Madras High Court
The Project Director vs Y.Firthous Parveen ... 1St on 9 April, 2025
Author: G.R.Swaminathan
Bench: G.R.Swaminathan
C.M.A(MD)No.1084 of 2021 etc batch
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 09.04.2025
CORAM
THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN
and
THE HONOURABLE MR.JUSTICE M.JOTHIRAMAN
C.M.A(MD)Nos.1084 & 1085 of 2021, 341 of 2025, 97 of 2021,
273 to 278 of 2025, 942 of 2023, 328 of 2024, 432 of 2024,
453 to 455 of 2024, 457 of 2024, 1038 of 2023, 1039 of 2023,
1070 of 2023, 1072 of 2023, 1084 of 2023, 1102 of 2023, 1117 of 2023
and
Arb Appeal(MD)Nos.2 to 9 of 2025, 11 to 34 of 2025,
42 & 43 of 2025, 5 of 2024
and
C.M.P(MD)Nos.4345 & 4342 of 2022 & 10257, 10259, 868 of 2021 &
1094, 1097, 1100, 1104, 1106, 1196, 1499, 1329, 1759, 1761, 1764, 1767,
2056, 2148, 2150, 2151, 2153, 2155, 2157, 5998, 5441, 5702, 1755, 2159,
2377, 2379, 2380, 2403, 2404, 2405, 4841, 4842, 4844, 2409, 2411, 2413,
2450, 2451, 4838, 4839, 4840 of 2025,
6137, 18487, 4497, 5662, 6092, 6094, 6097 of 2024,
15225, 13206, 14671, 14152, 14151, 14718, 14894, 15022 of 2023
C.M.A(MD)No.1084 of 2021:
The Project Director,
National Highways Authority of India,
NH 49 & 210 National Highways,
Subramaniapuram 3rd Street,
I & II Floor,
Karaikudi. ... Appellant /
2nd Respondent
1/6
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C.M.A(MD)No.1084 of 2021 etc batch
Vs.
1.Y.Firthous Parveen ... 1st Respondent /
Appellant
2.Spl.District Revenue Officer (LAO),
NH 49 & 210 National Highways,
Collector's Office,
Ramnad. ... 2nd Respondent /
LAO Competent Authority
Prayer: Civil Miscellaneous Appeal filed under Section 37(1) & (2) of
Arbitration and Conciliation Act, 1996 to set aside the order made in
Arbitration O.P.No.91 of 2019 on the file of the Principal District Court,
Madurai dated 09.07.2021 and allow the appeal.
For Appellant : Mr.Sachin Ragul
for Mr.C.Arul Vadivel Alias Sekar
For Respondents : Mr.M.P.Senthil for R.1
Mr.K.Balasubramani
Special Government Pleader for R.2
COMMON JUDGMENT
Heard both sides.
2.The lands belonging to the respondents herein were acquired under
the provisions of the National Highways Act, 1956. The competent authority
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C.M.A(MD)No.1084 of 2021 etc batch
determined the amount payable as compensation. Since the said amount so
determined by the competent authority was not acceptable by the land owners,
they filed an application under Section 3G(5) of the Act before the District
Collector. The District Collector passed arbitral award quantifying the
compensation payable to the land owners. Not satisfied with the same, the
persons whose lands were acquired, filed petitions under Section 34 of the
Arbitration and Conciliation Act, 1996. By the orders impugned in these
appeals, the learned District Judges chose to enhance the compensation amount.
Questioning the same, these arbitration appeals have been filed under Section
37 of the Act by the NHAI.
3.The only question that calls for determination is whether the
District Judges could have enhanced the compensation amount and by thus
modifying the arbitral awards while exercising their jurisdiction under Section
34 of the Act. We are conscious that the issue is presently pending reference
before the Hon'ble Constitution Bench of Supreme Court of India in Gayathri
Balasamy Vs M/s.ISG Novasoft Technologies Limited case. Orders have been
reserved. But the position that prevailed on the date when the impugned orders
under Section 34 was passed was that modification cannot be made.
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C.M.A(MD)No.1084 of 2021 etc batch
4.We, therefore, hold that the impugned orders are clearly bad in law.
We are therefore inclined to set aside the same and we accordingly set aside the
same.
5.The learned Deputy Solicitor General of India, on instructions from
NHAI, submitted that this Court may adopt the very same approach adopted in
C.M.A.No.2763 of 2023 dated 15.12.2023 by the Hon'ble Division Bench of
this Court. He has no objection for setting aside the arbitral awards impugned
in the petitions filed under Section 34 of the Act. Accordingly, the awards
passed by the District Collector are also set aside. The matter is remitted to the
file of the arbitrator (jurisdictional District Collectors). The arbitrator shall
conclude the proceedings within four months from the date of receipt of a copy
of this order. The erstwhile land owners are entitled to plead that the arbitrator
shall apply the principle of parity. NHAI is also entitled to place materials in
support of their contention that the compensation amount does not deserve to
be enhanced as claimed by the erstwhile land owners. In the event of the
Hon'ble Supreme Court while answering the reference in Gayathri Balasamy
holding that the District Courts are entitled to modify the awards in exercise of
jurisdiction under Section 34 of the Arbitration and Conciliation Act, the
respondents herein are given liberty to reopen these proceedings. Even if one
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C.M.A(MD)No.1084 of 2021 etc batch
application is filed, we make it clear that Civil Miscellaneous Appeals and
Arbitration Appeals will stand reopened and the matter will be heard on merits.
5.These Civil Miscellaneous Appeals and Arbitration Appeals are
accordingly allowed. There shall be no order as to costs. Consequently,
connected miscellaneous petitions are closed.
[G.R.S., J.] [M.J.R., J.]
09.04.2025
NCC : Yes / No
Internet : Yes / No
Index : Yes / No
MGA
To
1.The Principal District Court,
Madurai.
2.Spl.District Revenue Officer (LAO),
NH 49 & 210 National Highways,
Collector's Office,
Ramnad.
3.The Special District Revenue Officer /
Competent Authority for Land Acquisition,
National Highway – 45E&220,
Collectorate Buildings,
Theni.
4.The Principal District Judge and Sessions Judge,
Theni.
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C.M.A(MD)No.1084 of 2021 etc batch
G.R.SWAMINATHAN, J
and
M.JOTHIRAMAN, J.
MGA
5.The Special District Revenue Officer,
Competent Authority for Land Acquisition,
(National Highways – 45E & 220) having his office at
P.C.Patti,
Theni.
C.M.A(MD)Nos.1084 & 1085 of 2021, 341 of 2025, 97 of 2021,
273 to 278 of 2025, 942 of 2023, 328 of 2024, 432 of 2024,
453 to 455 of 2024, 457 of 2024, 1038 of 2023, 1039 of 2023,
1070 of 2023, 1072 of 2023, 1084 of 2023, 1102 of 2023, 1117 of 2023
and
Arb Appeal(MD)Nos.2 to 9 of 2025, 11 to 34 of 2025,
42 & 43 of 2025, 5 of 2024
09.04.2025
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