NATIONAL HIGHWAYS AUTHORITY OF INDIA Vs. MADANGANJ HOTELS

JUDGEMENT

(1.) THIS misc. appeal under section 37 of the Arbitration & Conciliation Act, 1996 (hereinafter 'the Act of 1996') impugns the order dated 20.2.2009 passed by the Addl. District Judge No. 1, Ajmer (hereinafter 'the lower court'). Thereunder exercising its power under section 34 of the Act of 1996, the lower court has set aside the award dated 11.1.2008 and remanded the matter to the Arbitrator to decide the applicants respondents (Hereinafter 'the applicants') claim for enhancement of compensation for their land acquired under the National Highways Act, 1956 (hereinafter 'the Act of 1956').

(2.) THE facts of the case are that a notification came to be issued on 26.3.2001 under section 3A of the Act of 1956 for acquisition of certain lands belonging to respondents No. 1, 2 and 3 to an extent of 5665 sq. meters falling in Khasra Nos. 256, 7689 sq. meters of khasra No. 257/1 and 3399 sq. meters of khasra No. 257/2 aggregating to 16,753 sq. meters. An award came to be passed on 15.12.2002 for a sum of Rs. 16,89,347.76/ - as compensation for the land and Rs. 16,27,343/ - as compensation for construction aggregating to Rs. 33,16,690.76/ - in favour of the applicants. Dissatisfied with the quantum of compensation, the applicants filed an application No. 32/2003 on 1.10.2003 before the Collector/Arbitrator, Ajmer under the provisions of Section 3G (5) the Act of 1956 seeking enhancement of compensation. A reply of denial was filed by the appellant National Highways Authority of India (hereinafter 'the NHAI') on 22.11.2003. In the first instance the Arbitrator exercising his powers under section 3G (7) of the Act of 1956 enhanced the amount of compensation to a sum of Rs. 1,42,15,365/ - under his order dated 24.1.2004. The said award was challenged in a Public Interest Litigation by an organisation in the name and style of the Youth Welfare Society in SB Civil Writ petition No. 2884/2004. NHAI as defendants therein supported the case set up by the Youth Welfare Society and stated that the enhancement of the compensation under the Collector's order dated 24.1.2004 be set aside. In -fact NHAI itself had challenged the order of enhancement dated 24.1.2004 in a separate writ petition which was registered as SBCW P. No. 3701/2004. In the course of proceedings in SB Civil Writ Petition No. 2884/2004 in view of the similarity of challenge in SBCW P. No. 3701/2004, the PIL was transferred to the learned Single Judge and tagged with NHAI's writ petition. The learned Single Judge vide his judgment dated 13.6.2006 quashed the award dated 24.1.2004 and remanded the matter to the Collector/Arbitrator to decide afresh - with some scathing observations about the misuse of power. The operative portion of the order is reproduced as under:

(3.) A reading of the order dated 23.8.2007 passed by the Hon'ble Division Bench clearly indicates that the applicants were allowed to produce additional evidence in support of their claim for enhancement of compensation and the NHAI had a right of rebuttal thereto. A time frame for decision by the Arbitrator on the application for enhancement subsequent to the remand by the learned Single Judge under the order dated 13.6.2006 was also fixed.