The Deputy General Manager and Project Director v. the Arbitrator/District Collector
Case brief
What is this about?
Batch of 52 arbitration appeals by NHAI under S.37(1) & (2), Arbitration and Conciliation Act 1996, against the Principal District Judge, Tiruppur common judgment dated 24.11.2023 confirming the arbitrator (District Collector) award of 30% solatium and interest for land acquired for the NH-47 Chengapalli-Walayar six-laning project under the National Highways Act 1956 (S.3A, 3D, 3G notifications) and adding 12% additional compensation under S.23(1-A) of the Land Acquisition Act 1894. Madras High Court, relying on Union of India v. Tarsem Singh (2009) 9 SCC 304 and NHAI v. Tehal Singh (2021 SCC OnLine SC 3175), held that S.23(1-A) does not apply to National Highways Act acquisitions, set aside the 12% component, allowed the appeals and closed the connected CMPs; also referred to NHAI v. M. Hakeem (2021) 9 SCC 1 and Delhi Airport Metro Express v. DMRC (2022) 1 SCC 131 on the limits of interference under S.34. Keywords: solatium; interest; additional compensation; Section 3(j) National Highways Act; enhancement of compensation; modification of arbitral award; patent illegality.