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
