National Highway Authority Of India, … vs Saluba Pandu Sangle And Another on 18 March, 2026

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    Bombay High Court

    National Highway Authority Of India, … vs Saluba Pandu Sangle And Another on 18 March, 2026

    2026:BHC-AUG:11874
    
                              IN THE JUDICATURE OF HIGH COURT AT BOMBAY
                                         BENCH AT AURANGABAD
    
                                    ARBITRATION APPEAL NO. 10 OF 2026
    
                     National Highway Authority Of India,
                     Project Implementation Unit-Chh.Sambhajinagar,
                     Through its Project Director - Amrish Mankar,  ...Appellant
    
                     VERSUS
    
               1.    Suresh Pandharinath Matre,
               2.    The Competent Authority Land
                     Acquisition National Highway No.211
                     and Sub Divisional Officer, Aurangabad.           ...Respondents
                     ...
                     Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
                     Somnath
                     Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
                     Advocate for Respondent No.2- Competent Authority : Mr. Bondar Uttam
                     Bajirao
                     ...
                                                      AND
                                    ARBITRATION APPEAL NO. 11 OF 2026
    
                     National Highway Authority Of India,
                     Project Implementation Unit-Chh.Sambhajinagar,
                     Through its Project Director - Amrish Mankar,  ...Appellant
    
    
                     VERSUS
    
               1.    Madinabi Faiyaz Khan,
               2.    The Competent Authority Land
                     Acquisition National Highway No.211
                     and Sub Divisional Officer, Aurangabad.           ...Respondents
                     ...
                     Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
                     Somnath
                     Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
                     Advocate for Respondent No.2- Competent Authority : Mr. R. B. Bagul
                     ...
                                                      AND
                                    ARBITRATION APPEAL NO. 12 OF 2026
    
                     National Highway Authority Of India,
                     Project Implementation Unit-Chh.Sambhajinagar,
                     Through its Project Director - Amrish Mankar,  ...Appellant
    
    
                     VERSUS
    
               1.    Gaurav Ambadas Matre,
               2.    The Competent Authority Land
                     Acquisition National Highway No.211
                     and Sub Divisional Officer, Aurangabad.         ...Respondents
                     ...
                     Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
                     Somnath
    
    
                                                      Page 1 of 51
                                                                     Arb Appeal 10-2026 and Oth
    
    
    
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. R. S. Sarvadnya
         ...
                                       AND
                      ARBITRATION APPEAL NO. 13 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Sursing Manikrao Chandanse (Died)
         Through Its L.Rs.
         1.1    Madhurabai Sursing Chandanse,
         1.2    Sanjay Sursing Chandanse,
         1.3    Sandip Sursing Chandanse,
         1.4    Shobha Dhumsing Jadhav,
         1.5    Manisha Suresh Patil,
         1.6    Jyoti Ravindra Suryawanshi,
    2.   Sahebrao Manikrao Chandanse,
    3.   Bhimrao Manikrao Chandanse,
    4.   Ramrao Manikrao Chandanse (Died)
         Through Its L.Rs.
         4.1    Kaushalyabai Ramrao Chandanse,
         4.2    Shivaji Ramrao Chandanse,
         4.3    Pratibha Raju Pawar,
         4.4    Santosh Ramrao Chandanse,
         4.5    Rupali Jivan Pawar,
         4.6    Varsha Vishal More
    
    5.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. S.W.Munde
         ...
                                         AND
                       ARBITRATION APPEAL NO. 14 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Asaram Devrao Talekar (Died)
    
                                         Page 2 of 51
                                                                     Arb Appeal 10-2026 and Oth
    
    
    
         Through L.Rs.
         a)     Shevantabai Asaram Talekar,
         b)     Jayshree Asaram Talekar,
         c)     Amol Asaram Talekar,
         d)     Atul Asaram Talekar
    2.   Kaduba Pundalik Talekar,
    3.   Nandu Kaduba Talekar,
    4.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. S. S. Deve
         ...
                                         AND
                       ARBITRATION APPEAL NO. 15 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Usha Babasaheb Guthe,
    2.   Varsha Vitthalrao Ghanwat,
    3.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr.N. T. Bhagat
         ...
                                         AND
                       ARBITRATION APPEAL NO. 16 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Fayaz Khan Ahmad Khan,
    2.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.            ...Respondents
         ...
    
                                         Page 3 of 51
                                                                     Arb Appeal 10-2026 and Oth
    
    
    
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. N. T. Tribhuwan
         ...
                                         AND
                      ARBITRATION APPEAL NO. 17 OF 2026
    
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Radhakisan Pandharinath Matre,
    2.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr.N. U. Yadav.
         ...
                                         AND
                       ARBITRATION APPEAL NO. 18 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Sursing Manikrao Chandanse (Died)
         Through L.Rs.
         1.1    Madhurabai Sursing Chandanse,
         1.2    Sanjay Sursing Chandanse,
         1.3    Sandip Sursing Chandanse,
         1.4    Shobha Dhumsing Jadhav,
         1.5    Manisha Suresh Patil,
         1.6    Jyoti Ravindra Suryawanshi,
    2.   Sahebrao Manikrao Chandanse,
    3.   Bhimrao Manikrao Chandanse,
    4.   Ramrao Manikrao Chandanse (Died)
         Through L.Rs.
         4.1    Kaushalyabai Ramrao Chandanse,
         4.2    Shivaji Ramrao Chandanse,
         4.3    Pratibha Raju Pawar,
         4.4    Santosh Ramrao Chandanse,
    
                                         Page 4 of 51
                                                                     Arb Appeal 10-2026 and Oth
    
    
    
         4.5    Rupali Jivan Pawar,
         4.6    Varsha Vishal More,
    5.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr.Krushna Salunke
         ...
                                         AND
                       ARBITRATION APPEAL NO. 19 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Usha Babashaeb Guthe,
    2.   Varsha Vitthalrao Ghanwat.
    3.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr.Nitin Salunke
         ...
                                         AND
                       ARBITRATION APPEAL NO. 20 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Shaikh Hamid Shaikh Mahemood,
    2.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr.Rajesh Mewara
         ...
    
                                        Page 5 of 51
                                                                     Arb Appeal 10-2026 and Oth
    
    
    
                                    AND
                       ARBITRATION APPEAL NO. 21 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Sudam Shankarrao Talekar,
    2.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. A. S. Jadhav
         ...
                                         AND
                       ARBITRATION APPEAL NO. 22 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Shaikh Bhikan Shaikh Maheboob,
    2.   Shaikh Baba Sahikh Maheboob,
    3.   Shaikh Rasul Sahikh Maheboob,
    4.   Shaikh Rahenabi Noor Ahemad
    5.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Ms. Mayuri Kasturkar.
         ...
                                         AND
                       ARBITRATION APPEAL NO. 23 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    
                                         Page 6 of 51
                                                                     Arb Appeal 10-2026 and Oth
    
    
    
    1.   Shaikh Habib Shaikh Najimoddin,
    2.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. A. D. Kulkarni
         ...
    
                                     AND
                       ARBITRATION APPEAL NO. 24 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Sukhdev Assaram Talekar,
    2.   Bhanudas Bapurao Rajale,
    3.   Bhagwan Bapurao Rajale
    4.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. R. R. Bangar
         ...
                                         AND
                       ARBITRATION APPEAL NO. 25 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Yasin Bakshu Patel (Died)
         Through L.Rs.
         1.1    Shaikh Yousif Shaikh Yasin,
         1.2    Shaikh Younus Shaikh Yasin,
         1.3    Shaikh Aslam Shaikh Yasin,
         1.4    Shaikh Akram Shaikh Yasin,
         1.5    Shaikh Azam Shaikh Yasin,
         1.6    Jamilabai Shaikh Sardar
         1.7    Rashidabi Noor Hemaed
    
                                         Page 7 of 51
                                                                     Arb Appeal 10-2026 and Oth
    
    
    
    2.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. U. B. Bondar
         ...
                                         AND
                       ARBITRATION APPEAL NO. 26 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Saluba Pandu Sangle,
    2.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr.R. B. Bagul
         ...
                                         AND
                       ARBITRATION APPEAL NO. 27 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Hiralal Balal Bariwale (Gawali) (Died)
         Through L.Rs.
         a)      Gangubai Hiralal Bariwale,
         b)      Suresh Hiralal Bariwale,
         c)      Mukesh Hiralal Bariwale,
         d)      Nitesh Hiralal Bariwale,
         e)      Shall Hiralal Bariwale,
    2.   Ganesh Gokul Gawali,
    3.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.         ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
    
