Baba John vs The Competent Authority on 7 August, 2026

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    Madras High Court

    Baba John vs The Competent Authority on 7 August, 2026

                                                                       W.A.Nos.1064 of 2026 etc.
    
                                      IN THE HIGH COURT OF JUDICATURE AT MADRAS
    
                                              RESERVED ON    : 21.07.2026
                                             DELIVERED ON : 07.08.2026
                                                       CORAM :
    
                                 THE HONOURABLE MR. SUSHRUT ARVIND DHARMADHIKARI,
                                                   CHIEF JUSTICE
                                                        AND
                                      THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN
    
                                             W.A.Nos.1064 and 1170 of 2026
    
                         W.A.No.1064 of 2026:
                         1. Baba John
                         S/o.Abdul Subhan,
                         35, Muslim Street, Samudram Village,
                         Nallavanpalayam. Tiruvannamalai.
    
                         2. Junaidabanu
                         S/o.Babajan,
                         35, Muslim St, Samudram Village,
                         Tiruvannamalai.
    
                         3. Jerina Begum
                         S/o. Abdul Samad,
                         60B, Adam Gardan, Samudram Village,
                         Tiruvannamalai.
    
                         4. R.Mani
                         S/o. Ramachandran,
                         170/685, Senthu Kinaru Street,
                         Samudram Village, Tiruvannamalai.
    
                         5. R.Shekhar
                         S/o. Ramachandran,
                         241, Mariyamman Koil Street,
                         Samudram Village, Tiruvannamalai.
                                                                      Appellant(s)
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                                                                          W.A.Nos.1064 of 2026 etc.
    
    
    
                                                                Vs
    
                         1. The Competent Authority
                            The Special District Revenue Officer (LA),
                            National Highways 66, Vellore.
    
                         2. The Arbitrator/District Collector
                            Tiruvannamalai.
    
                         3. The Project Director
                            National Highways Authority of India,
                            Project Implementation Unit, No.26,
                            First Floor, VGP Nagar, Villupuram.
    
                                                                         Respondent(s)
    
                         W.A.No.1170 of 2026
    
                         1. Mustik Basha
                         S/o.Mohammed Sahib,
                         No.25,Adham Garden, Samudram,
                         Nallavanpalayam, Tiruvannamalai.
    
                         2.Murthy
                         S/o.Annamalai,
                         54 A, Tiruvmanjana Gopura Street,
                         Tiruvannamalai.
    
                         3.Yamuna,
                         W/o.Sekar,
                         No.89,Aanaikatti Street,
                         Tiruvannamalai.
    
                                                                         Appellant(s)
                                                                Vs
    
                         1. The Competent Authority
                            The Special District Revenue Officer (LA),
                            National Highways 66, Vellore.
    
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                                                                               W.A.Nos.1064 of 2026 etc.
    
                         2. The Arbitrator/District Collector
                            Tiruvannamalai.
    
                         3. The Project Director
                            National Highways Authority of India,
                            Project Implementation Unit, No.26,
                            First Floor, VGP Nagar, Villupuram.
    
                                                                             Respondent(s)
    
                         PRAYER: Appeals filed under Clause 15 of the Letters Patent to set
                         aside the separate orders passed by the learned Single Judge even
                         dated 24.11.2025 in W.P.Nos.45624 of 2025 and 45627 of 2025.
    
    
                                          For Appellant(s)   Mr.S.Vijaya Kumar
                                          in both appeals:   Senior Counsel
                                                             for Mr. A.V.Balusamy
    
                                          For Respondent(s) Mr.Mohammed Fayaz Ali
                                          in both appeals:  Government Pleader for R1 and R2
    
                                                             Mr.Nithyaesh Natraj for R3
    
    
                                                       COMMON JUDGMENT
    
    

    THE CHIEF JUSTICE

    These two writ appeals stem from the orders passed by the

    SPONSORED

    learned Single Judge on 24.11.2025, dismissing the writ petitions

    seeking a directive compelling the Arbitrator/District Collector to

    entertain their representations for awarding 30% solatium and 15%

    interest on land acquisition compensation under the National Highways

    Act, 1956 [for brevity, “the Act”].

