in the high court of karnataka circuit bench at...
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IN THE HIGH COURT OF KARNATAKA
CIRCUIT BENCH AT DHARWAD
DATED THIS THE 11TH DAY OF JANUARY 2013
BEFORE
THE HON’BLE MR.JUSTICE ARAVIND KUMAR
MFA NO.21806/2012 (AA)C/W MFA NOS.21807, 21808, 21809, 21810, 21811, 21812,
21813, 21814, 21815 & 21816 OF 2012
MFA NO.21806/2012:
BETWEEN:
NINGANAGOUDAS/O SHIVANAGOUDA PATIL & OTHERS,LEGAL HEIRS OF LATE SHIVANAGOUDA,S/O NINGANAGOUDA PATILAGE: 41 YEARS, OCC: AGRICULTURE,R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM
…APPELLANT[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
: 2 :
THIS MISCELLANEOUS FIRST APPEAL IS FILEDUNDER SECTION 37(1)(B) OF ARBITRATION ANDCONCILIATION ACT, 1996, AGAINST THE JUDGMENT ANDAWARD DATED 22.10.2011 PASSED IN ARBITRATIONCASE NO.4/2011 ON THE FILE OF THE PRINCIPALDISTRICT JUDGE, BELGAUM, REJECTING THE PETITIONFILED UNDER SECTION 34 OF ARBITRATION ANDCONCILIATION ACT.
MFA NO.21807/2012:
BETWEEN:
BABU S/O MALLAPPA YAMMINAKATTI,AGE: 51 YEARS, OCC: AGRICULTURE,R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM. …APPELLANT
[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
THIS MISCELLANEOUS FIRST APPEAL IS FILEDUNDER SECTION 37(1)(B) OF ARBITRATION ANDCONCILIATION ACT, 1996, AGAINST THE JUDGMENT ANDAWARD DATED 22.10.2011 PASSED IN ARBITRATION
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CASE NO.5/2011 ON THE FILE OF THE PRINCIPALDISTRICT JUDGE, BELGAUM, REJECTING THE PETITIONFILED UNDER SECTION 34 OF ARBITRATION ANDCONCILIATION ACT.
MFA NO.21808/2012:
BETWEEN:
BASAPPA S/O IRAPPA PISHANNAVAR,AGE: 56 YEARS, OCC: AGRICULTURE,R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM. …APPELLANT
[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
THIS MISCELLANEOUS FIRST APPEAL IS FILEDUNDER SECTION 37(1)(B) OF ARBITRATION ANDCONCILIATION ACT, 1996, AGAINST THE JUDGMENT ANDAWARD DATED 22.10.2011 PASSED IN ARBITRATIONCASE NO.6/2011 ON THE FILE OF THE PRINCIPALDISTRICT JUDGE, BELGAUM, REJECTING THE PETITIONFILED UNDER SECTION 34 OF ARBITRATION ANDCONCILIATION ACT.
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MFA NO.21809/2012:
BETWEEN:
SRI. PRAKASH S/O VEERAPPA JAPATIAGE: 45 YEARS, OCC: AGRICULTURE,R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM. …APPELLANT
[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
THIS MISCELLANEOUS FIRST APPEAL IS FILED
UNDER SECTION 37(1)(B) OF ARBITRATION AND
CONCILIATION ACT, 1996, AGAINST THE JUDGMENT AND
AWARD DATED 22.10.2011 PASSED IN ARBITRATION
CASE NO.7/2011 ON THE FILE OF THE PRINCIPAL
DISTRICT JUDGE, BELGAUM, REJECTING THE PETITION
FILED UNDER SECTION 34 OF ARBITRATION AND
CONCILIATION ACT.
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MFA NO.21810/2012:
BETWEEN:
GANGAPPA S/O BASAPPA AMBADAGATTIAGE: 56 YEARS, OCC: AGRICULTURE,R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM. …APPELLANT
[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
THIS MISCELLANEOUS FIRST APPEAL IS FILED
UNDER SECTION 37(1)(B) OF ARBITRATION AND
CONCILIATION ACT, 1996, AGAINST THE JUDGMENT AND
AWARD DATED 22.10.2011 PASSED IN ARBITRATION
CASE NO.8/2011 ON THE FILE OF THE PRINCIPAL
DISTRICT JUDGE, BELGAUM, REJECTING THE PETITION
FILED UNDER SECTION 34 OF ARBITRATION AND
CONCILIATION ACT.