                                         Page 8 of 51
                                                                     Arb Appeal 10-2026 and Oth
    
    
    
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. R. S. Sarwadnya
         ...
                                       AND
                      ARBITRATION APPEAL NO. 28 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Shankar Pandharinath Matre,
    2.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr.S.W.Munde
         ...
                                         AND
                       ARBITRATION APPEAL NO. 29 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Shaikh Nawaz Shaikh Bhikan,
    2.   Shaikh Ishaq Shaikh Bhikan,
    3.   Shaikh Harun Shaikh Bhikan,
    4.   Shaikh Umar Shaikh Bhikan,
    5.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. A. R. Borulkar
         ...
                                         AND
                       ARBITRATION APPEAL NO. 30 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
    
                                         Page 9 of 51
                                                                     Arb Appeal 10-2026 and Oth
    
    
    
         Through its Project Director - Amrish Mankar,      ...Appellant
    
         VERSUS
    
    1.   Shaikh Nawaz Shaikh Bhikan,
    2.   Shaikh Ishak Shaikh Bhikan,
    3.   Shaikh Harun Shaikh Bhikan,
    4.   Shaikh Umar Shaikh Bhikan,
    5.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. S. S. Deve
         ...
                                         AND
                       ARBITRATION APPEAL NO. 31 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Akshay Ambadas Matre,
    2.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.           ...Respondents
         ...
         Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
         Somnath
         Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
         Advocate for Respondent No.2- Competent Authority : Mr. R. D. Sanap
         ...
                                         AND
                       ARBITRATION APPEAL NO. 32 OF 2026
    
         National Highway Authority Of India,
         Project Implementation Unit-Chh.Sambhajinagar,
         Through its Project Director - Amrish Mankar,  ...Appellant
    
         VERSUS
    
    1.   Usha Babasaheb Guthe
    2.   Ranjana Vitthalrao Mhaske
    3.   The Competent Authority Land
         Acquisition National Highway No.211
         and Sub Divisional Officer, Aurangabad.            ...Respondents
    
                                        Page 10 of 51
                                                                      Arb Appeal 10-2026 and Oth
    
    
    
          ...
          Advocate for Appellant : Mr. Sagar Varma holding for Mr. Ladda Sagar
          Somnath
          Advocate for Respondent No.1 : Mr. R. M. Patil holding for Mr. P. H. Patil
          Advocate for Respondent No.2- Competent Authority : Mr. N. T. Tribhuwan
          ...
                                            ...
                                       CORAM     : ARUN R. PEDNEKER, J.
                                      Dated             : March 18, 2026
    
    JUDGMENT :

    1. The present Arbitration Appeals are filed under Section 37 of the

    Arbitration and Conciliation Act, 1996, by the appellants- National Highway

    SPONSORED

    Authority challenging the Judgment and Order dated 16/10/2025 passed by

    the learned Principal District Judge, Aurangabad in the proceedings filed

    under Section 34 of the Arbitration and Conciliation Act, 1996. By the said

    judgment, the learned Principal District Judge, Aurangabad dismissed the

    applications filed under Section 34 of the Act and upheld the arbitral award

    passed by the learned Arbitrator.

    2. All the Arbitration Appeals involve common issues and arise out of

    acquisition of lands for the expansion of highway in village Gandheli

    wherein uniform compensation for the acquired lands are granted. Hence,

    they are taken up together for hearing and are being decided by this

    common judgment.

    3. The following questions arise for consideration of this Court in the

    present appeals:

    Page 11 of 51

    Arb Appeal 10-2026 and Oth

    a) Whether Section 29A of the Arbitration and Conciliation
    Act, 1996 applies to the arbitration proceedings conducted
    under Section 3G(5) of the National Highways Act, 1956 ? If
    so, whether the provisions of Section 29A as introduced by the
    Arbitration and Conciliation (Amendment) Act, 2015, brought
    into force with effect from 23/10/2015, apply to the present
    arbitration proceedings, or whether the amended provisions of
    Section 29A as substituted by the Arbitration and Conciliation
    (Amendment) Act, 2019
    would govern the proceedings ?

    b) If Section 29A is held to be applicable, whether the
    award passed under Section 3G(5) of the National Highways
    Act beyond the prescribed period of mandate under Section
    29A
    in absence of order of continuation of mandate of the
    arbitrator would be without jurisdiction and is liable to be set
    aside ?

    c) Whether the Arbitrator has failed to apply the
    parameters laid down under Section 26 of the Right to Fair
    Compensation and Transparency in Land Acquisition,
    Rehabilitation and Resettlement Act, 2013 while determining
    the compensation, and thereby the award passed suffers from
    patent illegality ?

    4. For the sake of convenience, the facts in Arbitration Appeal No.10 of

    2026 alone are referred to. The brief facts of the appeal are as under :

    The Central Government issued a notification under Section 3A of

    the National Highways Act, 1956 (hereinafter referred to as the “NH Act“)

    Page 12 of 51
    Arb Appeal 10-2026 and Oth

    on 18/09/2015 declaring its intention to acquire the lands specified therein

    for the purpose of widening National Highway No.211. Thereafter, the final

    declaration under Section 3D of the NH Act was published on 16/09/2016.

    5. The Competent Authority for Land Acquisition (CALA) determined

    and published an award under Section 3G(1) of the NH Act determining

    compensation of Rs.83,19,534/- @ Rs.1086/- per Square Meter for

    acquisition of an area admeasuring 3400 square meters belonging to the

    respondents/claimants. Being aggrieved by the said award, the

    respondents/ claimants invoked the provisions of Section 3G(5) of the NH

    Act seeking reference to arbitration.

    6. The learned Arbitrator thereafter passed an award enhancing the

    compensation to Rs.1,83,70,388/- @ Rs. 1742/- per Square Meter. The

    appellants challenged the said arbitral award by filing an application under

    Section 34 of the Arbitration and Conciliation Act, 1996 before the learned

    Principal District Judge on 27/06/2024. The learned Principal District Judge

    dismissed the said application by judgment dated 16/10/2025. Being

    aggrieved thereby, the present Arbitration Appeal is filed under Section 37

    of the Act.

    The Competent Authority for Land Acquisition (CALA) awarded

    different rates of compensation to the claimants depending upon the area,

    yield and nature of the land (being bayagat / jirayat/hangami-bagayat),

    Page 13 of 51
    Arb Appeal 10-2026 and Oth

    ranging from Rs.486/- to Rs.1,500/- per square metre. However, the

    Arbitrator awarded compensation at a uniform rate of Rs.1,742/- per square

    metre in all the matters.

    7. The primary contention raised on behalf of the appellants is that the

    arbitral award has been passed after a period of nearly six years from the

    date of the Arbitrator entering upon the reference and beyond the mandate

    of Section 29A and therefore the award suffers from patent illegality.

    8. The learned Counsel Mr. Sagar Varma holding for Mr. Sagar

    Ladda for appellants submit that Section 29A(1), as introduced by the

    Amendment Act of 2015 with effect from 23/10/2015, provides that the

    arbitral tribunal shall make an award within a period of twelve months from

    the date it enters upon the reference. The said provision was further

    amended by the Amendment Act of 2019 with effect from 30/08/2019,

    whereby the period of twelve months is to be reckoned from the date of

    completion of pleadings under sub-section (4) of Section 23 of the Act.

    9. The learned Counsel for the appellants thus submits that in 19

    matters out of 23 before this Hon’ble Court, the applications under section

    3-G (5) were preferred on 11/04/2018, and thus the provision of 29A as

    introduced by Amendment Act Act 3 of 2016 w.e.f. 23.10.2015, would be

    applicable to the impugned arbitration.

    10. The learned Counsel further submits that as per Section 29A(1) of

    Page 14 of 51
    Arb Appeal 10-2026 and Oth

    the Act (as it stood prior to the 2019 amendment), the Ld. Arbitrator was

    mandated to pass the award within a period of twelve months from the

    date of entering upon the reference. This period could be extended by the

    express consent of the parties for a further period not exceeding six

    months. The award in the present case was passed on 12.01.2024, which is

    nearly five years and nine months after the commencement of the

    proceedings, and well beyond the statutory maximum period of twelve

    months. The fact that no extension was ever sought by either of the parties

    section 29A (3) cannot now be invoked to claim the grace period of 6

    months. Even otherwise, the impugned award is in vehement violation of

    section 29A of the Act of 1996.