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    2.1. The facts in a nutshell are that the lands belonging to the

    appellants were acquired for constructing a bypass road on National

    Highway 66 (Tindivanam–Krishnagiri). The original awards passed by

    the first respondent/Competent Authority fixed compensation without

    solatium and statutory interest.

    2.2. Aggrieved by the low valuation and denial of solatium and

    interest, the appellants initiated arbitration. The Arbitrator granted

    20% enhancement, while explicitly excluding solatium and interest.

    2.3. The appellants challenged these awards under Section 34 of

    the Arbitration and Conciliation Act, 1996. The Principal District Court,

    Tiruvannamalai, set aside the awards and remanded the matters to the

    Arbitrator for fresh evaluation, with a specific direction to allow

    solatium and interest as per the decision of the Hon’ble Supreme Court

    in Union of India v. Tarsem Singh1 [Tarsem Singh-I].

    2.4. Upon remand, the Arbitrator passed revised awards on

    15.6.2021 and 31.5.2021, respectively, enhancing the compensation

    1
    (2019) 9 SCC 304
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    market value to twice the original award. However, the Arbitrator again

    omitted the relief of solatium and interest.

    2.5. The National Highways Authority of India (NHAI) challenged

    these revised awards under Section 34 of the Arbitration and

    Conciliation Act, but the District Court dismissed NHAI’s petitions,

    confirming the Arbitrator’s awards. Even though the appellants did not

    challenge the revised awards, seeking solatium and interest, however,

    the appellants on 25.09.2025 submitted representations directly to the

    Arbitrator seeking 30% solatium and 15% interest, relying on a

    decision of the Hon’ble Supreme Court in Tarsem Singh-I (supra).

    Receiving no response, they filed writ petitions seeking a mandamus to

    enforce these representations.

    2.6. The learned Single Judge dismissed the petitions, holding

    that once arbitral awards achieve finality without being challenged

    under Section 34 of the Arbitration and Conciliation Act, they cannot

    be resurrected or modified through representations or writ

    proceedings. Hence, the present appeals.

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    3.1. Learned Senior Counsel for the appellants submitted that

    the learned Single Judge erred in declining to direct the Arbitrator to

    consider the representations dated 25.9.2025, for granting 30%

    solatium and 15% interest.

    3.2. It is further submitted that, in a subsequent order passed in

    Kuppan v. Competent Authority2, the learned Single Judge granted

    relief to similarly situated landowners by directing the disposal of their

    representations.

    3.3. He finally submitted that the landowners ought not to be

    deprived of statutory benefits merely on procedural grounds.

    4.1. Learned Government Pleader appearing on behalf of

    respondent Nos.1 and 2 submitted that the claim of the appellants is

    legally unviable under the settled principles of law laid down by the

    Hon’ble Supreme Court in the latest decision National Highways

    Authority of India v. Tarsem Singh3 [Tarsem Singh-III].

    2
    Order dated 3.7.2026 in W.P.No.25107 of 2026

    3
    2026 SCC OnLine SC 481
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    4.2. He further submitted that a Division Bench of the Madurai

    Bench of this Court in National Highways Authority of India v. V.R.Ravi

    and others4 explicitly overturned orders granting unrestricted

    directions by the learned Single Judge, where claims suffered from

    inordinate delay.

    5.1. Learned counsel for the third respondent submitted that the

    inter se dispute between the parties achieved finality when the

    Arbitrator passed revised awards on 15.6.2021 and 31.5.2021,

    respectively. The appellants never challenged these awards under

    Section 34 of the Arbitration and Conciliation Act.

    5.2. It is further submitted that once an arbitral award is

    pronounced, the Arbitrator becomes functus officio. There exists no

    statutory power or jurisdiction under the Arbitration and Conciliation

    Act, 1996 or the National Highways Act, 1956, for an Arbitrator to

    entertain post-award representations.

    5.3. Referring to paragraphs 12 and 14 of the Hon’ble Supreme

    Court decision in Tarsem Singh-III (supra), learned counsel submitted

    4
    Judgment dated 25.6.2025 in W.A.(MD) No.2569 of 2024
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    that stale claims that have already attained finality cannot be

    reopened.