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MFA NO.21811/2012:
BETWEEN:
MOTAPPA URF DUNDAPPAS/O BASALINGAPPA ROTTIAGE: 61 YEARS, OCC: AGRICULTURE,R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM. …APPELLANT
[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
THIS MISCELLANEOUS FIRST APPEAL IS FILED
UNDER SECTION 37(1)(B) OF ARBITRATION AND
CONCILIATION ACT, 1996, AGAINST THE JUDGMENT AND
AWARD DATED 22.10.2011 PASSED IN ARBITRATION
CASE NO.9/2011 ON THE FILE OF THE PRINCIPAL
DISTRICT JUDGE, BELGAUM, REJECTING THE PETITION
FILED UNDER SECTION 34 OF ARBITRATION AND
CONCILIATION ACT.
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MFA NO.21812/2012:
BETWEEN:
YALLAPPA S/O RUDRAPPA SHINTRIAGE: 46 YEARS, OCC: AGRICULTURE,
R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM. …APPELLANT
[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
THIS MISCELLANEOUS FIRST APPEAL IS FILED
UNDER SECTION 37(1)(B) OF ARBITRATION AND
CONCILIATION ACT, 1996, AGAINST THE JUDGMENT AND
AWARD DATED 22.10.2011 PASSED IN ARBITRATION
CASE NO.10/2011 ON THE FILE OF THE PRINCIPAL
DISTRICT JUDGE, BELGAUM, REJECTING THE PETITION
FILED UNDER SECTION 34 OF ARBITRATION AND
CONCILIATION ACT.
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MFA NO.21813/2012:
BETWEEN:
SRI. NAGANAGOUDAS/O BASANAGOUDA HADIMANIAGE: 56 YEARS, OCC: AGRICULTURE,R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM. …APPELLANT
[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
THIS MISCELLANEOUS FIRST APPEAL IS FILED
UNDER SECTION 37(1)(B) OF ARBITRATION AND
CONCILIATION ACT, 1996, AGAINST THE JUDGMENT AND
AWARD DATED 22.10.2011 PASSED IN ARBITRATION
CASE NO.11/2011 ON THE FILE OF THE PRINCIPAL
DISTRICT JUDGE, BELGAUM, REJECTING THE PETITION
FILED UNDER SECTION 34 OF ARBITRATION AND
CONCILIATION ACT.
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MFA NO.21814/2012:
BETWEEN:
SRI. BASAPPA S/O RUDRAPPA SHINTRIAGE: 57 YEARS, OCC: AGRICULTURE,R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM. …APPELLANT
[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
THIS MISCELLANEOUS FIRST APPEAL IS FILED
UNDER SECTION 37(1)(B) OF ARBITRATION AND
CONCILIATION ACT, 1996, AGAINST THE JUDGMENT AND
AWARD DATED 22.10.2011 PASSED IN ARBITRATION
CASE NO.12/2011 ON THE FILE OF THE PRINCIPAL
DISTRICT JUDGE, BELGAUM, REJECTING THE PETITION
FILED UNDER SECTION 34 OF ARBITRATION AND
CONCILIATION ACT.
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MFA NO.21815/2012:
BETWEEN:
FADIGOUDAS/O SANGANAGOUDA PATIL & OTHERSHEIRS OF LATE SANGANAGOUDAS/O NINGANAGOUDA PATIL,AGE: 51 YEARS, OCC: AGRICULTURE,R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM. …APPELLANT
[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
THIS MISCELLANEOUS FIRST APPEAL IS FILED
UNDER SECTION 37(1)(B) OF ARBITRATION AND
CONCILIATION ACT, 1996, AGAINST THE JUDGMENT AND
AWARD DATED 22.10.2011 PASSED IN ARBITRATION
CASE NO.13/2011 ON THE FILE OF THE PRINCIPAL
DISTRICT JUDGE, BELGAUM, REJECTING THE PETITION
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FILED UNDER SECTION 34 OF ARBITRATION AND
CONCILIATION ACT.
MFA NO.21816/2012:
BETWEEN:
IMAM HUSSAIN S/O NABISA NADAFAGE: 66 YEARS, OCC: AGRICULTURE,R/O: HIREBAGEWADI,TALUK & DIST: BELGAUM. …APPELLANT
[BY SHRI SRINAND A.PACHHAPURE &SHRI RAJENDRA R. PATIL, ADVS.]
AND:
1. THE MANAGER, TECHNICAL &COMPTENT AUTHORITY,FOR LAND ACQUISITION,NATIONAL HIGHWAY AUTHORITY OF INDIA,PROJECT IMPLEMENTATION UNIT,SATTUR COLONY, VIDYAGIRI, DHARWAD.