    11. It is further submitted by the learned Counsel for the appellants that

    no application was ever moved before the Court under Section 29A(3) of

    the Act for extension of the Ld. Arbitrator’s mandate. Consequently, the

    mandate of the Ld. Arbitrator stood terminated automatically upon the

    expiry of the statutory period as per section 29A (4) of the Act of 1996. An

    award passed by a tribunal whose mandate has been terminated is a

    nullity, coram non judice, and patently illegal.

    12. The learned Counsel for the appellant further submits that merely

    because the parties to the arbitration proceeded with the arbitration

    without any express objection does not mean that the consent for

    Page 15 of 51
    Arb Appeal 10-2026 and Oth

    extension of arbitration was impliedly given by the parties and for this

    purpose relies upon the Judgment of the Hon’ble High Court of Bombay in

    Mahaveer Realities & Ors. Versus Shirish J. Shah (Arbitration

    Petition No. 125 of 2023).

    13. The learned Counsel for the appellants further relied upon the

    judgments of the High Court of Himachal Pradesh in Rattan Chand and

    another vs. National Highways Authority of India and another

    (Arbitration Appeal No.9 of 2023 decided on 13/06/2025) and Hari

    Singh vs. National Highways Authority of India (Arbitration Appeal

    No.39 of 2024 decided on 29/05/2024). It is submitted that the Special

    Leave Petition filed against the judgment in Rattan Chand has been

    dismissed by the Hon’ble Supreme Court. The learned Counsel has also

    placed reliance upon the judgments in Tata Sons Pvt. Ltd. (formerly

    Tata Sons Ltd.) vs. Siva Industries and Holdings Ltd. and others

    and National Highways Authority of India vs. Sayedabad Tea

    Company Ltd. and others, reported in (2020) 15 SCC 161.

    14. Apart from the aforesaid legal submissions of applicability of Section

    29A, the learned Counsel for the appellants submits that the Arbitrator has

    erred in determining the compensation. The learned Counsel submits that

    the compensation ought to have been determined in accordance with the

    principles contained in Section 26 of the Right to Fair Compensation and

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    Arb Appeal 10-2026 and Oth

    Transparency in Land Acquisition, Rehabilitation and Resettlement Act,

    2013. It is submitted that the Competent Authority for Land Acquisition had

    classified the lands under four different categories and had granted

    compensation at different rates depending upon the area, yield and nature

    of the land (being bayagat/ jirayat/ hangami-bagayat). However, the

    Arbitrator granted uniform compensation without maintaining such

    classification. According to the appellants, the Arbitrator has therefore

    acted beyond the scope of his authority and the award is patently illegal

    and liable to be set aside.

    15. The learned Counsel for the appellants submits that Section 26 of

    the Right to Fair Compensation and Transparency in Land Acquisition,

    Rehabilitation and Resettlement Act, 2013, the competent authority or

    arbitrator as the case may be has to compare similar type of lands with

    each other for the purposes of determining market value. That certain

    provisions of the Act of 2013 have been made applicable to the NH Act for

    the purposes of determining compensation as provided under section 105

    of the Act of 2013. Accordingly, the Central Government published

    comprehensive guidelines thereby making certain provisions of the Act of

    2013 applicable to the acquisitions under the NH Act.

    16. The learned Counsel for appellants submits that the Ld. Arbitrator

    committed a patent illegality in determining the market value of the

    acquired land. The Ld. Arbitrator erroneously re-appreciated the evidence

    Page 17 of 51
    Arb Appeal 10-2026 and Oth

    and re-calculated the market value by averaging the highest 50% of sale

    deeds, some of which were rightly discarded by the Competent Authority

    for showing abnormally high prices. The Ld. Arbitrator, in doing so, acted as

    a court of appeal over the decision of the Competent Authority, which is

    impermissible in law.

    17. The learned Counsel for appellants submits that the Ld. Arbitrator

    also committed a grave error of law by applying a multiplier of 2.00,

    contrary to the applicable government notifications which prescribe a

    multiplier of 1.50 for lands falling under a regional plan. The finding of the

    Ld. Arbitrator that the land is purely rural is contrary to the record and his

    own observation in the award wherein it is observed that the acquired

    lands fall beside/near the city Airport and accordingly, cannot be

    considered to be rural but however, the claimants have claimed there lands

    to be rural lands for the purposes of reaping a higher multiplication factor

    of 2. On the other hand, by claiming their lands not to be rural, they are

    also seeking higher market value.

    18. The learned Counsel for appellants submits that the Ld. District

    Court failed to exercise the jurisdiction vested in him under Section 34 of

    the Act and failed to appreciate that the award was in conflict with the

    public policy of India and suffered from patent illegality apparent on the

    face of the record.

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    Arb Appeal 10-2026 and Oth

    19. Per contra, the learned Counsel Mr. R. M. Patil holding for Mr. P. H.

    Patil appearing for the respondents/ claimants submits that the arbitration

    proceedings under Section 3G(5) of the National Highways Act are

    statutory proceedings initiated under a special enactment for

    determination of compensation. The learned Counsel submits that the

    provisions of the Arbitration and Conciliation Act, 1996 would apply only to

    the limited extent as indicated under Section 3G(6) of the NH Act and

    would stand excluded where the NH Act contains specific provisions to the

    contrary.

    20. It is further submitted by the learned Counsel for respondents/

    claimants that the provisions of Section 29A of the Arbitration and

    Conciliation Act relating to the time limit for making the award and

    extension of the mandate of the Arbitrator would not apply to arbitrations

    conducted under the NH Act.

    21. The learned Counsel for the respondents/ claimants further submits

    that, the Central Government appoints an office of Collector or other office

    as Arbitral tribunal under Section 3 G (5) by issuing general notifications for

    different regions. In the present cases also, the office of the Collector of

    Aurangabad was appointed as the arbitral tribunal.

    22. It is further submitted by the learned Counsel for respondents/

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    Arb Appeal 10-2026 and Oth

    claimants that even on facts the arbitral tribunal has properly exercised

    jurisdiction. During the pendency of the proceedings, the arbitrators

    changed on account of transfers of the incumbent officers and the matter

    was heard by different Arbitrators at different stages. In such

    circumstances, it cannot be said that a single Arbitrator continued with the

    proceedings beyond the prescribed period.

    23. It is further submitted that the arbitral proceedings continued

    without any objection being raised by the appellants and it is only at the

    stage of challenging the award under Section 34 of the Arbitration Act, that

    the objection regarding the mandate of the Arbitrator is sought to be

    raised.

    24. The learned Counsel further submits that the provisions of Section

    29A, as amended in the year 2019, would not render the award invalid in

    the present case. According to him, an application seeking extension of the

    mandate of the Arbitrator had been filed and the same was pending

    consideration.

    25. In support of the said contention, reliance is placed upon the

    judgment of the Hon’ble Supreme Court in Sayedabad (Supra).

    26. It is further submitted by the learned Counsel for respondents/

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    Arb Appeal 10-2026 and Oth

    claimants that the determination of compensation by the Arbitrator is

    based upon the material available on record and does not call for

    interference in exercise of appellate jurisdiction under Section 37 of the

    Arbitration and Conciliation Act.

    27. On merits, the learned Counsel for the respondents/ claimants

    submits that the Arbitrator has acted well within his jurisdiction. It is

    submitted that the lands in question are situated in the vicinity of

    Aurangabad city and within approximately twenty kilometers from the High

    Court Bench. The lands were acquired for expansion of the National

    Highway and therefore possessed substantial potential value. According to

    the respondents, in such circumstances the lands could not have been

    rigidly segregated into different grades as done by the Competent

    Authority. The Arbitrator therefore rightly granted uniform compensation

    considering the potential value of the lands.

    28. The learned Counsel for the respondents/ claimants submits that the

    learned Arbitrator has considered the sale deeds produced before him

    while determining the compensation. It is submitted that the appellants did

    not lead any independent evidence before the Arbitrator and merely relied

    upon the determination made by the Competent Authority for Land

    Acquisition. According to the respondents, the Competent Authority had

    discarded certain higher sale instances without proper justification, and the

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    Arb Appeal 10-2026 and Oth

    Arbitrator, upon appreciation of the material placed on record, rightly took

    into consideration the relevant sale transactions while determining the

    compensation.

