Karnataka High Court

Murtujasab S/O Dastagirisab Banakar vs The Assistant Commissioner And Ors on 17 February, 2025

                                            -1-
                                                      NC: 2025:KHC-K:1090
                                                  MFA No. 200322 of 2022
                                              C/W MFA No. 200266 of 2022
                                                  MFA No. 200276 of 2022
                                                & MFA No. 200686 of 2022


                            IN THE HIGH COURT OF KARNATAKA

                                   KALABURAGI BENCH

                        DATED THIS THE 17TH DAY OF FEBRUARY, 2025

                                         BEFORE

                            THE HON'BLE MR. JUSTICE C.M. JOSHI



                        MISCL. FIRST APPEAL NO.200322 OF 2022 (AC)
                                           C/W
                        MISCL. FIRST APPEAL NO.200266 OF 2022 (AC)
                        MISCL. FIRST APPEAL NO.200276 OF 2022 (AC)
                        MISCL. FIRST APPEAL NO.200686 OF 2022 (AC)


                   IN MFA NO.200322/2022:

                   BETWEEN:

Digitally signed   1.   BASALINGAYYA S/O GURUSIDDAYYA GANACHARI,
by LUCYGRACE
Location: HIGH          AGE: 48 YEARS, OCC: AGRICULTURE,
COURT OF
KARNATAKA               R/O NIDAGUNDI, TQ. BASAVANA BAGEWADI,
                        DIST. VIJAYAPURA-586 101.

                   2.   SHRISHAIL S/O SANGAYYA MATH,
                        AGE: 41 YEARS, OCC: AGRICULTURE,
                        R/O NIDAGUNDI, TQ. BASAVANA BAGEWADI,
                        DIST. VIJAYAPURA-586 101.
                                                          ...APPELLANTS

                   (BY SRI HARSHAVARDHAN R. MALIPATIL, ADVOCATE)
                              -2-
                                          NC: 2025:KHC-K:1090
                                      MFA No. 200322 of 2022
                                  C/W MFA No. 200266 of 2022
                                      MFA No. 200276 of 2022
                                    & MFA No. 200686 of 2022


AND:


1.     THE ASSISTANT COMMISSIONER-
       CUM-COMPETENT AUTHORITY
       FOR LAND ACQUISITION OF NH-13,
       VIJAYAPURA-586 101.

2.     THE GENERAL MANAGER (TECH AND P.D.),
       NH-13, DHARWAD,
       DHARWAD
       NOW THE PROJECT DIRECTOR (PIU),
       NATIONAL HIGHWAY AUTHORITY OF INDIA,
       PLOT NO.65, KOTHARI LAYOUT,
       VENKATESH NAGAR,
       KALABURAGI-585 103.

3.     THE ARBITRATOR,
       NATIONAL HIGHWAY AUTHORITY OF INDIA AND
       DEPUTY COMMISSIONER,
       VIJAYAPURA-586 101.
                                             ...RESPONDENTS

(BY SRI JAMADAR SHAHABUDDIN, HCGP, FOR R1 & R3;
 SRI SANTOSH KUMAR MARADI, ADV., FOR R2)


        THIS MFA IS FILED UNDER SECTION 37(1)(c) OF
ARBITRATION AND CONCILIATION ACT, PRAYING TO ALLOW
THIS     APPEAL    WITH   COSTS    BY   SETTING   ASIDE   THE
JUDGEMENT         AND AWARD PASSED BY THE COURT OF III
ADDL. DISTRICT JUDGE, VIJAYAPURA, DATED 18.01.2021 IN
A.A.    NO.79/2018     AND   CONSEQUENTLY,        ALLOW   THE
ARBITRATION APPLICATION OF THE APPELLANT.
                          -3-
                                   NC: 2025:KHC-K:1090
                               MFA No. 200322 of 2022
                           C/W MFA No. 200266 of 2022
                               MFA No. 200276 of 2022
                             & MFA No. 200686 of 2022


IN MFA NO.200266/2022:

