the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India has been invoked.

5. When the matter had come up for admission this Court had raised the issue of maintainability of the Writ Petition since under the provisions of the National Highways Act, the award passed by the Statutory Arbitrator is subject to the provisions of the Arbitration and Conciliation Act and therefore the remedy available to the petitioner is only to move an application under Section 34 of the Arbitration and Conciliation Act before the competent Civil Court. The learned counsel for the petitioner had taken time to make his submission on the ground of maintainability.

6. Today, when the matter came up, the learned counsel for the petitioner would submit that this Court has jurisdiction as it is the property right of the petitioner that has been affected and therefore a violation of Article 300(A) of the Constitution of India. He would also submit that the jurisdiction of this Court under Article 226 of the Constitution of India confers upon the Court a right to consider the said petition for enhancement. He would further argue that since the award was passed on 11.01.2022 and the time for filing a Section 34 Application has lapsed, the petitioner would be left without any recourse if this Court were to reject the Writ Petition.

7. He would rely upon the judgment of the Hon’ble Supreme Court reported in (2022) 7 SCC 508 - Sukh Dutt Ratra and Another Vs. State of Himachal Pradesh and Others to support his argument that right against deprivation of the property continues to be a Constitution right under Article 300-A of the Constitution of India and fetter without due process of law or authorization of law. The Hon’ble Supreme Court in this case wa considering two issues:-

(i) Whether the State on the ground of delay and laches can evade its legal responsibility towards those from whom private property has been expropriated?

(ii) Whether the order of the High Court that matter involved disputed questions of law and fact for determination on starting point of limitation, which could not be adjudicated in writ proceedings therefore, disposing of writ petition seeking compensation for subject land or initiation of acquisition proceedings under the Land Acquisition Act, 1894 , with liberty to institute a civil suit, can be sustained?

That was a case where the State had laid a road in the petitioner's property without resorting to acquisition proce

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