Gujarat High Court
National Highways Authority Of India vs Aapabhai Ravatbhai Varu on 20 November, 2025
Author: Sunita Agarwal
Bench: Sunita Agarwal
NEUTRAL CITATION
C/FA/464/2022 ORDER DATED: 20/11/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 464 of 2022
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2022
In R/FIRST APPEAL NO. 464 of 2022
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NATIONAL HIGHWAYS AUTHORITY OF INDIA
Versus
AAPABHAI RAVATBHAI VARU & ORS.
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Appearance:
MR. MAULIK NANAVATI FOR NANAVATI & CO.(7105) for the Appellant(s)
No. 1
MS. HETAL PATEL, ASSISTANT GOVERNMENT PLEADER for the
Defendant(s) No. 2,3
UNSERVED EXPIRED (R) for the Defendant(s) No. 1
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CORAM:HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA
AGARWAL
and
HONOURABLE MR.JUSTICE D.N.RAY
Date : 20/11/2025
ORAL ORDER
(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL)
The sole private respondent No.1 herein has passed away.
2. It is submitted by the learned advocate Mr. Maulik Nanavati
appearing for the appellant that inspite of best efforts made by the
appellant, the details of the heirs and legal representatives of the
deceased respondent could not be procured.
3. It is pointed out by the learned advocate Mr. Maulik Nanavati
appearing for the appellant that in a group of appeals, leading case
being First Appeal No. 537 of 2022, with respect to the lands
located in village Rajula, the order of the Additional District and
Sessions Judge, Rajula under Section 34 of the Arbitration and
NEUTRAL CITATION
C/FA/464/2022 ORDER DATED: 20/11/2025
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Conciliation Act, 1996 has been set aside, whereby while setting
aside the arbitral award, the Court under Section 34 had
proceeded to re-determine the market value of the acquired land by
re-appreciation of the evidence. Taking note of the fact that though
the Court under Section 34 had set aside the arbitral award by
holding that the Arbitrator has committed an error in passing the
award without considering the substantive laws and evidence
produced before him by both the sides, however, instead of
relegating the matter to the Arbitrator, it has entered into the
prohibited area of re-appreciation of evidence to re-determine of
the market value.
4. Noticing that the decision of the Court under Section 34 was
beyond its jurisdiction and the fact that the Arbitrator under
Section 3G(5) of the National Highways Act, 1956 which has
passed the impugned award, is a Statutory Arbitrator, we have held
in paragraph No. 30 as under :-
"30. We cannot leave the land holders to pursue their remedies
under Section 3G(5) by filing a fresh applications under Section
3G(5) to invoke the jurisdiction of the Statutory Arbitrator for
consideration of their claim for higher amount of compensation.
Once have reached at the conclusion that the Arbitrator namely the
Collector, Amreli committed a manifest illegality in exercise of its
jurisdiction under Section 3G(5) of the National Highways Act,
1956, while setting aside the award dated 04.06.2021 in
Arbitration Case Nos. 117 of 2019 to 124/2019, we find it fit and
proper in the interest of justice to relegate the matter to the
Collector, Amreli appointed as Arbitrator under the notification
issued by the Central Government under Section 3G(5), for fresh
consideration on merits of the claim of the applicants/land holders
after giving due notice and opportunity to all the concerned parties
including the appellant NHAI herein."
5. The matters had, thus, been relegated to the Collector
concerned appointed as Arbitrator under the notification issued by
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C/FA/464/2022 ORDER DATED: 20/11/2025
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the Central Government under Section 3G(5), for fresh
consideration on the merits of the claim of the landholders after
giving due notice and opportunity to all the concerned, including
the appellant NHAI.
6. In a subsequent decision rendered on dated 22.07.2025
passed by this Court in a group of First Appeals, leading being First
Appeal No. 197 of 2025, in the similar situation, while setting aside
the order passed under Section 34 of the Act, 1996 holding it being
without jurisdiction on account of re-appreciation of evidence for
redetermination of market value, we have also set aside the arbitral
award taking note of the fact that the Arbitrator had ignored the
material evidence in determination of the market value. The matter
has then been relegated to the Statutory Arbitrator to make a fresh
consideration to the claims of the land owners for redetermination
of the market value, taking into account the evidence led by the
parties, by proceeding afresh and declare an award strictly in
accordance with law.
7. It may not be out of place to mention herein that while setting
aside the order passed by the Court under Section 34 of the Act,
1996, we were guided by the recent decision of the five Judges
Bench of the Apex Court in Gayatri Balasamy v/s. ISG Novasoft
Technologies Ltd. (2025 SCC OnLine SC 986].
8. Considering the above, we allow the present appeal setting
aside the judgment and order dated 03.01.2022 passed by
Additional District & Sessions Judge, Rajula under Section 34 of the
Act, 1996 to the extent of re-determination of the market value. The
decision to set aside the award is hereby upheld for the reasoning
given therein. The matter is remitted back to the Statutory
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Arbitrator for fresh consideration of the claims of the land owners for
re-determination of the market value of the land-in-question taking
into consideration the evidence led by the parties by proceeding
afresh and declare the award strictly in accordance with law.
9. We also leave it open to both the parties to lead further
evidence in support of their claims, if need be. The statutory
Arbitrator is directed to make fresh adjudication by giving due
notice and opportunity of hearing to all the concerned parties,
including the heirs and legal representatives of the respondents
herein, who could not be served as they had expired. While making
the award, the statutory Arbitrator is required to keep in mind the
provisions of sub-section(5) read with sub-section(7) of Section 3G
of the National Highways Act, 1956.
10. The present appeal is allowed as above. The Civil Application
also stands disposed, accordingly.
(SUNITA AGARWAL, CJ )
(D.N.RAY,J)
C.M. JOSHI
