Case Note & Summary
The provided judgment text pertains to a batch of eight writ petitions filed before the High Court of Judicature at Bombay, Nagpur Bench, challenging an arbitral award under Section 3-G(5) of the National Highways Act, 1956. The petitioners, owners of land at Mouza Gawasi-Manapur, Tahsil Nagpur Rural, claimed that their land was acquired for widening of National Highway No.7 (Kamptee-Kanhan bye-pass). A notification under Section 3A(1) of the National Highways Act was published on 21/6/2010. The petitioners submitted a claim for total compensation of Rs.82,58,23,020. The Land Acquisition Officer passed a common award on 23/12/2011 granting compensation at Rs.39,00,000 per hectare for 0.60 HR of land and Rs.2,150 per square meter for 0.40 HR of non-agricultural land, totaling Rs.1,09,00,000. Aggrieved, the petitioners approached the Arbitrator under Section 3-G(5) in Arbitration Case No.62/2012. The Arbitrator by award dated 06/09/2013 partly allowed the claim and enhanced compensation to Rs.13,26,37,382. Respondent no.1 filed an application under Section 34 of the Arbitration and Conciliation Act, 1996, which the Principal District Judge allowed on 28/08/2015, setting aside the arbitral award and restoring the Land Acquisition Officer's award. In appeal under Section 37, the High Court on 26/11/2021 set aside the Section 34 judgment and restored the arbitrator's award dated 06/09/2013. The Special Leave Petition preferred by respondent no.1 was dismissed on 11/07/2022. The present writ petitions were filed on 28/07/2022 claiming enhancement of compensation. The petitioners argued that since the District Judge under Section 34 had no power to modify or substitute the award, and the arbitrator's award under Section 3-G(5) was final, they were rendered remedy-less for further enhancement, and thus writ jurisdiction under Articles 226 and 227 was invokable. The court issued Rule and heard the parties finally, reserving judgment on 10/03/2023 and pronouncing it on 31/03/2023. The provided text ends after the petitioners' submissions and does not include the court's final analysis or operative order.
Headnote
A) Constitution of India - Writ Jurisdiction - Articles 226 and 227 - Maintainability of Writ Petition for Enhancement of Compensation - National Highways Act, 1956, Sections 3A(1), 3-G(5); Arbitration and Conciliation Act, 1996, Sections 34, 37 - Petitioners challenged arbitral award under Section 3-G(5) of National Highways Act, 1956 and sought modification/enhancement; they contended that Section 34 of Arbitration and Conciliation Act, 1996 does not permit modification or substitution of the award, leaving them without effective remedy, and therefore writ jurisdiction under Articles 226 and 227 of Constitution of India was permissibly invoked. Court issued rule and heard parties finally; final decision not available in provided text. (Paras 3-4)
Issue of Consideration
Whether writ petitions under Articles 226 and 227 of the Constitution of India are maintainable to claim further enhancement of compensation when the arbitral award under Section 3-G(5) of the National Highways Act, 1956 has attained finality after Section 34 proceedings and the court under Section 34 lacks power to modify the award
Law Points
- Arbitrator's award under Section 3-G(5) of National Highways Act
- 1956 is final
- proceedings before Arbitrator governed by Arbitration and Conciliation Act
- 1996
- Section 34 of Arbitration and Conciliation Act
- 1996 does not empower court to modify or substitute award
- writ jurisdiction under Articles 226 and 227 of Constitution of India may be invoked for further enhancement when statutory remedy inadequate
Case Details
2023 LawText (BOM) (03) 139
Writ Petition No.6850 of 2022 with connected Writ Petition Nos.6837/2022, 6839/2022, 6847/2022, 6822/2022, 6833/2022, 6829/2022 and 1374/2023
Shri S.P. Bhandarkar for the petitioners; Ms T.H. Khan, Mrs. M.A. Barabde, Mr. N.R. Patil, Assistant Government Pleaders for respondents/State
M/s Omanand Industries, Nagpur (through its Partner Shri Liladhar s/o Ramjibhai Patel); M/s Om Enterprises; Karnal Singh Gurudas Singh Saini; Chandrashekar Kashinath Shiralkar; Yash Travels and Tours Private Limited; Dayanand @ Jaiprakash Baliram Sahajramani; Baliram Girdharilal Sahajramani; Late Shri Bhupinder Singh Arneja through Legal Heir Dr. Sarabjeet Kaur Arneja; Durgadevi Baliram Sahajramani
The Secretary to the Government of India, Ministry of Road Transport and Highways; The Deputy Collector (Land Acquisition - General), Nagpur; The National Highways Authority of India; The Additional Commissioner, Nagpur Division, Nagpur and the Arbitrator under Section 3-G(5) of National Highways Act, 1956
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petitions under Articles 226 and 227 of the Constitution of India challenging and seeking modification/enhancement of arbitral award passed under Section 3-G(5) of the National Highways Act, 1956 in land acquisition proceedings for widening of National Highway No.7.