    6. Having heard learned counsel appearing on both sides and

    perused the material on record, including the precedents cited, we

    proceed to decide the appeals.

    7. The constitutional position regarding solatium and interest on

    land acquired under the National Highways Act, 1956, has evolved

    through three crucial rulings of the Hon’ble Supreme Court:

    (i) In Tarsem Singh-I (supra), the Hon’ble Supreme Court

    declared Section 3J of the National Highways Act, 1956

    unconstitutional to the extent it denied solatium and interest to

    landowners. It extended parity with Section 23(1-A), Section 23(2)

    and Section 28 of the Land Acquisition Act, 1894. [However, reference

    to Section 23(1-A) was later deleted in National Highway Authority of

    India v. Tehal Singh (2021 SCC OnLine SC 3175)].

    (ii) In Union of India v. Tarsem Singh5 [Tarsem Singh–II], the

    Hon’ble Supreme Court rejected the argument that Tarsem Singh–I

    5
    2025 SCC OnLine SC 235
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    (supra) should operate only prospectively, establishing that solatium

    and interest are integral to the right to just compensation under Article

    300-A of the Constitution.

    (iii) In Tarsem Singh–III (supra), the Hon’ble Supreme Court

    addressed the scope of delayed and stale claims and issued the

    following directions:

    “14. Considering the facts and circumstances
    explained in the instant proceedings along with the
    various submissions placed on record and with a view
    to balancing the equities regarding delay and the
    entitlements of the landowners, we issue the following
    directions:

    (i) All landowners whose claims re: the
    quantum and/or components of compensation
    for their lands acquired under the NH Act were
    alive on or after 28.03.2008, i.e., they were
    pending before one of the prescribed fora, shall
    be entitled to seek addition of ‘interest’,
    ‘solatium’, and ‘interest on the solatium’ to their
    compensation claim;

    (ii) In the cases where compensation claims
    are alive on the aforesaid date, but the
    landowner has claimed ‘interest’, ‘solatium’, and
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    ‘interest on solatium’ after 28.03.2008, no
    interest on both components shall be payable for
    the period of delay. Such landowner shall be
    entitled to ‘interest’ and ‘interest on solatium’
    only from the date on which such claims were
    raised; and

    (iii) If the claims of the landowners stood
    concluded prior to 28.03.2008, with no further
    appeal, Writ Petition, Special Leave Petition, etc.,
    then such landowners are not entitled to seek
    reopening, review, or modification of the said
    decision
    for the purpose of claiming ‘solatium’ or
    ‘interest’.”
    [emphasis supplied]

    8. In effect, the Hon’ble Supreme Court laid down the following

    binding directives regarding finality and delay:

    (i) Where the claims of landowners stood concluded prior to

    28.03.2008 without further appeal, writ petition, or Special Leave

    Petition etc., landowners are not entitled to seek reopening or review

    to claim solatium or interest; and

    (ii) only where compensation claims remained “alive”

    (i.e., pending before a prescribed statutory forum) on or after

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    28.03.2008, the landowners are entitled to seek addition of solatium

    and interest.

    9. In the present case, the acquisition of lands for the formation

    of a bypass road on National Highway 66 (Tindivanam-Krishnagiri)

    itself was made in the year 2010, in which the competent authority

    passed an award on 31.08.2012. In the arbitration petition preferred

    before the second respondent seeking enhanced compensation along

    with solatium and interest, an award dated 15.06.2021 came to be

    passed without awarding solatium and interest.

    10. In the challenge made to the award under Section 34 of the

    Arbitration and Conciliation Act, 1996, before the Principal District

    Court, Tiruvannamalai, in Arbitration O.P.No.4 of 2008, the following

    order was passed on 10.11.2020:

    “In the result, this Arbitration Original Petition is Allowed.
    The Award passed in Arbitration No.184/2012, 185/2012,
    187/2012, 224/2012 & 225/2012 dated 14.03.2016 by the
    Arbitrator/District Collector, Tiruvannamalai is setaside and the
    matter is remanded back to Arbitrator/District Collector,
    Tiruvannamalai to fix the correct market value for the property
    by analysing the petitioners’ property with that of Revenue
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    Register and sale deed fixed by the Petitioners’ Counsel before
    this Court has to be taken in to consideration and in a proper
    manner value has to be determined for each and every one of
    the properties and 30% Solatium also to be fixed as per
    Hon’ble Supreme court ruling CJD 2019 SC 1097. Further
    the matter is to be decided in accordance with law and also it is
    ordered that this matter should be disposed of within three
    months from the date of receipt of this order and Court Fee is
    ordered to be refunded to the Petitioners.”

