The court mandated the payment of arbitration-awarded compensation unless a stay is obtained, underscoring enforcement procedures under the Arbitration and Conciliation Act.

ORDER

The petitioner’s land was acquired under the National Highways Act, 1956 (NH Act). Being aggrieved by the compensation determined by the Special Tahsildar, the petitioner applied under Section 3G(5) of the NH Act before the District Collector for enhancement. By arbitration award dated 21.06.2023, the compensation payable to the petitioner was enhanced. On account of non-payment of enhanced compensation, the petitioner has approached this Court.

2. Ms. Indhu Bala, learned Additional Government Pleader, accepts notice for respondents 1 & 2. Mr.Su.Srinivasan, learned standing counsel, accepts notice for the third respondent.

3. The third respondent submits that the original compensation amount was paid to the petitioner and that a petition under Section 34 of the Arbitration and Conciliation Act, 1996 has been filed before the jurisdictional District Court at Dharmapuri challenging the arbitration award. It is also stated that said petition has been numbered as Arbitration O.P.No.10 of 2024. Learned standing counsel further submits that an arbitration award may be executed under Section 36 of the statute and that a petition under Article 226 of the Constitution of India cannot be resorted to for purposes of enforcement.

4. The Arbitration and Conciliation Act does not provide for an automatic stay of the arbitral award. If the third respondent requires a stay, the third respondent should apply for and obtain a stay. As on date, no stay has been obtained by the National Highways Authority of India.

5. Considering the aforesaid, this writ petition is disposed of on the following terms:

Unless the third respondent obtains a stay of the arbitral award dated

21.06.2023, compensation along with applicable interest shall be paid by the respondents to the petitioner within two months from the date of receipt of a copy of this order.

There will be no order as to costs.