    29. In support of the said submission, reliance is placed upon the

    judgment of the Hon’ble Supreme Court in Madhya Pradesh Road

    Development Corporation vs. Vincent Daniel and others (Civil

    Appeal No.3998 of 2024 decided on 27/03/2025). The learned Counsel

    also relies upon the judgments in Union of India vs. Susaka Private

    Limited and others, (2018) 2 SCC 182, Girnar Traders (3) vs. State

    of Maharashtra and others, (2011) 3 SCC 1, and Project Director,

    National Highways Authority of India vs. Saraswatibai

    Chandrakant Shinde and others, 2022 SCC OnLine SC 1115.

    30. Having considered the rival submissions, the first question that

    arises for consideration is whether the provisions of Section 29A of the

    Arbitration and Conciliation Act, 1996 relating to the time limit for making

    an arbitral award and extension of the mandate of the arbitral tribunal by

    court would apply to arbitrations conducted under Section 3G(5) of the

    National Highways Act, 1956.

    Relevant provisions of the NH Act and Arbitration and Conciliation

    Act required to deal with above question are quoted below :

    Section 3G (1), (5), (6) of the National Highways Act :

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    Arb Appeal 10-2026 and Oth

    3G. Determination of amount payable as compensation.–

    (1) Where any land is acquired under this Act, there shall be paid an

    amount which shall be determined by an order of the competent authority.

    (2) ……

          (3)    ......
    
          (4)    ......
    
          (5)    If the amount determined by the competent authority under sub-
    
    

    section (1) or sub-section (2) is not acceptable to either of the parties, the

    amount shall, on an application by either of the parties, be determined by

    the arbitrator to be appointed by the Central Government–

    (6) Subject to the provisions of this Act, the provisions of the

    Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to every

    arbitration under this Act.

    The provisions of Section 29A were introduced into the Arbitration

    Act with effect from 23 October 2015 by Act 3 of 2016. Section 29A was

    substituted by Act 33 of 2019 with effect from 30 August 2019. The

    provisions of Section 29A as originally inserted and as they stand after the

    amendment of 2019 are tabulated below :

    SECTION 29-A PRE AND POST 2019 AMENDMENT

    Post 2015 Amendment w.e.f. Post 2019 Amendment w.e.f.

    23.10.2015 30.08.2019

    29A. (1) The award shall be made within 29A. (1) The award in matters other than
    a period of twelve months from the date international commercial arbitration
    the arbitral tribunal enters upon the shall be made by the arbitral tribunal
    reference. within a period of twelve months from
    the date of completion of pleadings

    Page 23 of 51
    Arb Appeal 10-2026 and Oth

    Explanation. – For the purpose of this under sub-section (4) of section 23:

    sub-section, an arbitral tribunal shall be
    deemed to have entered upon the Provided that the award in the matter of
    reference on the date on which the international commercial arbitration may
    arbitrator or all the arbitrators, as the be made as expeditiously as possible
    case may be, have received notice, in and endeavor may be made to dispose
    writing, of their appointment. of the matter within a period of twelve
    months from the date of completion of
    pleadings under sub-section (4) of
    section 23.

    (2) If the award is made within a period (2) If the award is made within a period
    of six months from the date the arbitral of six months from the date of the
    tribunal enters upon the reference, the arbitral tribunal enters upon the
    arbitral tribunal shall be entitled to reference, the arbitral tribunal shall be
    receive such amount of additional fees entitled to receive such amount of
    as the parties may agree. additional fees as the parties may agree.

    (3) The parties may, by consent, (3) The parties may, by consent, extend
    extend the period specified in sub- the period specified in sub-section (1)
    section (1) for making award for further for making award for further period not
    period not exceeding six months. exceeding six months.

    (4) If the award is not made within the (4) If the award is not made within the
    period specified in sub-section (1) or the period specified in sub-section (1) or the
    extended period specified under sub- extended period specified under sub-

    section (3), the mandate of the section (3), the mandate of the
    arbitrator(s) shall terminate unless the arbitrator(s) shall terminate unless the
    Court has, either prior to or after the Court has, either prior to or after the
    expiry of the period so specified, expiry of the period so specified,
    extended the period. extended the period.

    Provided that while extending the Provided that while extending the period
    period under this sub-section, if the under this sub-section, if the Court finds
    Court finds that the proceedings have that the proceedings have been delayed
    been delayed for the reasons for the reasons attributable to the
    attributable to the arbitral tribunal, arbitral tribunal, then, it may order
    then, it may order reduction of fees of reduction of fees of arbitrator(s) by not
    arbitrator(s) by not exceeding five per exceeding five per cent for each month
    cent for each month of such delay. of such delay.

    Provided further that where an
    application under sub-section (5) is
    pending, the mandate of the arbitrator
    shall continue till the disposal of the said
    application :

    Provided also that the arbitrator shall be
    given an opportunity of being heard

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    Arb Appeal 10-2026 and Oth

    before the fees is reduced.

    (5) The extension of period referred to (5) The extension of period referred to
    in sub-section (4) may be on the in sub-section (4) may be on the
    application of any of the parties and application of any of the parties and
    may be granted only for sufficient cause may be granted only for sufficient cause
    and on such terms and conditions as and on such terms and conditions as
    maybe imposed by the Court. may be imposed by the Court.

    (6) While extending the period referred (6) While extending the period referred
    to in sub-section (4), it shall be open to to in sub-section (4), it shall be open to
    the Court to substitute one or all of the the Court to substitute one or all of the
    arbitrators and if one or all of the arbitrators and if one or all of the
    arbitrators are substituted, the arbitral arbitrators are substituted, the arbitral
    proceedings shall continue from the proceedings shall continue from the
    stage already reached and on the basis stage already reached and on the basis
    of the evidence and material already on of the evidence and material already on
    record, and the arbitrator(s) appointed record, and the arbitrator(s) appointed
    under this section shall be deemed to under this section shall be deemed to
    have received the said evidence and have received the said evidence and
    material. material.

    (7) In the event of arbitrator(s) being (7) In the event of arbitrator(s) being
    appointed under this section, the appointed under this section,t he arbitral
    arbitral tribunal thus reconstituted shall tribunal thus reconstituted shall be
    be deemed to be in continuation of the deemed to be in continuation of the
    previously appointed arbitral tribunal. previously appointed arbitral tribunal.

    (8) It shall be open to the Court to (8) It shall be open to the Court to
    impose actual or exemplary costs upon impose actual or exemplary costs upon
    any of the parties under this section. any of the parties under this section.

    (9) An application filed under (9) An application filed under sub-
    subsection (5) shall be disposed of by section (5) shall be disposed of by the
    the Court s expeditiously as possible Court as expeditiously as possible and
    and endeavor shall be made to dispose endeavor shall be made to dispose of
    of the matter within a period of sixty the matter within a period of sixty days
    days from the date of service of notice from the date of service of notice on the
    on the opposite party. opposite party.

    (emphasis supplied) (emphasis supplied)

    31. Section 3G(6) of the National Highways Act provides that the

    provisions of the Arbitration and Conciliation Act, 1996 shall apply to

    arbitration proceedings under the said Act. However, the applicability of

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    Arb Appeal 10-2026 and Oth

    the Arbitration and Conciliation Act is subject to the limitation that such

    provisions shall apply only to the extent they are not inconsistent with the

    provisions of the National Highways Act. Both the National Highways Act

    and the Arbitration and Conciliation Act, 1996 are Central enactments.

    Nevertheless, the application of the Arbitration Act, 1996 is by way of

    reference and only to the extent provided under Section 3G(6).

    32. When legislation is applied by reference, subsequent amendments to

    the referred statute would also apply to the parent legislation subject to

    certain limitation which I will discuss later. Section 3G(6) of NH Act also

    limits the applicability of the Arbitration and Conciliation Act, 1996 to the

    extent that its provisions are not inconsistent with the National Highways

    Act.

    33. Since Section 29A of Arbitration Act is introduced by amendment to

    Arbitration Act, 1996 reference can be made to the judgment of the

    Constitution Bench (5 Judges) of the Hon’ble Supreme Court in Girnar

    Traders v. State of Maharashtra, reported in (2011) 3 SCC 1. While

    considering the interplay between two statutes, namely the Maharashtra

    Regional and Town Planning Act (State Legislation) and the Land Acquisition

    Act (Central Legislation), the Supreme Court observed that where

    legislation adopts provisions of another statute by reference, subsequent

    amendments to the earlier statute are not automatically incorporated into

    Page 26 of 51
    Arb Appeal 10-2026 and Oth

    the later statute if such incorporation would disturb the scheme of the later

    enactment. The Constitution Bench further observed that there may be

    instances where the amended provisions of the earlier law, if treated as

    incorporated in the principal legislation, may become unworkable or

    inconsistent with the scheme of the latter Act. In such circumstances, it

    would be inappropriate to interpret the amended law as being incorporated

    irrespective of its consequences on the implementation of the principal Act.