Remedy Sought
Petitioners sought enhancement of compensation beyond the amount awarded by the Arbitrator on 06/09/2013, contending that they were rendered remedy-less due to limitations under Section 34 of the Arbitration and Conciliation Act, 1996.
Filing Reason
Petitioners were aggrieved by the award dated 06/09/2013 as they were not satisfied with the compensation; after the High Court restored the arbitrator's award in Section 37 appeal and the Supreme Court dismissed SLP, they filed writ petitions for further enhancement.
Previous Decisions
Land Acquisition Officer passed award dated 23/12/2011 granting total compensation of Rs.1,09,00,000; Arbitrator under Section 3-G(5) enhanced compensation to Rs.13,26,37,382 by award dated 06/09/2013; Principal District Judge allowed Section 34 application on 28/08/2015 and set aside arbitral award; High Court in Section 37 appeal on 26/11/2021 restored arbitrator's award; SLP (C) No.8136/2022 dismissed on 11/07/2022.
Issues
Whether writ petition under Articles 226 and 227 of Constitution of India is maintainable for enhancement of compensation when statutory remedy under Arbitration and Conciliation Act, 1996 does not permit modification of arbitral award
Whether Section 34 of Arbitration and Conciliation Act, 1996 empowers court to modify or substitute arbitral award passed under Section 3-G(5) of National Highways Act, 1956
Submissions/Arguments
Petitioners contended that since Section 34 of A&C Act only permits setting aside, not modification, and the arbitrator's award under Section 3-G(5) is final, they had no other remedy; hence writ jurisdiction should be invoked for further enhancement.
Judgment Excerpts
Rule. Rule made returnable forthwith. Heard finally with the consent of the learned counsel for the rival parties.
All these petitions raise the same challenge and therefore are being decided by this common judgment.
the petition challenges the award dated 06/09/2013 passed by the Arbitrator under Section 3-G (5) of the National Highways Act, 1956... and seeks its modification.
since under Section 3-G(5) of the N.H. Act, a finality was given to the award as may be passed by the Arbitrator, and the proceedings before him were to be governed by the A & C Act, the petitioners were deprived of any remedy to seek any redress for further enhancement of compensation.
Procedural History
Notification under Section 3A(1) of National Highways Act, 1956 published on 21/6/2010 for acquisition of land for widening of NH-7. Petitioners submitted claim for total compensation of Rs.82,58,23,020. Land Acquisition Officer passed common award on 23/12/2011 granting total compensation of Rs.1,09,00,000. Petitioners approached Arbitrator under Section 3-G(5) in Arbitration Case No.62/2012. Arbitrator passed award on 06/09/2013 enhancing compensation to Rs.13,26,37,382. Respondent no.1 filed application under Section 34 of Arbitration and Conciliation Act, 1996 (MCA No.54/2014); Principal District Judge allowed it on 28/08/2015, setting aside arbitral award and restoring LAO award. High Court in appeal under Section 37 set aside the Section 34 judgment on 26/11/2021 and restored arbitral award. SLP (C) No.8136/2022 preferred by respondent no.1 dismissed on 11/07/2022. Present writ petitions filed on 28/07/2022 claiming enhancement of compensation.
Acts & Sections
- National Highways Act, 1956: Section 3A(1), Section 3-G(5)
- Arbitration and Conciliation Act, 1996: Section 34, Section 37
- Constitution of India: Article 226, Article 227