BETWEEN:

MURTUJASAB S/O DASTAGIRISAB BANAKAR,
AGE: 68 YEARS, OCC: AGRICULTURE,
R/O NIDAGUNDI, TQ. BASAVANA BAGEWADI,
DIST. VIJAYAPURA.
                                            ...APPELLANT
(BY SRI HARSHAVARDHAN R. MALIPATIL, ADVOCATE)


AND:


1.   THE ASSISTANT COMMISSIONER-
     CUM-COMPETENT AUTHORITY FOR LAND
     ACQUISITION OF NH-13,
     VIJAYAPURA.

2.   THE GENERAL MANAGER (TECH AND P.D.),
     NH-13,DHARWAD,
     DHARWAD
     NOW THE PROJECT DIRECTOR (PIU),
     NATIONAL HIGHWAY AUTHORITY OF INDIA,
     PLOT NO. 65, KOTHARI LAYOUT,
     VENKATESH NAGAR,
     KALABURAGI-585 103.

3.   THE ARBITRATOR,
     NATIONAL HIGHWAY AUTHORITY OF INDIA AND
     DEPUTY COMMISSIONER,
     VIJAYAPURA.

4.   UNION OF INDIA
     DEVELOPMENT OF ROAD TRANSPORT,
     BY ITS SECRETARY,
                            -4-
                                        NC: 2025:KHC-K:1090
                                    MFA No. 200322 of 2022
                                C/W MFA No. 200266 of 2022
                                    MFA No. 200276 of 2022
                                  & MFA No. 200686 of 2022


     TRANSPORT BHAVAN, PARLIAMENT STREET,
     NEW DELHI-110 001.
                                     ...RESPONDENTS

(BY SRI JAMADAR SHAHABUDDIN, HCGP, FOR R1 & R3;
 SRI SANTOSH KUMAR MARADI, ADV., FOR R2;
 SRI SUDHIRSINGH R. VIJAPUR, ADV., FOR R4)

       THIS MFA IS FILED UNDER SECTION 37 (1)(c) OF
ARBITRATION AND CONCILIATION ACT, PRAYING TO ALLOW
THIS    APPEAL   WITH   COSTS    BY   SETTING    ASIDE   THE
JUDGMENT AND AWARD PASSED BY THE COURT OF III
ADDL. DISTRICT JUDGE, VIJAYAPURA, DATED 25.11.2019 IN
AA     NO.36/2018   AND   CONSEQUENTLY          ALLOW    THE
ARBITRATION APPLICATION OF THE APPELLANT.



IN MFA NO.200276/2022:

BETWEEN:

MADIVALAYYA S/O BASAYYA CHIKKAMATH,
AGE: 61 YEARS, OCC: AGRICULTURE,
R/O HUNSYAL, TQ. BASAVANA BAGEWADI,
DIST. VIJAYAPURA-586 101.
                                                ...APPELLANT
(BY SRI HARSHAVARDHAN R. MALIPATIL, ADVOCATE)


AND:


1.   THE ASSISTANT COMMISSIONER-
     CUM-COMPETENT AUTHORITY FOR LAND
     ACQUISITION OF NH-13,
     VIJAYAPURA-586 101.
                            -5-
                                        NC: 2025:KHC-K:1090
                                    MFA No. 200322 of 2022
                                C/W MFA No. 200266 of 2022
                                    MFA No. 200276 of 2022
                                  & MFA No. 200686 of 2022


2.   THE GENERAL MANAGER (TECH AND P.D.),
     NH-13, DHARWAD,
     DHARWAD
     NOW THE PROJECT DIRECTOR (PIU),
     NATIONAL HIGHWAY AUTHORITY OF INDIA,
     PLOT NO. 65, KOTHARI LAYOUT,
     VENKATESH NAGAR,
     KALABURAGI-585 103.

