IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 28.09.2021 CORAM:

THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE C .M.A.No.2 267 of 2 019 a nd C.M.P.No.9 784 o f 2019 The Special District Revenue Officer, (Competent Authority Land Acquisition), National Highways, Collectorate, Vellore, District 632 009. .. Appellant Vs.

1. Ms.S.Jayalakshmi

2. The District Collector and Sole Arbitrator, Office of Collectorate, Sathuvachari, Vellore - 632 009.

3. The Project Director, National Highways Authority of India, PIU, Krishnagiri, No.25/1, Salem Main Road, Near KAKC Petrol Bunk, Krishnagiri.

(R3 impleaded vide order of this Court dated

05.11.2019 in C.M.P.No.20836 of 2019) .. Respondents Prayer: Civil Miscellaneous Appeal filed under Section 37 of the Arbitration and Conciliation Act, 1996 seeking to set aside the Judgement and decree order dated 11.10.2017, made in Arbitration O.P.No.03 of 2010 on the file of the Principal District Judge, Vellore, Vellore District.

For Appellant : Mr.Edwin Prabakar Special Government Pleader (CS)

For Respondent 1 : Mr.Ganesh for M/s.Ganesh & Ganesh For Respondent 3 : Mr.Su.Srinivasan SCGSC - - - - -

J U D G M E N T

(The case has been heard through video conference)

This appeal has been filed under Section 37 of the Arbitration and Conciliation Act, 1996 challenging the order dated 11.10.2017, passed by the learned Principal District Judge, Vellore in A.O.P.No.03 of 2010, filed under Section 34 of the Arbitration and Conciliation Act modifying the Arbitral Award dated 19.11.2009, passed under the National Highways Act, 1956 by the second respondent (District Collector - Arbitrator) by enhancing the market value of the first respondent property which was the subject matter of acquisition from Rs.495 per sq.meter to Rs.4,500 per sq.meter.

2. Aggrieved by the arbitral award dated 19.11.2009, fixing the market value of the property at Rs.495/- per sq.meter, the first respondent filed an application under Section 34 of the Arbitration and Conciliation Act before the learned Principal District Judge, Vellore in A.O.P.No.03 of 2010. By an order dated 11.10.2017, passed in A.O.P.No.03 of 2010, the learned Principal District Judge, Vellore has modified the arbitral award dated

19.11.2009, by passing the following order:

"In the result, this petition is partly allowed without costs. The Award dated 19.11.2009, made by the sole arbitrator and District Collector, Vellore bearing reference Na.Ka.G4.11764/04, dated 19.11.2009, is hereby set aside. The petitioner is entitled for Rs.4,500/- per sq.meter as compensation. The petitioner is not entitled for other compensations i.e. for Building, Loss due to purchase of Water, Loss due to reduction of production and for illegal demolition etc.,. The petitioner is entitled for the difference of compensation amount with 9% interest from the date of petition till realization in full. The petitioner is not entitled to any interest in the default period i.e. from 11.09.2014 to

14.09.2016."

3. Aggrieved by the order dated 11.10.2017, passed by the learned Principal District Judge, Vellore in A.O.P.No.03/2010, this appeal has been filed under Section 37 of the Arbitration and Conciliation Act, by the appellant, who is the first respondent in A.O.P.No.03/2010.

4. Heard Mr.Edwin Prabakar, learned Special Government Pleader (CS) appearing for the appellant, Mr.Ganesh, learned counsel appearing for the first respondent and Mr.Su.Srinivasan, learned SCGSC appearing for the third respondent.

5. The law is now well settled by the latest decision of the Hon'ble Supreme Court in the case of Project Director, National Highways Vs. M.Hakeem and another reported in 2021 SCC Online SC 473, where the Hon'ble Supreme Court has held that the Court exercising power under Section 34 of the Arbitration and Conciliation Act does not have the power to modify the arbitral award.

6. In the case on hand, under the impugned order passed under Section

34 of the Arbitration and Conciliation Act in A.O.P.No.03 of 2010, dated 11.1