    34. Paragraphs No.148, 149, 150 of the Judgment in Girnar Traders

    (Supra) are relevant reads as under :

    “148. ……..it cannot be stated as an absolute proposition of law
    that wherever legislation by reference exists, subsequent
    amendments to the earlier law shall stand implanted into the later
    law without analyzing the impact of such incorporation on the object
    and effectuality of the later law. The later law being the principal law,
    its object, legislative intent and effective implementation shall
    always be of paramount consideration while determining the
    compatibility of the amended prior law with the later law as on
    relevant date.

    149. It will be useful to apply the ‘test of intention’ and ‘test of
    unworkability’ with their respective contextual reference while
    determining the applicability of either of the doctrines and for that
    matter, even on the applicability of the amended law to the later
    law. Impact analysis on the workability of the respective legislation
    shall be a relevant consideration for resolving such an issue. There
    can be instances where the amended law, if applied and treated as
    incorporated in the principal legislation, may be apparently
    unadjustable to the scheme of that legislation. In that circumstance,

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    Arb Appeal 10-2026 and Oth

    it will be unfair to interpret the amended law as deemed to be
    incorporated, irrespective of its consequences on the
    implementation of the provisions of the principal Act.

    150. It is emphasized that the object of the principal Act should not
    be permitted to be defeated on the basis of either of the doctrines
    above referred. Hence, there is need for carving out exceptions to
    the rule of legislation by reference as well. Examples where such
    reference would be impermissible are as follows :

    a) Legislation by reference should not result in defeating
    the object and purpose of the later Act;

    b) Where the amendments to the earlier law are read into
    the subsequent law as a result of legislation by reference, if
    the result is irresolvable conflict between their provisions or it
    results in destroying the essence and purpose of the principal
    Act (later law).

    The above exceptions to the doctrine are not exhaustive but are
    merely indicative. The possibility of other exceptions to this doctrine
    cannot be ruled out as it is difficult for this Court to state all such
    exceptions with precision. Furthermore, defining such exceptions
    with exactitude will not even aid the ends of justice. We have already
    noticed that all the learned counsel appearing for the parties are ad
    idem that it would be necessary to carve out such exceptions to
    apply the doctrine appropriately, advantageously and objectively.”

    35. The Supreme Court in Girnar Traders (Supra) emphasized that the

    object and purpose of the principal Act should not be defeated on the basis

    of the doctrines of legislation by reference or legislation by incorporation.

    Therefore, exceptions to the rule of legislation by reference must be

    recognized. Illustratively, such reference would be impermissible in the

    Page 28 of 51
    Arb Appeal 10-2026 and Oth

    following situations :

    a) Legislation by reference should not result in defeating the object and
    purpose of the later Act;

    b) Where the amendments to the earlier law are read into the
    subsequent law as a result of legislation by reference, if the result is
    irresolvable conflict between their provisions or it results in destroying the
    essence and purpose of the principal Act (later law).

    Bearing the above principle in mind as laid in Girnar Trader (Supra)

    and the limitation imposed by Section 3G(6) of NH Act, I now proceeds to

    examine whether Section 29A of the Arbitration and Conciliation Act is

    consistent with the provisions of NH Act.

    36. The Hon’ble Supreme Court, in Mohan Lal Fatehpuria v. M/s

    Bharat Textiles (MANU/SC/1655/2025), has observed that once the

    mandate of an arbitrator expires, continuation of such arbitrator is

    impermissible and Section 29A(6) empowers and obligates the Court to

    substitute the arbitrator. However, the Supreme Court has also observed

    that arbitral tribunal is not always statutory in nature, thereby recognizing

    that statutory arbitration may stand on a different footing for the purpose

    of applicability of Section 29A.

    In Paragraph No.13 of Mohan Lal Fatehpuria (Supra), the Hon’ble

    Supreme Court has observed as under :

    “13. An arbitrator or an Arbitral Tribunal is not always statutory. It

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    Arb Appeal 10-2026 and Oth

    is, ordinarily, a forum chosen by the parties for resolution of their
    disputes. An Arbitral Tribunal with the consent of the parties decides
    their disputes. In the instant case, as stated supra, the mandate of
    the sole Arbitrator had terminated on 28.02.2023. When mandate of
    arbitrator has expired, his continuation is impermissible. Section
    29A(6) empowers and obligates the Court to substitute the
    Arbitrator. In so far as submission of the respondents, that, since the
    petition filed under Sections 14 and 15 of the Act was rejected on
    24.01.2022 by the High Court is concerned, suffice it to say that the
    Act provides separate remedies in the circumstances mentioned in
    Sections 14, 15 and 29A of the Act. In any case, on 24.01.2022, the
    mandate of the sole arbitrator was not terminated. Therefore, the
    order dated 24.01.2022 does not have any impact on the decision of
    the petition under Section 29A of the Act filed by the appellants. The
    substitution of a sole arbitrator is warranted, when his mandate
    ceases to exist, to effectuate the object of the Act, which mandates
    expeditious resolution of the dispute. In view of the statutory
    scheme and undisputed factual position, we are satisfied that the
    case warranted the exercise of jurisdiction under Section 29A(6) of
    the Act. The High Court erred in granting an extension when the
    mandate of the sole arbitrator had ceased to exist.”

    37. Section 29A was introduced by the 2015 Amendment prescribing a

    time limit for completion of arbitral proceedings, which was subsequently

    modified by the 2019 Amendment prescribing the time limit from the date

    of completion of pleadings, whereas in earlier 2015 amendment the time

    limit was computed from the date of notice of appointment.

    38. Section 29A also empowers the Court to substitute the arbitrator.

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    Arb Appeal 10-2026 and Oth

    However, under Section 3G(5) of the National Highways Act, only the

    Central Government is empowered to appoint the arbitrator. Section 29A(4)

    of the Arbitration Act provides that if the arbitral award is not made within

    the prescribed time, the mandate of the Arbitrator shall terminate unless

    extended by the Court and the Court may also reduce the fees of the

    arbitrator. Section 29(A)(6) of 1996 Act, provides that he Court may

    substitute the arbitrator. This provision directly conflicts with the scheme

    of the National Highways Act, wherein the power to appoint an arbitrator is

    vested exclusively in the Central Government under Section 3G(5).

    39. The Hon’ble Supreme Court in Jagdeep Chowgule v. Sheela

    Chowgule And Ors., reported in MANU/SC/0093/2026 has clarified

    that the expression “Court” under Section 29A refers to the principal Civil

    Court of original jurisdiction in a district as defined under the Arbitration

    and Conciliation Act. If this principle is applied to arbitration under the

    National Highways Act, it would imply that the District Court has the

    authority to extend the mandate and reduce fees (no fees are paid to

    arbitrator under NH Act) of the arbitrator appointed by the Central

    Government under Section 3G(5) and also to appoint a substitute

    arbitrator.

    40. The Central Government under Section 3 G (5) of the NH Act

    appoints institutional arbitrator by designation and it is not disputed that

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    Arb Appeal 10-2026 and Oth

    during the pendency of the arbitral proceedings two or three Arbitrators

    were changed on account of transfer of the incumbent officers. The said

    changes were not made applying provision of the Arbitration and

    Conciliation Act, 1996.

    41. In this regard, the judgment of the Hon’ble Supreme Court in

    Sayedabad (Supra) assumes significance. In the said case, the Hon’ble

    Supreme Court was considering whether an application under Section 11 of

    the Arbitration and Conciliation Act, 1996 for appointment of an Arbitrator

    would be maintainable in view of exclusive jurisdiction of the Central

    Government under Section 3G(5) of the National Highways Act, 1956, to

    appoint an Arbitrator. The Supreme Court in the case of Sayedabad

    (Supra) at paragraphs No.17, 18 and 19 has observed as under : –

    “17. In compliance of the mandate of Sections 3A to 3F of the Act,
    1956, after the land is acquired, there shall be paid an amount of
    compensation which shall be determined by an order of the
    competent authority under sub−sections (1) or (2) of Section 3G of
    the Act, 1956 and any person who is aggrieved by the amount so
    determined by the competent authority or what being determined is
    not acceptable to either of the parties, on an application being filed
    by either of the parties, has to be determined by the Arbitrator to be
    appointed by the Central Government in terms of sub−section (5) of
    Section 3G of the Act, 1956.

