[2026:RJ-JD:3026]

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR S.B. Civil Misc. Appeal No. 2299/2024 Project Director, National Highways Authority Of India, Govt. Of India, C-38, Sadulganj, Bikaner Through Project Director Shri Piyush Ranjan Yaduvanshi S/o Shri Amar Singh Agad About 54 Years, R/o C-38, Sadulganj, Bikaner,raj.

----Appellant Versus

1. Nemchand S/o Surjaram, R/o Before Haryana Hotel, Gangashahar Road, Bikaner

2. Jugal Kishore S/o Nemichand, R/o Before Haryana Hotel, Gangashahar Road, Bikaner

3. Manju W/o Jugal Kishore, R/o Before Haryana Hotel, Gangashahar Road, Bikaner

4. Competent Authority (Land Acquisition), Sub Divisional Officer, Bikaner,raj.

----Respondents For Appellant(s) : Mr. Mahendra Singh Soni.

For Respondent(s) : Mr. J.K. Bhaiya.

HON'BLE MR. JUSTICE SANJEET PUROHIT

Order

19/01/2026

1. The present appeal has been filed under section 37 of the Arbitration and Conciliation Act, 1996 (“Act of 1996”) challenging the judgment and order dated 27.03.2024 passed by Learned Additional District Judge No. 5, Bikaner, thereby rejecting the appeal preferred by the appellant – National Highways Authority of India (NHAI) under section 34 of the Act of 1996, as well as the order dated 13.12.2021 passed by Learned Arbitrator - District Collector, Bikaner.

2. Briefly stated, the factual background to the present appeal is as follows. The Central Government, vide Gazette notification dated 02.07.2014, published under section 3A of the National Highways Act, 1956 (“Act of 1956”), notified the project for the construction of National Highway No. 15 (Bikaner to Phalodi section) and the Sub-Divisional Officer (“SDO”), Bikaner, was appointed as the Competent Authority for Land Acquisition (“CALA”) to regulate the acquisition proceedings under the Act of

1956.

2.1 For the purposes of the said section of NH-15, 700 square meters of the land situated at Village Naal Chhoti, Khasra No. 324/1, admeasuring 1,631 square meters, were acquired and after completing the procedure provided under Sections 3A to 3G of the Act of 1956, compensation was awarded for the thus acquired portion of land (“land in question”), vide order dated 21.03.2016, treating the land as industrial based on the entries then existing in the revenue records.

2.2. Parallel to the acquisition proceedings, private respondents/claimants preferred an appeal before SDO, Bikaner, for the rectification of the revenue entries. Private respondents/claimants contended that the land in question had been converted for commercial use vide an order dated 30.07.1999 (“Conversion Order of 1999”) under the Rajasthan Land Revenue (Conversion of Agriculture Land for Non-agricultural purpose in Rural Areas) Rules, 1992 (“Conversion Rules, 1992”). They asserted that despite this conversion, the revenue records erroneously reflected the land as industrial instead of commercial.

2.3. The said appeal of the claimants was allowed on 11.02.2017, and the land was officially recorded as commercial on the basis of the said conversion order of 1999.

2.4. The claimants then moved an application under section 3G(5) of the Act of 1956 for amendment/modification of the compensation award and to determine the compensation by taking into account the commercial rates instead of industrial. The matter was finally adjudicated by Learned Arbitrator, vide order dated 13.12.2021, allowing the claimants' application and holding that the compensation ought to be determined by taking into account market value based on commercial rates. Accordingly, Learned Arbitrator directed the Land Acquisition Officer And Sub-Divisional Officer to pass the amended/modified compensation award in compliance with the conversion order of 1999.

2.5. The appellant (NHAI), being aggrieved by the order dated 13.12.2021, preferred an application under Section 34 of the Act of 1996, before the Court of learned Additional District Judge No. 5, Bikaner. The learned Additional District Judge No. 5, Bikaner, vide judgment and order dated 27.03.