3.   THE ARBITRATOR,
     NATIONAL HIGHWAY AUTHORITY OF INDIA AND
     DEPUTY COMMISSIONER,
     VIJAYAPURA-586 101.

4.   UNION OF INDIA DEVELOPMENT OF ROAD
     TRANSPORT,
     BY ITS SECRETARY,
     TRANSPORT BHAVAN, PARLIAMENT STREET,
     NEW DELHI-110 001.
                                      ...RESPONDENTS
(BY SRI JAMADAR SHAHABUDDIN, HCGP, FOR R1 AND R3;
 SRI SANTOSH KUMAR MARADI, ADV., FOR R2;
 SRI SUDHIRSINGH R. VIJAPUR, ADV., FOR R4)

       THIS MFA IS FILED UNDER SECTION 37(1)(c) OF
ARBITRATION AND CONCILIATION ACT, PRAYING TO ALLOW
THIS    APPEAL   WITH   COSTS    BY   SETTING   ASIDE   THE
JUDGMENT AND AWARD PASSED BY THE COURT OF I ADDL.
DISTRICT JUDGE, VIJAYAPURA DATED 29-09-2020 IN AA
NO.16    OF   2017   AND   CONSEQUENTLY         ALLOW   THE
ARBITRATION APPLICATION OF THE APPELLANT.
                          -6-
                                    NC: 2025:KHC-K:1090
                               MFA No. 200322 of 2022
                           C/W MFA No. 200266 of 2022
                               MFA No. 200276 of 2022
                             & MFA No. 200686 of 2022


IN MFA NO.200686/2022:

BETWEEN:


VEERANNA S/O NAGAPPA ANKAD,
AGE: 68 YEARS, OCC: AGRICULTURE,
R/O GONAL, TQ. BASAVANA BAGEWADI,
DIST. VIJAYAPURA-586 212.
                                            ...APPELLANT

(BY SRI HARSHAVARDHAN R. MALIPATIL, ADVOCATE)

AND:


1.   THE ASSISTANT COMMISSIONER-
     CUM-COMPETENT AUTHORITY FOR LAND
     ACQUISITION OF NH-13,
     VIJAYAPURA-586 101.

2.   THE GENERAL MANAGER (TECH AND P.D.),
     NH-13, DHARWAD,
     DHARWAD
     NOW THE PROJECT DIRECTOR (PIU),
     NATIONAL HIGHWAY AUTHORITY OF INDIA,
     PLOT NO. 65, KOTHARI LAYOUT,
     VENKATESH NAGAR,
     KALABURAGI-585 103.

3.   THE ARBITRATOR,
     NATIONAL HIGHWAY AUTHORITY OF INDIA AND
     DEPUTY COMMISSIONER,
     VIJAYAPURA-586 101.

4.   UNION OF INDIA DEVELOPMENT OF ROAD
     TRANSPORT,
     BY ITS SECRETARY,
                               -7-
                                          NC: 2025:KHC-K:1090
                                     MFA No. 200322 of 2022
                                 C/W MFA No. 200266 of 2022
                                     MFA No. 200276 of 2022
                                   & MFA No. 200686 of 2022


    TRANSPORT BHAVAN, PARLIAMENT STREET,
    NEW DELHI-110 001.
                                    ...RESPONDENTS
(BY SRI JAMADAR SHAHABUDDIN, HCGP, FOR R1 & R3;
 SRI SANTOSH KUMAR MARADI, ADV., FOR R2;
 SRI SUDHIRSINGH R. VIJAPUR, ADV., FOR R4)

     THIS MFA IS FILED UNDER SECTION 37(1)(c) OF
ARBITRATION AND        CONCILIATION       ACT, PRAYING TO
ALLOW THIS APPEAL WITH COSTS BY SETTING ASIDE THE
JUDGMENT AND AWARD PASSED BY THE COURT OF I ADDL.
DISTRICT JUDGE, VIJAYPURA, DATED 29.09.2020 IN AA NO.
14 OF 2017 AND CONSEQUENTLY ALLOW THE ARBITRATION
APPLICATION OF THE APPELLANT.