    18. After analysing the scheme, it can be assumed that the
    legislature intended the Act, 1956 to act as a complete code in itself
    for the purpose of acquisition until culmination including
    disbursement and for settlement of disputes and this conclusion is
    further strengthened in view of Section 3-J of the Act which

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    Arb Appeal 10-2026 and Oth

    eliminates the application of the Land Acquisition Act, 1894, to an
    acquisition under the Act, 1956.

    19. It is settled principles of law that when the special law sets out a
    self−contained code, the application of general law would impliedly
    be excluded. In the instant case, the scheme of Act, 1956 being a
    special law enacted for the purpose and for appointment of an
    arbitrator by the Central Government under Section 3G(5) of Act,
    1956 and sub−section (6) of Section 3G itself clarifies that subject to
    the provisions of the Act 1956, the provisions of Act 1996 shall apply
    to every arbitration obviously to the extent where the Act 1956 is
    silent, the Arbitrator may take recourse in adjudicating the dispute
    invoking the provisions of Act, 1996 for the limited purpose. But so
    far as the appointment of an Arbitrator is concerned, the power
    being exclusively vested with the Central Government as envisaged
    under sub−section (5) of Section 3G of Act 1956, Section 11 of the
    Act 1996 has no application.”

    42. The Hon’ble Supreme Court in Sayedabad (Supra) observed that

    the National Highways Act, 1956 is a special legislation and a

    comprehensive code enacted by the Parliament for acquisition of land for

    national highways, determination of compensation, and its disbursement.

    The Act provides a complete mechanism for determination of

    compensation and adjudication of disputes arising therefrom.

    43. The Court further observed that if the amount determined by the

    Competent Authority under sub-section (1) or sub-section (2) of Section 3G

    is not acceptable to either of the parties, the amount shall, upon an

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    Arb Appeal 10-2026 and Oth

    application by either party, be determined by an Arbitrator to be appointed

    by the Central Government under Section 3G(5) of the Act.

    44. The Supreme Court held that since the power to appoint an

    Arbitrator is specifically vested with the Central Government under Section

    3G(5) of the Act of 1956, the provisions of Section 11 of the Arbitration and

    Conciliation Act, 1996 would have no application. The Court further

    observed that if the Central Government fails to appoint an Arbitrator

    within a reasonable time, it would be open for the aggrieved party to seek

    appropriate relief by filing a writ petition under Article 226 of the

    Constitution of India or by adopting other appropriate legal remedies, but

    the remedy under Section 11 of the Arbitration and Conciliation Act would

    not be available for appointment of an Arbitrator.

    45. The Hon’ble Supreme Court in Sayedabad (Supra) has further

    observed that when a special statute sets out a self-contained code, the

    application of the general law stands impliedly excluded. In the present

    context, the scheme of the National Highways Act, 1956 being a special

    law provides a complete mechanism for acquisition of land and

    determination of compensation, including appointment of an Arbitrator by

    the Central Government under Section 3G(5) of the Act.

    46. It appears that while considering the applicability of Section 29A of

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    Arb Appeal 10-2026 and Oth

    the Arbitration and Conciliation Act, the Himachal Pradesh High Court did

    not consider the pronouncements of the Hon’ble Supreme Court in

    Sayedabad (Supra) which clearly recognize the National Highways Act,

    1956 as a special enactment providing a complete statutory mechanism for

    appointment of the Arbitrator.

    47. The Bombay High Court in the case of Zeal Infraproject Private

    Limited vs. The State of Maharashtra ( Arbitration petition No.162 of

    2024, decided on 22/04/2025), without referring to the judgment in

    Sayedabad (supra), substituted the Arbitrator under Section 15 of the

    Arbitration and Conciliation Act, 1996. The said order was challenged by

    the National Highways Authority of India before the Supreme Court of India

    in SLP (Civil) No. 17737 of 2025. By order dated 29/07/2025, the Special

    Leave Petition was disposed of. However, the disposal was on the peculiar

    facts of the case, and the questions of law arising for consideration were

    expressly kept open. It is to be noticed that in the proceedings before the

    Supreme Court of India, the National Highways Authority of India had

    specifically objected to the application of Section 15 of the Arbitration and

    Conciliation Act, 1996 to arbitration proceedings conducted under the

    National Highways Act, 1956. The relevant observations of the

    Supreme Court in above noted order dated 29/07/2025 are reproduced

    below :

    “5. According to Mr. Mehta, the following questions of law fall for the

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    consideration of this Court : –

    “1. The National Highways Act, 1956 in general and
    Section 3G i particular being a self-contained Code, is it not
    necessary that the Arbitration is conducted by an arbitrator
    appointed by the Centra Government under Section 3G(5) of
    the National Highways Act 1956 ?

    2. In view of the fact that Section 3G(6) which starts with
    the expression “subject to the provisions of the Act”, will the
    National Highways Act, 1956 not override the provisions of
    Arbitration and Conciliation Act, 1996 ?

    3. Even if, in arguendo, it is accepted that Section 11
    read with Section 15 of the Arbitration and Conciliation Act,
    1996 applies to an arbitration under National Highways Act,
    1956
    , would either the appointment of arbitrator under
    section 11 of the Act substitution / replacement under Section
    15(2) be strictly in accordance with Section 3G(6) of the
    National Highways Act, 1956 i.e. by an officer appointed by
    the Central Government and not any other arbitrator chosen
    by the Court exercising powers either under Section 11 or 15
    of the Code particularly in view of Section 15(2) of the Act of
    1996 ?

    6. In the peculiar facts and circumstances of this case, we would
    not like to interfere with the impugned order passed by the High
    Court appointing an Arbitrator.

    7. However, the questions of law, referred to above, are kept
    open for being considered in any other appropriate matter.”

    It is significant to note that in the National Highways Authority of

    India had specifically objected to the application of Section 15 of the

    Arbitration and Conciliation Act, 1996 to arbitration conducted under the

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    National Highways Act, 1956. It was specifically contended by the National

    Highway Authority before the Supreme Court that arbitration can be only

    be conducted by the arbitrator appointed by the Central Government under

    Section 3-G (5) and the provisions of NH Act would override the provisions

    of the Arbitration Act for Arbitration conducted under the NH Act. The

    Supreme Court, while dismissing the petition on the peculiar facts of the

    case, did not finally decide the legal issue and expressly kept the questions

    of law open for consideration in an appropriate case.

    48. The application of Section 29A of the Arbitration and Conciliation Act,

    1996 to arbitrations conducted under the National Highways Act, 1956

    would render the statutory scheme of appointment of arbitrators and

    conduct of proceedings of the arbitrator under the National Highways Act

    unworkable. Under the scheme of Section 3G(5) of the National Highways

    Act, the Central Government appoints an “officer” for a particular region to

    act as the Arbitrator. The appointment is not of a specifically named

    individual in each case rather, the designated office for that region acts as

    the Arbitraal tribunal for all matters arising within that region.

    Consequently, the arbitration is attached to the office and not to the

    individual occupying that office. When the incumbent officer is transferred

    or otherwise ceases to hold that office, the successor who assumes the

    office automatically functions as the Arbitrator in the matters pertaining to

    that Region. In such a statutory framework, the application of Section 29A

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    Arb Appeal 10-2026 and Oth

    of the Arbitration and Conciliation Act, 1996, which contemplates extension

    of the mandate of a specific arbitrator and substitution of the arbitrator by

    the Court, becomes impracticable. Since the arbitration under the National

    Highways Act is conducted by the incumbent officer holding the designated

    office, the concept of substitution of an arbitrator for the purpose of

    extension of mandate under Section 29A would be inconsistent with the

    statutory scheme. Therefore, the application of Section 29A to arbitrations

    under the National Highways Act would, per se, render the arbitration

    mechanism under the NH Act unworkable.

    49. This Court, for the reasons discussed above, holds that Section 29A

    of the Act, which provides for a time limit for the conclusion of arbitration

    proceedings , extension of mandate of Arbitrator, reduction of fees of

    arbitrator and for substitution of the arbitrator, would not apply to an

    arbitrator appointed under Section 3G(5) of the National Highways Act.

    50. If the arbitrator does not decide within reasonable period the power

    of this Court under Article 226 of the Constitution of India can be invoked

    as held in the case of Sayedabad (Supra) in cases where the arbitrators

    are not appointed by the Central Government.

