National Highways Authority of India Piu Jalgaon through Project… — Arbitration | Bombay HC (2026)

National Highways Authority of India Piu Jalgaon through Project… — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Delay of 40 days in filing the arbitration appeals condoned (delay condonation applications allowed and disposed of); claimants permitted to withdraw the entire 50% amount deposited by the appellant along with accrued interest, if any, subject to undertaking to refund the amount within eight weeks if the appellant succeeds in the appeals.

Issue for consideration

Whether the delay of 40 days caused in filing the arbitration appeals should be condoned. +1 more

Court's answer

The delay of 40 days caused in filing the arbitration appeals is condoned, and the delay condonation applications are allowed and disposed of.

Ratio / Principle

Since 50% of the differential amount has been deposited and the applications under section 34 are already dismissed, the respondents/claimants have the arbitral award as also the order under section 34 in their favour.

Key takeaways

The claimants are permitted to withdraw the entire 50% amount deposited by the appellant, along with accrued interest thereon, if any.ratio¶¶45
The withdrawal is subject to an undertaking that in the event the appellant succeeds in the appeals, the claimants shall refund the amount within eight weeks thereafter.ratio¶¶45

Detailed headnote1 paragraphs

Bombay High Court (Aurangabad Bench), Arun R. Pedneker, J. (per court), 12 March 2026 — Nine civil applications in three arbitration appeals (ARBAST/7401/2025, ARBAST/7426/2025, ARBAST/7391/2025) arising from enhancement of NHAI land-acquisition compensation from Rs. 805/- to Rs. 2900/- per sq. mtr.: (i) delay of 40 days in filing the arbitration appeals condoned; (ii) although NHAI opposed withdrawal of the deposited 50% differential amount by placing reliance on a Supreme Court decision (arising out of S.L.P. (Civil) No. 27289/2024, decided 20.2.2025) observing that the High Court should have secured the amount by directing the claimants to furnish a bank guarantee, the Court permitted the claimants to withdraw the entire 50% deposit with accrued interest — since the deposit stood made and the applications under section 34 were already dismissed, giving the claimants the arbitral award and the section 34 order in their favour — subject to the claimants' undertaking to refund the amount within eight weeks if the appellant succeeds in the appeals.

2026:BHC-AUG:10828

CA 7302/25 & Ors.

1

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD

958 CIVIL APPLICATION NO. 7302 OF 2025 IN ARBAST/7401/2025

WITH

CIVIL APPLICATION NO. 1732 OF 2026 IN ARBAST/7401/2025 WITH

CIVIL APPLICATION NO. 7303 OF 2025 IN ARBAST/7401/2025

NATIONAL HIGHWAYS AUTHORITY OF INDIA PIU JALGAON THROUGH PROJECT DIRECTOR SHIVAJI V PAWAR

VERSUS

YASHWANT CHAVDAS WARKE AND OTHERS

Advocate for Applicant : Mr. Manorkar Deepak Suresh Advocate for Respondents 1 & 2 : Mr. A.B. Kale

Advocate for Respondents 3 : Mr. R.R. Bangar

962 CIVIL APPLICATION NO. 1730 OF 2026 IN ARBAST/7426/2025

WITH

CIVIL APPLICATION NO. 7287 OF 2025 IN ARBAST/7426/2025

WITH

CIVIL APPLICATION NO. 7288 OF 2025 IN ARBAST/7426/2025

HIND SEVA MANDAL STAFF CO OP CREDIT SOCIETY LTD ITS CHAIRMAN SUNIL NATPAL SHARMA

VERSUS

NATIONAL HIGHWAYS AUTHORITY OF INDIA PROJECT IMPLEMENTATION UNIT BY SHIVAJI VASANT PAWAR

Advocate for Applicant : Mr. Ajeet Babanrao Kale Advocate for appellant : Mr. D.S. Manorkar

Advocate for Respondent/UOI : Mr.R.R. Bangar

963 CIVIL APPLICATION NO. 1731 OF 2026 IN ARBAST/7391/2025

WITH

CIVIL APPLICATION NO. 7298 OF 2025 IN ARBAST/7391/2025 WITH

CIVIL APPLICATION NO. 7300 OF 2025 IN ARBAST/7391/2025

KIRAN MAHESHDATTA TIWARI

VERSUS

NATIONAL HIGHWAYS AUTHORITY OF INDIA PROJECT

CA 7302/25 & Ors.

2

IMPLEMENTATION UNIT SHIVAJI VASANT PAWAR

Advocate for Applicant : Mr. Ajeet Babanrao Kale Advocate for appellant : Mr. D.S. Manorkar Advocate for Respondent/UOI : Mr.R.R. Bangar

CORAM : ARUN R. PEDNEKER, J. Dated : March 12, 2026

PER COURT :-

Heard.

The Competent authority for Land Acquisition (CALA) has passed award and granted compensation at the rate of Rs. 805/- per Sq. Mtr. Thereafter, in applications under section 3(G)(5) of the Arbitration and Conciliation Act, the compensation is enhanced to Rs. 2900/- per Sq.

Mtrs. by the Collector/Arbitrator. The said arbitral awards were challenged before the learned Principal District Judge which came to be dismissed and against the said dismissal, present arbitration appeals are filed.

In the appeals, there is delay of 40 days caused in filing the arbitration appeals. The stay has been already granted by this Court subject to deposit of 50% of differential amount and the said amount has been also deposited in this Court. In view of the above, the delay of 40 days caused filing the appeals is condoned. The delay condonation applications are allowed and disposed of.

CA 7302/25 & Ors.

3

Thereafter present applications for withdrawal of amount are filed which are opposed by the learned counsel appearing for National Highways Authority of India by placing reliance on the judgment and order of the Hon’ble Supreme Court in Civil Appeals arising out of S.L.P. (Civil) No. 27289/2024 and other connected matters decided on 20.2.2025, in which Hon’ble Supreme Court has observed that the High Court should have secured the amount by directing the respondentsclaimants to furnish a bank guarantee for the said amount to the satisfaction of the Court.

In the instant cases, 50% differential amount has been deposited, so also the applications under section 34 are already dismissed. As such, the respondents/claimants have arbitral award so also order under section 34 in their favour.

Considering the same, the claimants are permitted to withdraw entire 50% amount deposited by the appellant along with accrued interest thereon, if any, subject to undertaking that in the event the appellant succeeds in appeals, the claimants shall refund the amount within eight weeks thereafter.

With the above directions, the applications filed for withdrawal of amount are allowed and disposed of.

( ARUN R. PEDNEKER, J. )

ssc/