Case Note & Summary
The judgment concerns three arbitration petitions filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to resolve disputes arising out of land acquisition proceedings under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The petitioners, M/s Rural Infrastructure Development Private Limited and Shahapur Bhagar Food LLP, were owners of land acquired by the State for a public purpose. The Land Acquisition Officer passed an award determining compensation, which the petitioners disputed as inadequate. They invoked Section 64 of the 2013 Act, which provides for arbitration of disputes relating to compensation, and requested the respondent to refer the matter to arbitration. The respondent failed to act, leading to the filing of the present petitions. The respondents raised preliminary objections that the petitions were barred by limitation and that the dispute was not arbitrable under Section 64. The court analyzed the provisions of Section 64 and held that the dispute clearly falls within its ambit, as it relates to the quantum of compensation. On limitation, the court applied Article 137 of the Limitation Act, 1963, which prescribes a three-year period from the date the cause of action accrues. The court found that the cause of action arose when the respondent failed to refer the dispute to arbitration, and the petitions were filed within three years from that date. The court also rejected the objection regarding maintainability, noting that the respondent had filed a statement of defence and thus could not raise such objections. Consequently, the court allowed the petitions and appointed a sole arbitrator to adjudicate the disputes.
Headnote
A) Arbitration - Land Acquisition - Section 64 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Reference to Arbitration - Dispute regarding compensation for acquired land - Court held that the dispute falls within the ambit of Section 64 and directed appointment of arbitrator - Held that the provision mandates arbitration for disputes relating to compensation and the court cannot refuse reference (Paras 10-15). B) Limitation - Arbitration Petition - Section 11 of the Arbitration and Conciliation Act, 1996 read with Article 137 of the Limitation Act, 1963 - Application for appointment of arbitrator - Court held that the period of limitation for filing such application is three years from the date of cause of action - Held that the petitions were filed within limitation as the cause of action arose when the respondent failed to refer the dispute to arbitration (Paras 16-22). C) Arbitration - Maintainability - Section 11(6) of the Arbitration and Conciliation Act, 1996 - Objection to maintainability - Court held that objections regarding non-compliance with pre-arbitration procedures cannot be raised after filing of statement of defence - Held that the respondent having participated in the proceedings cannot later challenge maintainability (Paras 23-25).
Issue of Consideration
Whether the dispute regarding compensation under the Land Acquisition Act, 2013 is arbitrable under Section 64 of the said Act; whether the arbitration petitions are barred by limitation; and whether the petitions are maintainable in view of the alleged non-compliance with pre-arbitration procedures.
Final Decision
The court allowed the arbitration petitions and appointed a sole arbitrator to adjudicate the disputes between the parties.
Law Points
- Section 64 of the Right to Fair Compensation and Transparency in Land Acquisition
- Rehabilitation and Resettlement Act
- 2013 provides for arbitration of disputes relating to compensation
- Section 11(6) of the Arbitration and Conciliation Act
- 1996 empowers the court to appoint arbitrator when party fails to act as per agreement
- Limitation Act does not apply to applications under Section 11 of the Arbitration Act as per Section 43(1) read with Article 137 of the Limitation Act
- 1963
- Objections to maintainability of arbitration petition cannot be raised after filing of statement of defence under Section 4 of the Limitation Act.