    51. Coming to the merits, it is submitted that the Arbitrator has not

    applied the provisions of Section 26 of the Right to Fair Compensation and

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    Transparency in Land Acquisition, Rehabilitation and Resettlement Act,

    2013, though the said provision has been made applicable by the Central

    Government in exercise of powers under Section 105(3) of the said Act. The

    relevant provisions, namely Section 26 and Section 105 of the said Act, are

    reproduced below:

    Section 26 – Determination of market value of land by Collector

    (1) The Collector shall adopt the following criteria in assessing and
    determining the market value of the land, namely–

    (a) the market value, if any, specified under the Indian Stamp Act, 1899 for
    the registration of sale deeds in the area where the land is situated; or

    (b) the average sale price for similar type of land situated in the nearest
    village or vicinity area, ascertained from the highest fifty per cent of the
    sale deeds of the preceding three years; or

    (c) the consented amount of compensation agreed upon under sub-

    section (2) of section 2 in case of acquisition of lands for private companies
    or public-private partnership projects,

    whichever is higher.

    (2) The market value so determined shall be multiplied by a factor
    specified in the First Schedule.

    Section 105 – Provisions of this Act not to apply in certain cases or
    to apply with certain modifications

    (1) Subject to sub-section (3), the provisions of this Act shall not apply
    to the enactments relating to land acquisition specified in the Fourth
    Schedule.

    (2) The Central Government may, by notification, omit or add to any of
    the enactments specified in the Fourth Schedule.

    (3) The Central Government shall, by notification, direct that any of the

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    provisions of this Act relating to determination of compensation in
    accordance with the First Schedule and rehabilitation and resettlement
    specified in the Second and Third Schedules, being beneficial to the
    affected families, shall apply to the cases of land acquisition under the
    enactments specified in the Fourth Schedule, with such exceptions or
    modifications as may be specified.

    52. The Central Government, in exercise of powers under Section 105(3)

    of the Right to Fair Compensation and Transparency in Land Acquisition,

    Rehabilitation and Resettlement Act, 2013, issued a notification dated

    24/04/2017, whereby the provisions relating to determination of

    compensation contained in the First Schedule and rehabilitation and

    resettlement provided in the Second and Third Schedules were made

    applicable to land acquisition under the enactments specified in the Fourth

    Schedule, including the National Highways Act, 1956. Consequently, the

    principles governing determination of market value as contemplated under

    Section 26 of the said Act became applicable to acquisitions under the

    National Highways Act.

    53. The learned Counsel appearing for the National Highway Authority

    has contended that the Competent Authority categorized the lands into six

    different heads, whereas the Arbitrator treated them as one category and

    proceeded to determine the market value without applying the principle of

    Section 26 of the 2013 Act. According to the learned Counsel for National

    Highway Authority, such an approach amounts to an patent illegality in the

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    arbitral award and therefore the award is liable to be set aside.

    54. On the other hand, the learned Counsel for respondents submitted

    that the Arbitrator has in fact followed the mandate of Section 26 of the

    RFCTLARR Act, 2013. The landowners produced as many as 193 sale deeds

    from village Gandheli itself, covering proximate periods and relating to the

    very same revenue groups which were relied upon by the Competent

    Authority for Land Acquisition. However, the Competent Authority, despite

    referring to 228 sale instances in the award, arbitrarily discarded about 199

    sale deeds and confined the determination of market value to an average

    of only 15 low-value transactions, without assigning any reasons for such

    exclusion.

    55. Such selective exclusion of higher-value sale instances is contrary to

    the mandate of Section 26 and also contrary to the law laid down by the

    Hon’ble Supreme Court in Vincent Daniel (Supra). In the said decision,

    the Hon’ble Supreme Court extended the jurisprudence evolved under the

    Land Acquisition Act, 1894 in relation to determination of market value and

    clarified that, while computing the market value under the framework of

    Section 26, the precedents and principles evolved by the Supreme Court

    and the High Courts may be taken into consideration, subject to the

    modifications envisaged in Section 26, so as to ensure that no injustice is

    caused to the landowners.

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    Arb Appeal 10-2026 and Oth

    56. The Hon’ble Supreme Court further clarified in Vincent Daniel

    (Supra) that the Collector is required to record reasons for discounting or

    enhancing the market value in terms of Explanation 4 to Section 26 of the

    RFCTLARR Act, 2013. In the present case, it is submitted that the

    Competent Authority for Land Acquisition discounted as many as 199 sale

    deeds out of the 228 sale instances mentioned in the award without

    assigning any reasons for doing so.

    57. It is further submitted that the Arbitrator has taken into account all

    genuine and comparable sale instances from village Gandheli and

    determined that the said transactions support a higher market value of

    approximately Rs.2,183/- per square meter. However, in order to avoid

    discrimination and to maintain parity with earlier awards relating to

    similarly situated landowners from the same village, the Arbitrator

    moderated the operative rate to Rs.1,742/- per square meter so as to

    ensure uniformity.

    58. The learned Counsel has further submitted that once an arbitral

    award is passed, the scope of interference under Section 34 of the

    Arbitration and Conciliation Act, 1996 is extremely limited. The award

    cannot be set aside merely because another view on the merits of the

    matter is possible. Unless the award suffers from patent illegality or falls

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    within the limited grounds specified under Section 34, the Court cannot

    interfere with the award.

    59. It is further submitted that the present proceedings arise under

    Section 37 of the Arbitration and Conciliation Act, which provides an

    appellate remedy against an order passed under Section 34. The scope of

    interference under Section 37 is even more limited, and this Court would

    therefore be slow to re-appreciate the evidence or re-examine the

    computation of the market value of the acquired land on merits.

    60. The power of the ‘Court’ to interfere with arbitral award under

    Section 34 and of this Court under Section 37 of the Arbitration Act needs

    to be noted before considering the above submissions on merits of arbitral

    award. The Supreme Court in the case of PSA Sical Terminals Private

    Limited Vs. Board of Trustees of V.O. Chidambaranar Port Trust

    Tuticorn and Anr. reported in (2023) 15 SCC 781 has observed that it

    is a settled legal position, that in an application under Section 34, the court

    is not expected to act as an appellate court and reappreciate the evidence.

    The scope of interference would be limited to grounds provided under

    Section 34 of the Arbitration Act. The interference would be so warranted

    when the award is in violation of “public policy of India”, which has been

    held to mean “the fundamental policy of Indian law”. A judicial intervention

    on account of interfering on the merits of the award would not be

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    permissible. However, the principles of natural justice as contained in

    Section 18 and 34(2)(a)(iii) of the Arbitration Act would continue to be the

    grounds of challenge of an award. The ground for interference on the basis

    that the award is in conflict with justice or morality is now to be understood

    as a conflict with the “most basic notions of morality or justice”. It is only

    such arbitral awards that shock the conscience of the court, that can be set

    aside on the said ground. An award would be set aside on the ground of

    patent illegality appearing on the face of the award and as such, which

    goes to the roots of the matter. However, an illegality with regard to a mere

    erroneous application of law would not be a ground for interference.

    Equally, reappreciation of evidence would not be permissible on the ground

    of patent illegality appearing on the face of the award.

    61. The Hon’ble Supreme Court in PSA Sical Terminals Private

    Limited (supra) has further observed that a decision which is perverse,

    though would not be a ground for challenge under “public policy of India”,

    would certainly amount to a patent illegality appearing on the face of the

    award. However, a finding based on no evidence at all or an award which

    ignores vital evidence in arriving at its decision would be perverse and

    liable to be set aside on the ground of patent illegality.

    62. To appreciate the test of perversity, the Hon’ble Supreme Court in

    PSA Sical Terminals Private Limited (supra) in para 42 has further held

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    as under :-

    “42. To understand the test of perversity, it will also be appropriate to refer
    to paragraph 31 and 32 from the judgment of this Court in Associate Builders
    (supra), which read thus:

    31. The third juristic principle is that a decision which is perverse or so
    irrational that no reasonable person would have arrived at the same is
    important and requires some degree of explanation. It is settled law that
    where:

    (i) a finding is based on no evidence, or

    (ii) an Arbitral Tribunal takes into account something irrelevant to the

    decision which it arrives at; or

    (iii) ignores vital evidence in arriving at its decision,

    such decision would necessarily be perverse.

    32. A good working test of perversity is contained in two judgments. In
    Excise and Taxation Officer-cum-Assessing Authority v. Gopi Nath & Sons
    [1992 Supp (2) SCC 312], it was held:

    “7. … It is, no doubt, true that if a finding of fact is arrived at by
    ignoring or excluding relevant material or by taking into consideration
    irrelevant material or if the finding so outrageously defies logic as to
    suffer from the vice of irrationality incurring the blame of being
    perverse, then, the finding is rendered infirm in law.”

