Legal

Delay – Section 34 Petition – Award – National Highways Act

 

 

The Arbitral Tribunal, a government officer designed, conducts the statutory arbitration under Section 3G(5) of the National Highways Act and reviewed the original compensation under the NH Act vide Award dated 20.3.2018.   This was challenged on 4.2.2020 in Section 34 Petition in the District Court.

HELD that the usage of the words “but not thereafter” in Section 34(3) of the ACA would lead to the necessary exclusion of discretion available under Section 5 of the Limitation Act, 1963, to the Court, regardless of the cause.

The entitlement to demonstrate sufficiency of cause for delayed challenge to the arbitral award has been ring-fenced to an outer limit of 30 days beyond stipulated limitation period of three months.   This is essential feature.

After the limitation period and on a conjoint reading of Sections 34(3) & 5 of the ACA, the Court has no jurisdiction to condone the delay in filing a challenge to the arbitral award.

Whether NHAI is a third party to the statutory arbitration under Section 3G(5) of the NH Act.   The District Judge treated NHAI as a third party and condoned the delay indicating that it was not aware of the arbitral award.   The legislation administered by NHAI creates deemed arbitration agreement.  The role of NHAI lies at the heart of the land acquisition.  The Competent Authority determines the compensation and its decision is challenged in the arbitration.   The Competent Authority has no role without NHAI.  The Competent Authority is represented in arbitral proceedings and represents the interests of NHAI in defending its original award. The knowledge of NHAI constitutes knowledge of NHAI.   Therefore, it is an unknowing third party suddenly ambushed with the knowledge of change in the valuation in the arbitration proceedings.  If NHAI is treated as a third party, it would undermine the very right to challenge award – the very locus of the party to challenge award would come into question.

Judgment dated 10.7.2025 of the High Court of Bombay in Interim Application NO.2609 of 2021 in Arbitration Appeal No.20 of 2022 of Supriya Raju Mehta   Vs.  National Highway Authority of India and others

 

Leave a Reply

Your email address will not be published. Required fields are marked *

I HAVE READ THE DISCLAIMER AND AGREE TO IT.

User Acknowledgement

By proceeding further and clicking on the "AGREE" button herein below, I acknowledge that I of my own accord wish to know more about LegalDeli for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from LegalDeli or any of its members to create an Attorney-Client relationship through this knowledge site. I further acknowledge having read and understood the Disclaimer below.

Disclaimer
About: This knowledge-site (www.LegalDeli.in) is owned and operated by LegalDeli (“NDA”), and is a resource for your informational and educational purposes only.

No Warranty: NDA does not warrant that any content or information contained on this knowledge-site is accurate, correct, complete or up-to-date, and hereby disclaims any and all liability to any person for any actual or threatened loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or otherwise. NDA assumes no liability for the interpretation and/or use of the content and/or information contained on this knowledge-site, nor does it offer any warranty of any kind, either expressed or implied in relation to such content or information.

Third-Party Links: NDA does not intend that links / URLs contained on this knowledge-site re-directing users to third party websites be considered as referrals to, endorsements of, or affiliations with any such third party website operators. NDA is not responsible for, and makes no representations or warranties, express or implied, about the content or information contained on such third party websites to which links may be provided on this knowledge-site.

No Legal Advice: By clicking ‘I agree’ and proceeding further, you acknowledge, represent and undertake that you on your own accord wish to know more about NDA, its capabilities and research content and information contained on the knowledge-site, for your own knowledge and personal use. The content and information contained on this knowledge-site should not be construed as nor relied upon as legal advice. You as a reader or recipient of content or information contained in this knowledge-site should not act, nor refrain from acting, based upon any or all of such content or information, but should always seek the advice of competent legal counsel licensed to practice the relevant law in the appropriate jurisdiction.

No Attorney-Client Relationship: This knowledge-site is not intended to be and you should not consider the content or information contained therein to be an advertisement, solicitation, inducement or invitation for an Attorney-Client relationship. Transmission, receipt or use of this knowledge-site, including content and information contained therein, does not constitute nor create an Attorney-Client relationship between NDA and you.