Punjab-Haryana High Court
M/S Punjab Pesticides Industrial ... vs Union Of India And Ors on 31 July, 2023
VIMAL KUMAR
2023.08.01 19:35
2023: PHHC:098231
IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
FAO-3903-2023 (O&M)
Date of Decision: 31.07.2023
M/s Punjab Pesticides Industrial Cooperation Society Ltd.
... Appellant
Versus
Union of India & others
...Respondents
CORAM: HON'BLE MR. JUSTICE GURVINDER SINGH GILL
Present: Mr. Kanwaljit Singh, Senior Advocate, with
Mr. Ajaivir Singh, Advocate, for the appellant.
GURVINDER SINGH GILL, J. (Oral)
The present appeal has been preferred by M/s Punjab Pesticides
Industrial Cooperation Society Ltd. against common order dated
15.05.2023 passed by the Additional District Judge, Rupnagar, whereby
while dismissing the objection petition filed on behalf of the appellant,
award dated 24.09.2019 passed by the Arbitrator has been set aside.
A few facts necessary to notice are that the land belonging to the
appellant - M/s Punjab Pesticides Industrial Cooperation Society Ltd. had
been acquired under Section 3-A of the National Highway Act for the
purpose of "building (widening/four laning etc.) maintenance,
management and operation of National Highway No.5 (new), Kharar to
Morinda Road (Ludhiana-Chandigarh Section)". |The Competent
Authority -cum- SDM, Kharar announced its award awarding
compensation to the tune of Rs.2.70 crore per acre. The appellant
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authenticity of this document
FAO-3903-2023 (O&M) -2-
VIMAL KUMAR
2023.08.01 19:35
invoked arbitration and the Arbitrator vide its award dated 24.09.2019
remanded the matter back to the Competent Authority -cum- SDM,
Kharar for a fresh decision while noticing certain irregularities.
Thereafter, the appellant as well as respondents filed separate petitions
under Section 34 of the Arbitration & Conciliation Act, which were
decided by the Additional District Judge, Rupnagar vide impugned order
dated 15.05.2023. The Additional District Judge, Rupnagar, while
allowing the objection petition filed on behalf of the respondent, has
dismissed the objection petition filed on behalf of the appellant and set
aside the award dated 24.09.2019 passed by the Arbitrator holding that
the Arbitrator had no power to remand the matter.
Learned senior counsel appearing on behalf of the appellant submits that
the appellant has virtually been left with no remedy so as to seek
enhancement of the compensation. Learned senior counsel has, however,
pressed into service a judgment rendered by Hon'ble Supreme Court in
Dr. A. Parthasarathy & others Vs. E. Springs Avenues Pvt. Ltd. &
others, 2022 (2) RC (Civil) 329, which suggests that in such a situation,
the High Court may either relegate the parties for fresh arbitration or to
consider the appeal on merits. The said judgment has also been relied
upon by a Coordinate Bench in FAO-413-2022 titled 'Union of India &
another Vs. Atma Singh & others' decided on 21.04.2023.
Notice of motion.
Mr. Raghubir Singh Madan, Advocate, who is present in Court, accepts
notice on behalf of respondent No.2/NHAI, whereas Mr. Inderpreet
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authenticity of this document
FAO-3903-2023 (O&M) -3-
VIMAL KUMAR
2023.08.01 19:35
Singh Kang, AAG, Punjab, accepts notice on behalf of respondents No.3
& 4.
Mr. Raghubir Singh Madan, leaned counsel representing respondent
No.2/NHAI has not disputed the ratio laid down by Hon'ble Supreme
Court in Dr. A. Parthasarathy's case (supra).
Having regard to the peculiar facts and circumstances of the case and
while bearing in mind the ratio in Dr. A. Parthasarathy's case (supra),
this Court is of the opinion that the best course open in the present
circumstances would be to relegate the parties for fresh arbitration. Thus,
the appellant would be at liberty to move an appropriate application
before the Divisional Commissioner concerned so as to initiate fresh
adjudication.
Appeal stands disposed of accordingly.
31.07.2023 (GURVINDER SINGH GILL)
Vimal JUDGE
Whether speaking/reasoned: Yes/No
Whether reportable: Yes/No
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authenticity of this document