    In Kuldeep Singh v. Commr. of Police (1999) 2 SCC 10, it was held:

    “10. A broad distinction has, therefore, to be maintained between the
    decisions which are perverse and those which are not. If a decision is
    arrived at on no evidence or evidence which is thoroughly unreliable
    and no reasonable person would act upon it, the order would be
    perverse. But if there is some evidence on record which is acceptable
    and which could be relied upon, howsoever compendious it may be, the
    conclusions would not be treated as perverse and the findings would

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    not be interfered with.”

    63. The Hon’ble Supreme Court at para 14 in the case of MMTC Limited

    Vs. Vendanta Limited reported in (2019) 4 SCC 163 has further

    observed that as far as interference with an order made under Section 34,

    as per Section 37, is concerned, it cannot be disputed that such

    interference under Section 37, cannot travel beyond the restrictions laid

    down under Section 34. In other words, the Court cannot undertake an

    independent assessment of the merits of the award, and must only

    ascertain that the exercise of power by the Court under Section 34 has not

    exceeded the scope of the provision. Thus, it is evident that in case an

    arbitral award has been confirmed by the Court under Section 34 and by

    the Court in an appeal under Section 37, this Court must be extremely

    cautious and slow to disturb such concurrent findings.

    64. Perusal of the award indicates that the learned Arbitrator has

    formulated all the necessary issues. In paragraph No.20 of the award, the

    Arbitrator has framed issues with regard to determination of the market

    value as well as the applicability of the multiplication factor. However, the

    Arbitrator has specifically not granted compensation towards loss of

    easementary rights and damages as contemplated under Section 3G(7)(b),

    (c) and (d) of the National Highways Act.

    65. While determining the price of the acquired land, the Arbitrator has

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    Arb Appeal 10-2026 and Oth

    applied the provisions of Sections 26 to 30 along with Schedule I of the

    Right to Fair Compensation and Transparency in Land Acquisition,

    Rehabilitation and Resettlement Act, 2013. It is noticed that the landowners

    had produced several sale transactions from the vicinity of Gandheli

    village. The Arbitrator has considered the average of such sale transactions

    produced by the applicants, which comes to more than Rs.2183/- per

    square meter. The respondents have not produced any contrary evidence,

    and therefore the Arbitrator has proceeded to determine the market value

    on the basis of the material produced by the applicants.

    66. The Arbitrator has also observed that from the award passed by the

    Competent Authority for Land Acquisition (CALA), it appears that the

    market value fetched by certain lands as such from the sale instances

    ranged from Rs.3279/- per square meter to Rs.6989/- per square meter.

    The applicants had produced as many as 193 certified copies of sale deeds

    executed in the vicinity of village Gandheli. The Arbitrator has fairly

    excluded those sale transactions which were already excluded by the CALA

    on the ground that they related to lands situated in different Guts. After

    such exclusion, reliance was placed on 171 sale transactions out of the 193

    sale deeds.

    67. The Arbitrator has further observed that the CALA had selected only

    29 sale deeds out of the available transactions and thereafter selected only

    15 sale deeds for the purpose of calculating the average price. The

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    Arb Appeal 10-2026 and Oth

    Arbitrator has also noticed that village Gandheli is situated in the vicinity of

    the limits of Chhatrapati Sambhajinagar Municipal Corporation and that the

    surrounding area has undergone rapid transformation. Therefore, the

    Arbitrator has observed that the actual market value of the land is

    significantly higher than the value reflected in the sale deeds.

    68. It is also noticed that the CALA had awarded compensation at the

    rate of Rs.7966/- per square meter to lands situated in Deolai, which shares

    a boundary with village Gandheli. The Arbitrator has further observed that

    there is no provision in law empowering the land acquisition authority to

    arbitrarily reject sale deeds without assigning cogent reasons.

    69. Considering the 171 sale transactions and applying the average rate

    based on the higher value sale deeds, the Arbitrator has determined the

    market value at Rs.1742/- per square meter for the acquired land.

    70. The Arbitrator has thus applied Section 26 of the Act of 2013 in

    determining the value of acquired land. The Hon’ble Supreme Court in

    Vincent Daniel (Supra) has considered the applicability of Section 26 of

    the Act of 2013, particularly in paragraphs 18, 19, 20, 21 and 24 which

    read as under :

    “18. Section 26 deals with the determination of the market value
    of the land by the Collector. Sub-section (1) to Section 26 consists of
    three Clauses, (a), (b) and (c), each prescribing a criterion or
    standard for assessing the market value. Clause (a) prescribes the
    consideration of the market value specified in the Stamp Act for the

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    Arb Appeal 10-2026 and Oth

    registration of agreements/sale deeds in the area where the
    concerned land is situated.

    19. Clause (b) to Section 26(1) requires the Collector to consider
    the average sale price for similar types of land situated in the
    nearest village or the nearest vicinity. This test of average sale price
    is similar to the exemplar test which is adopted and applied in cases
    of acquisition under the Land Acquisition Act, 1894, but with
    modifications in terms of Explanations 1 to 4. Computation under
    Clause (b) is in relative terms. Therefore, while drawing a
    comparison with the average price of the other lands under Clause

    (b), the Collector must consider all such factors that have been held
    to be relevant for accurate valuation by this Court. These include the
    theory of deduction, the principle of belting, and accounting for
    other advantages or disadvantages of the acquired land, in
    comparison to the lands existing in the same vicinity.

    20. Clause (c) to Section 26(1) of the Acquisition Act, 2013
    requires the Collector to take into consideration the amount of
    compensation agreed upon by the parties under Section 2(2) of the
    Acquisition Act, 2013 in cases involving the acquisition of land for
    private companies or public-private partnership projects. These
    agreements are entered into voluntarily, based upon consent terms,
    and reflect the market value as settled inter se the parties.

    21. It is important to note that the values computed in terms of
    Clauses (a), (b) and (c) of Section 26(1) of the Acquisition Act, 2013
    are not to be averaged. The highest of the values as determined by
    Clauses (a), (b) and (c), is to be treated as the market value under
    Section 26(1) of the Acquisition Act, 2013.

    24. Explanation 4 requires specific attention, as it brings the element

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    Arb Appeal 10-2026 and Oth

    of discretion while computing the market value under Section 26(1)
    to the forefront. Explanation 4 is divided into two parts. The first part
    refers to sub-section (1) to Section 26 – the higher value determined
    as per Clauses (a), (b) and (c) of Section 26(1) of the Acquisition Act,
    2013. The second part is specific to the average sale price referred
    to in Clause (b) to Section 26(1) read with Explanations 1 and 2. In
    either case, where the Collector is of the opinion that the value/price
    computed by applying these provisions is not indicative of the actual
    prevailing market value, they may discount or enhance it to arrive at
    the accurate market value.”

    71. Considering the law laid down in the aforesaid judgment, I do not

    find any error in the award of the Arbitrator in applying Section 26 of the

    Act of 2013 for determining the market value.

    72. The next issue pertains to the applicability of the multiplication

    factor of two. The Arbitrator has observed that the acquired lands situated

    in village Gandheli fall within a rural area as per the relevant notification

    dated 18/09/2015. The Arbitrator has further taken into consideration the

    amendment dated 24/04/2017, by which the multiplication factor of two

    became applicable. On both these aspects, the Arbitrator has recorded

    findings while determining the applicability of multiplication factor of two.

    73. It is also noticed that the Arbitrator has not granted compensation

    towards loss of easementary rights and damages as contemplated under

    Section 3G(7)(b), (c) and (d) of the National Highways Act.

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    Arb Appeal 10-2026 and Oth

    74. Considering the Judgment of Supreme Court in PSA Sical

    Terminals (Surpa) and MMTC Limited (Supra), it is necessary to bear in

    mind the limited scope of interference by the Court while exercising powers

    under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996. The

    Hon’ble Supreme Court has consistently held that interference with an

    arbitral award is permissible only in cases of patent illegality or where the

    award is in conflict with the fundamental policy of Indian law.

    75. In the present case, I do not find any patent illegality in the

    determination of compensation made by the Arbitrator. The Arbitrator has

    considered the relevant statutory provisions and the material placed on

    record while arriving at the value of the acquired lands.

    76. Considering the above, no ground is made out for interference with

    the arbitral award in exercise of powers under Section 37 of the Arbitration

    and Conciliation Act, 1996. Accordingly, all the appeals stand dismissed.

    ( ARUN R. PEDNEKER, J. )

    vj gawade/-.

    Page 51 of 51



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