Madras High Court
The Project Director vs M.Prasanna Kumar on 6 November, 2025
Author: S.M.Subramaniam
Bench: S.M.Subramaniam, Mohammed Shaffiq
W.A.No.2297 of 2023
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IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 06.11.2025
CORAM:
THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM
AND
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.A.No. 2297 of 2023
and
C.M.P.No.19706 of 2023
The Project Director,
National Highways Authority of India,
Project Implementation Unit – Chennai,
“Sri Tower”, 3rd Floor, DP-34(SP),
Industrial Estate, Guindy,
Chennai – 600 032. ...Appellant
Vs.
1.M.Prasanna Kumar
2.The Arbitrator & District Collector,
Thiruvallur District.
3.The Special District Revenue Officer (LA),
NH 205, No.3&4, LalBagadhur Sasthiri Street,
Periyakuppam Railway Road, Near Thulasi Theatre,
Thiruvallur – 602 001. ...Respondents
PRAYER: The Writ Appeal filed under Clause 15 of the Letters Patent praying
to set aside the order dated 01.12.2022 in W.P.No.32384 of 2022.
1/8
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W.A.No.2297 of 2023
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For Appellant : Mr.SU.Srinivasan
For Respondents : Mr.M.P.Saravanan for R1
Mr.A.Selvendran, Spl.GP for R2 & R3
JUDGMENT
(Judgment of the Court was delivered by S.M.SUBRAMANIAM, J.)
The present private respondent/original writ petitioner has filed a writ
petition seeking direction against the third respondent therein to deposit
compensation amount as per award passed by Arbitrator/District Collector
under provisions of National Highways Act, 1956 and disburse the same. Writ
Court disposed of writ petition by passing following orders:
“4. Accordingly, all the writ petition is disposed of with the
following directions:
(1) The respondents are directed to deposit the
enhanced compensation amount as per the Arbitral Award
together with interest at the rate of 9% per annum from the
date of taking possession under Section 3D of the National
Highways Act, 1956, with the competent authority within a
period of one week from the date of receipt of a copy of this
order.
(2) If the respondents failed to obtain any interim
order against the arbitral award in the Arbitration Original
Petition on the file of the Principal District Court, Tiruvallur
within a period of four weeks from the date of receipt of a
copy of this order, the competent authority is directed to
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disburse the compensation amount which was deposited by
the respondents forthwith.”
2. Learned counsel for the appellant would strenuously contend that
none of the conditions raised by the present appellant was considered by
arbitrator while passing award. Issue of limitation was subsequently raised and
same has not been addressed by arbitrator. Other factual aspects were also
raised. However, without considering grounds raised by the appellant, award
has been passed, thereby awarding an exorbitant compensation amount.
3. Appellant has filed an application under Section 34 of Arbitration and
Conciliation Act, 1996 (for brevity, hereinafter referred to as, 'the Act of 1996')
challenging said award, but, due to the fact that officer in-charge to register got
changed twice, application was not registered.
4. Learned counsel would further submit that the writ petition is not
maintainable. The original petitioner could have filed an execution petition. The
learned Single Judge came to a conclusion that writ petition is not
maintainable, since there is an alternate remedy available under Section 36 of
the Act of 1996 for execution. However directed the appellant to deposit
enhanced compensation amount with interest at rate of 9% per annum and
further observed that, if any interim order against arbitral award is not obtained
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within four weeks, competent authority was directed to disburse the
compensation amount. Issues are not decided on merits of the contentions
raised by appellant. The condition imposed to deposit amount and disburse
the same is an onerous one.
5. No doubt, original petitioner has a remedy of execution under Section
36 of the Act of 1996. Writ Court relied upon order of this Court dated
16.11.2021 in W.P.No.14766 of 2021 with regard to maintainability of writ
petition.
6. Be that as it may, according to the present appellant, challenge to
arbitral award is pending consideration before concerned District Judge. In
view of that, it would not be proper for this Court to comment upon merits of
arbitral award. In light thereof, we have not considered contentions of
respective parties upon merits of the arbitral award.
7. The deposit of amount would also be to the advantage of the present
appellant, inasmuch as with regard to the amount deposited, the further
interest would be arrested.
8. We may appreciate anxiety of original petitioner to receive enhanced
compensation amount and at the same time, grounds raised by present
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appellant also will have to be considered by Court, dealing with application
under Section 34 of the Act of 1996. The equities will have to be adjusted.
9. The learned Single Judge had also passed further orders, which in
the opinion of this Court would be required to be modified. In light of that, this
Court passes following orders:
(i) In some of the appeals relating to this case, this Court
had directed the appellant to deposit 50% of the amount of
enhanced compensation, which according to the learned
counsel for the appellant, has been complied with and the
50% of the amount is deposited. The 50% of the amount
already deposited shall be transferred to the Court of the
concerned District Judge, where the application filed by the
appellants under Section 34 of the Act of 1996 is pending;
(ii) In other appeals, where the amount of 50% of the
enhanced compensation amount is not deposited, the same
shall be deposited by the present appellant with the
concerned Court within a period of ten weeks from today
(i.e., 19.12.2025);
(iii) The original petitioner is at liberty to apply for the
withdrawal of the amount, which application shall be
considered by the concerned District Judge, on its own
merits and after hearing all parties concerned, appropriate
orders shall be passed;
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(iv) The present appellant may also seek further orders on
the stay petition before the learned District Judge;
(v) Depending upon the order, that may be passed by the
learned District Judge on the application of the original
petitioner for withdrawal of the amount, further steps may
be taken with regard to the amount, if lying in the Court,
such as to invest the same in a Nationalised Bank or
otherwise.
(vi) Considering the huge amount involved, the learned
District Judge, with whom the application under Section 34
of the Act of 1996 is pending, may endeavour to decide the
application under Section 34 of the Act of 1996
expeditiously.
10. With these observations and directions, writ appeal stands disposed
of. There will be no order as to costs. Consequently, the connected
miscellaneous petition is closed.
(S.M.S., J.) (M.S.Q., J.)
06.11.2025
dsa
Index :Yes/No
Neutral Citation :Yes/No
Speaking/Non-speaking order
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To
1.The Project Director,
National Highways Authority of India,
Project Implementation Unit – Chennai,
“Sri Tower”, 3rd Floor, DP-34(SP),
Industrial Estate, Guindy,
Chennai – 600 032.
2.The Arbitrator & District Collector,
Thiruvallur District.
3.The Special District Revenue Officer (LA),
NH 205, No.3&4, LalBagadhur Sasthiri Street,
Periyakuppam Railway Road, Near Thulasi Theatre,
Thiruvallur – 602 001.
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S.M.SUBRAMANIAM, J.
and
MOHAMMED SHAFFIQ, J.
dsa
06.11.2025
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