    11. However, in the subsequent award dated 31.05.2021 passed

    after remand, the second respondent/Arbitrator, even though

    enhanced the compensation, ignored to award solatium and interest,

    as directed above, in line with the decision of the Hon’ble Supreme

    Court in Tarsem Singh-I (supra). As referred to earlier, even though

    the appellants did not challenge the revised award dated 31.05.2021,

    they submitted a representation dated 25.09.2025 directly to the

    second respondent/Arbitrator, seeking payment of 30% solatium and

    15% interest as held in Tarsem Singh-I (supra).

    12. The main plank of contention on the side of the respondents

    is that, since the appellants have not challenged the award dated

    31.05.2021, they are not entitled to seek solatium and interest and
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    the Arbitrator has become functus officio.

    13. We are not in agreement with the said contention, in view of

    the specific decision of the Hon’ble Supreme Court in Tarsem Singh-III

    (supra).

    14. A learned single Judge of this Court, in the case of Etti

    Gounder and Others v. The District Collector, Namakkal and

    Others6, dealt with a similar plea that the Arbitrator has become

    functus officio and held that since power to decide solatium and

    interest fall outside the jurisdiction of the authority, they will not

    become functus officio. The relevant extract reads thus:

    “26. The NHAI contends that neither the CALA nor the
    Statutory Arbitrator can entertain any representation of the
    petitioners for payment of solatium and interest since on passing
    their respective awards, these authorities have become functus
    officio. It is already demonstrated that neither of these authorities
    have any power to decide on the solatium and interest, nor have
    they decided the issue before. So far as the present plea goes, an
    authority will become functus officio only as concerning matters
    which fall within the domain of their authority to decide. Since,
    solatium and interest fall outside their jurisdiction, they will not

    6
    (2021) 6 CTC 618
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    become functus officio if they are now required to perform anything
    in view of the Tarsem Singh case.

    27. The issue can be viewed from another angle. If Sec.3-J
    were not there in the statute book, the CALA would have done
    exactly that which their counterparts under the Land Acquisition Act,
    1894
    , would be under a compulsion to do: to add the solatium and
    interest to the market value of the property acquired. When the
    constitutionality of Sec.3-J was challenged from Lalita case of the
    Karnataka High Court (from where it all started) to Tarsem Singh
    case, notwithstanding the Chakrapani ratio or the Sunita Mehra ratio
    of the Hon’ble Supreme Court delivered in the interregnum, the
    NHAI could play an excuse-card to deny payment of solatium and
    interest.
    Not any longer after the Tarsem Singh case. If the Courts
    are the guardian of the Fundamental Rights of the citizens, and if the
    compensation (including solatium and interest) as a concept are
    integral to the right to property and hence right to life, a duty is
    upon the Courts not to reduce themselves to Constitutional
    irrelevancy in letting the NHAI bask under the comfort of its core-
    misconception.

    28. Alternatively, even if the contention of the NHAI that the
    authorities to whom the representations have been addressed have
    become functus officio is presumed valid, let it make the payment
    directly to the petitioners. After all, computing the solatium and
    interest payable to each of the petitioners only requires a calculator,
    and passing any supplementary award by the CALA for the purpose
    is only procedural. This argument necessarily fails.”

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    15. The above order has not been stayed or reversed till date.

    Placing reliance on this order, several writ petitions have been disposed

    of awarding solatium and interest, including a case in N.Rajasekaran

    and Another v. Union of India and Others7 and the same has not

    been challenged. In yet another decision in the case of

    T.Ramamurthy (died) v. Union of India8, the learned single Judge,

    by a common order, set aside the order of the Project Director and

    directed the authorities to pay solatium together with applicable

    interest.