     THESE APPEALS COMING ON FOR ADMISSION, THIS
DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE C.M. JOSHI


                      ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE C.M. JOSHI)

1. In all these appeals, the appellants are

questioning the judgments of the challenge Court passed in

A.A. Nos.79/2018 dated 18.01.2021, A.A. No.36/2018 dated

25.11.2019, A.A. No.16/2017 dated 29.09.2020 and A.A.

No.14/2017 dated 29.09.2020, whereby, the challenge to

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the arbitral awards passed by the Statutory Arbitrator were

dismissed.

2. The submission by the learned counsel Sri

Harshavardhan R. Malipatil for the appellants, Sri

Santoshkumar Maradi for respondent No.2 - the National

Highway Authority of India and learned High Court

Government Pleader for respondent Nos.1 and 3 are heard

and perused the material available on record.

3. The records reveal that respondent No.2 - the

National Highway Authority has acquired certain portion of

the lands belonging to the appellants under the provisions of

the National Highways Act (for short 'the said Act'). In the

said acquisition under Section 3G of the said Act, award was

passed by respondent No.1. The said award was challenged

before respondent No.3 - Deputy Commissioner, who was

the Statutory Arbitrator. The Arbitral Tribunal of respondent

No.3 passed award enhancing the compensation marginally,

but without following the provisions of the Land Acquisition

Act, 1894. Challenging the arbitral award passed by

NC: 2025:KHC-K:1090

respondent No.3 - Deputy Commissioner, the appellants

approached the District Court under Section 34 of the

Arbitration and Conciliation Act, but with failure and as such,

they have invoked Section 37 of the Arbitration and

Conciliation Act and are before this Court.

4. The learned counsel appearing for the appellants

relied on the judgment of this Court in MFA No.200229/2022

dated 21.02.2022, whereby a Division Bench of this Court

had remitted the matter back to the Arbitral Tribunal on the

ground that the assessment of the compensation as per

Section 3J of the said Act was impermissible, since the

Section 3J being ulter virus the Constitution of India, was

struck down by the Apex Court in the case of Union of

India and another Vs. Tarsem Singh and others1. The

Division Bench of this Court in Para 9 has observed as below:

"9. In the instant case, it is the grievance of the appellant that both the competent authorities as well as Arbitral Tribunal

AIR 2019 SC 4689

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comprising of the Sole Arbitrator appointed by the Central Government have committed an error in not awarding solatium, interest and other statutory benefits in terms of Sections 23, 23(1-A), 23 (2) and Section 28 of the Land Acquisition Act, 1894. However, in view of the striking down of Section 3J of the National Highways Act, 1956, the appellant would be entitled to request the Arbitrator to invoke and apply aforesaid provisions of Land Acquisition Act which cannot be said to be not applicable to the acquisition proceedings under the National Highways Act in the light of the decision of Apex Court in Union of India and another Vs. Tarsem Singh and others supra."

5. In that view of the matter, the present appeals

also succeed on the ground of parity. The arbitral Tribunal

consisting of respondent No.3 being a Statutory Arbitrator,

the question of such Statutory Arbitrator arbitrating a

dispute of an award passed by his subordinate and it being

hit by the provisions of the Arbitration and Conciliation Act is

also kept open.

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NC: 2025:KHC-K:1090

6. Learned counsel appearing for respondent No.2

and learned High Court Government Pleader appearing for

respondent Nos.1 and 3 also concede the above position.

Hence the following:

ORDER

i) The appeals are hereby allowed.

ii) The impugned judgments respectively in

these appeals dated 18.01.2021 in A.A.

No.79/2018, dated 25.11.2019 in A.A.

No.36/2018, dated 29.09.2020 in A.A.

No.16/2017, dated 29.09.2020 in A.A.

No.14/2017, so also arbitral awards, passed

by the 3rd respondent are set aside.

iii) The matter is remitted back to the 3rd

respondent - Arbitrator-Cum-Deputy

Commissioner for reconsideration afresh in

accordance with law, bearing in mind the