Arbitration – Land Acquisition & Solatium – Highways Act- Powers of Sections 34 & 37 Courts

Judgment dated 9.6.2025 of the High Court of Bombay in Arbitration Appeal (ST) No.22121 of 2023 of Sumanbai Shantaram Bachchav  Vs.   Arbitrator & Additional Commissioner, National Highway Authority of India with connected matters. 

The Arbitrator awarded higher compensation for the acquired lands of the petitioners.  This was confirmed by Section 34 Court vide its judgment of 4.5.2023.  However, at the relevant time, neither the Original Land Acquisition Award nor the Arbitral Award considered the solatium under Section 23(2) of the LA Act since it was not applicable. In the meanwhile, the Supreme Court held that the land acquisitions between 1997 and 2015 would be treated as if Section 3J of the Highways Act did not exist.  Thus, the Solatium payable even for land acquisitions under the Highways Act during the period of 1997 and 2015. The entitlement to solatium is indisputable but it did not form part of the frame of arbitral reference. The question was whether Section 34 Court or Section 37 Court could grant solatium without modification of the Arbitral Award.