IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 20.09.2021

CORAM:

THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE

C.M.A.No.506 of 2013

and M.P.No.1 of 2013

1.Union of India,

Rep. by its Chief Secretary,

Government of Union Territory of Puducherry,

Puducherry.

2.Secretary - Works,

Secretariat, Public Works Department,

Puducherry.

3.The Superintendent Engineer Circle I,

Public Works Department, Puducherry.

4.The Executive Engineer, NH Division,

Public Works Department, Puducherry.

..Appellants/Respondents

Vs.

1. M.Nadarajan (Died)

2. N.Mangalam

3. N.Murugasamy

4. N.Balan

5. N.Selvaraj

..Respondents/Petitioners

Prayer: Civil Miscellaneous Appeal filed under Section 37(1)(b)

of the Arbitration and Conciliation Act, 1996 seeking to set

aside the orders dated 30.06.2011, made in A.O.P.No.63 of 2006,

on the file of the learned Principal District Judge, Puducherry

by allowing the above Civil Miscellaneous Appeal.

For Appellants

:

Ms.V.Usha

A.G.P. (Pondy)

For Respondents 2 to 5

:

Mr.Virumandi

for M/s.Radha Gopalan

https://hcservices.ecourts.gov.in/hcservices/

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 30.06.2011, passed by the learned Principal District

Judge, Puducherry in A.O.P.No.63 of 2006 on an application filed

by the respondents under Section 34 of the Arbitration and

Conciliation Act challenging the Arbitral Award dated

25.09.2006, passed by the Arbitrator under Section 3G of the

National Highways Act, 1956.

2. The lands of the respondents were acquired under the

National Highways Act and claim was made by the respondents

before the Arbitrator under Section 3G of the National Highways

Act, seeking for enhanced compensation. Under the Award dated

25.09.2006, compensation was determined by the Arbitrator under

Section 3G of the National Highways Act. Aggrieved by the

quantum of compensation determined by the Arbitrator, the

respondents/claimants filed an application under Section 34 of

the Arbitration and Conciliation Act before the learned

Principal District Judge, Puducherry in A.O.P.No.63 of 2006 for

re-fixation of compensation. By an order dated 30.06.2011, the

learned Principal District Judge, Puducherry modified the

arbitral award dated 25.09.2006 by granting the following

additional reliefs to the respondents:

(a) The respondents were awarded additional

compensation of 25% on escalation charges i.e.

Rs.4,54,417/- and were also awarded interest @ 12% p.a.

from 26.11.2000, till the date of payment.

(b) The learned Principal District Judge,

Puducherry also awarded in favour of the respondents

interest @ 12% p.a. on Rs.1,79,785/-, the security

deposit, from the date of commencement of arbitral

proceedings till 23.03.2006.

(c) The learned Principal District Judge,

Puducherry also awarded interest @ 12% p.a. on

Rs.1,21,750/-, quantum of additional expenses, awarded

from 26.11.2000, till the date of payment.

(d) The learned Principal District Judge,

Puducherry also awarded compensation by directing

refund of the amount spent by the respondents towards

Court fees and Advocate fees amounting to

Rs.1,65,875/-.

Aggrieved by the same, this appeal has been filed by the

https://hcservices.ecourts.gov.in/hcservices/

appellants under Section 37 of the Arbitration and Conciliation

Act.

3. Heard Ms.V.Usha, learned Additional Government Pleader

(Pondy) appearing for the appellants and Mr.Virumandi, learned

counsel appearing for the respondents.

4. At the outset, the learned Additional Government Pleader

appearing for the appellants would submit that the learned

Principal District Judge, Puducherry under the impugned order

dated 30.06.2011, ought not to have modified the arbitral aw