    16. In the appeals preferred by the Project Director, NHAI in

    W.A.Nos.668 and 681 of 2026, this Court, by judgment dated

    29.04.2026, disposed of the appeals holding that in the light of the

    order passed by the Hon’ble Supreme Court in National Highways

    Authority of India v. Tarsem Singh and Others, [Review Petition (Civil)

    No.2528 of 2025, dated 25.03.2026], nothing survives for

    adjudication. Adopting the same reasoning, this Court, by judgment

    dated 22.07.2026, disposed of another appeal preferred by the Project

    7
    Order dated 11.12.2020 in W.P.No.18089 of 2020

    8
    Order dated 15.09.2025 in W.P.No.18750 of 2018 etc. batch
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    Officer, NHAI, Salem v. M.Poomalai and Another in W.A.No.2105 of

    2026.

    17. While the Hon’ble Supreme Court in Tarsem Singh-III

    (supra) after considering the finality and delay, authoritatively held

    that the claim of landowners which were concluded prior to

    28.03.2008, without any further appeal, writ petition, special leave

    petition, etc., are not entitled to claim solatium and interest, it was

    made clear that in cases where compensation claims were pending

    before any prescribed forum on or after that cut-off date i.e.,

    28.03.2008, they shall be entitled to solatium and interest. Further,

    the Hon’ble Supreme Court also made it clear that even if a claim was

    alive but the demand for solatium and interest was made after

    28.03.2008, no interest shall be payable for the period of delay and

    landowner will be eligible for interest only from the date when the

    claim was made.

    18. The lands were acquired in the year 2008 and the award was

    passed in the year 2012. The learned Principal District Judge,

    Tiruvannamalai, in the order passed on 10.11.2020, in a petition filed

    under under Section 34 of the Arbitration and Conciliation Act, 1996,
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    directed to pay solatium and interest in accordance with the Hon’ble

    Supreme Court’s judgment in Tarsem Singh-I (supra). The revised

    arbitral award was issued only on 31.05.2021, where the solatium and

    interest were not awarded. Since the claim of compensation was

    admittedly pending after the cut-off date fixed by the Hon’ble

    Supreme Court, the appellants claim for solatium and interest cannot

    be rejected solely on the ground that the award was not put to

    challenge.

    19. The payment of solatium and interest is applicable to the

    land acquired by the NHAI as the claim clearly falls within the

    directions set out by the Hon’ble Supreme Court in Tarsem Singh-III

    (supra), and the appellants can directly make a claim to the competent

    authority, which shall calculate 30% solatium with applicable interest

    and settle the benefits. In such circumstances, the rejection of the

    appellants claim solely on the ground that the award was not

    challenged cannot be sustained, in view of the decision of the Hon’ble

    Supreme Court in Tarsem Singh-III (supra). Therefore, the order

    passed in the writ petition requires interference and is, accordingly, set

    aside.

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    20. In view of the above, the writ appeals stand allowed and

    appellants are permitted to make a representation before the

    competent authority/first respondent and the Project Director, NHAI/

    third respondent, within a period of four weeks from today, seeking

    payment of solatium and applicable interest as per the award. On

    receipt of such representation, the first and third respondents are

    directed to grant solatium at the rate of 30% for the land acquired,

    together with applicable interest as directed by the Hon’ble Supreme

    Court in Tarsem Singh-III (supra), within a period of six weeks

    thereafter.

    There shall be no order as to costs.

    (SUSHRUT ARVIND DHARMADHIKARI, CJ) (G.ARUL MURUGAN,J)
    07.08.2026

    Index : Yes/No
    Neutral Citation : Yes/No
    sasi/gya

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    To:

    1. The Competent Authority
    The Special District Revenue Officer (LA),
    National Highways 66, Vellore.

    2. The Arbitrator/District Collector
    Tiruvannamalai.

    3. The Project Director
    National Highways Authority of India,
    Project Implementation Unit, No.26,
    First Floor, VGP Nagar, Villupuram.

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    THE HON’BLE CHIEF JUSTICE
    AND
    G.ARUL MURUGAN,J.

    sasi/gya

    W.A.Nos.1064 and 1170 of 2026

    07.08.2026

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