2. THE SPECIAL DEPUTY COMMISSIONER,LAQ. R&R, MAJOR IRRIGATION PROJECTS,BELGAUM AND ARBITRATORFOR NATIONAL HIGHWAYAUTHORITY OF INDIA, BELGAUM. …RESPONDENTS
[BY SMT. P.R.BENTUR & H.R.BENTUR, ADVS. FOR R1]
THIS MISCELLANEOUS FIRST APPEAL IS FILED
UNDER SECTION 37(1)(B) OF ARBITRATION AND
CONCILIATION ACT, 1996, AGAINST THE JUDGMENT AND
AWARD DATED 22.10.2011 PASSED IN ARBITRATION
CASE NO.14/2011 ON THE FILE OF THE PRINCIPAL
DISTRICT JUDGE, BELGAUM, REJECTING THE PETITION
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FILED UNDER SECTION 34 OF ARBITRATION AND
CONCILIATION ACT.
THESE MISCELLANEOUS FIRST APPEALS
COMING ON FOR ADMISSION, THIS DAY, THE COURT
DELIVERED THE FOLLOWING: -
JUDGMENT
These appeals are by the claimants questioning
the correctness and legality of the judgment passed by
the District Judge, Belgaum, in Arbitration Case Nos.4,
5, 6, 7, 8, 9, 10, 11, 12, 13 & 14 of 2011 dated
22.10.2011, whereunder the awards passed by the 2nd
respondent herein and petition filed under Section 34 of
the Arbitration and Conciliation Act, 1996 (hereinafter
referred to Act for the sake of brevity) challenging the
said awards came to be affirmed.
2. This Court by order dated 13.12.2012
condoned the delay and matter was listed for admission
on 10.01.2013 and at the request of learned Advocates,
matter was listed for today. By consent, it is taken up
for final disposal.
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3. The grounds urged, pleas advanced and
arguments canvassed in these appeals are identical and
as such, these appeals are disposed of by this common
order.
4. I have heard the arguments of Shri Srinand
A. Pachhapure, learned counsel appearing along with
Rajendra R. Patil for appellants and Smt. P.R.Bentur,
learned counsel appearing for R1. Notice to R2 has
been dispensed with by order dated 27.11.2012, at the
risk of the appellant. The contentions raised by the
learned counsel appearing for the appellants are as
under: -
i) The trial Court has remanded the
matter to the 2nd respondent to
determine the market value of the
property, as per Section 3-G(7) of the
National Highways Act (Amendment),
1956, in as much as the said provision
had not been taken into consideration
by 2nd respondent while determining
the compensation and even in present
appeals same factual matrix appears.
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ii) There is no proper determination of the
market value of the acquired land and
the Arbitrator as well as the Court
below has not taken into consideration
the registered sale deed produced by
the appellants in support of their
contention seeking for enhancement of
compensation which related to an
abutting land, the potentiality of which
land was same as that of the lands
acquired.
iii) In identical circumstances, the very
same Court itself had accepted similar
contentions raised by the claimants
and as such, it has remanded the
matter back to the 2nd respondent for
computation or re-determination of
compensation and same has not been
followed in the present appeals and as
such, compensation has to be re-
determined.
5. On these grounds, the learned counsel for
the appellants seeks for setting aside the judgment and
award passed by the 2nd respondent which has been
affirmed by the trial Court and prays for allowing the
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appeal and awarding the compensation @ of
Rs.19,000/- per gunta, which was the market value
prevailing as on 14.08.2000 or in the alternate, he prays
for appeals being remanded to the 2nd respondent for
adjudication afresh, so that the claimants would have
ample opportunity to produce all other materials to
establish their claim and also substantiate their claim
for grant of award of compensation @ of Rs.19,000/- per
gunta.
6. Per contra Smt. P.R.Bentur, learned counsel
appearing for the 1st respondent would support the
judgment and award passed by the tribunal and she
would submit that trial Court has taken into
consideration as to how the sale deed relied upon by the
claimants could not have been taken as an yardstick to
determine the compensation in so far as the lands
belonging to the appellants/claimants acquired herein
are concerned, would also attract the same price. She
would also submit that the trial Court has taken note of
the judgment of the Apex Court in the case of
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M.P.HOUSING BOARD VS. PROGRESSIVE WRITERS AND
PUBLISHERS reported in 2009 (SCCR) 787 and the
judgment of the Division Bench of this Court in
H.M.SHANKARMURTHY VS. NATIONAL HIGHWAYS
AUTHORITY OF INDIA AND OTHERS reported in ILR 2010
Kar 3711, to arrive at a conclusion that an award
passed can only be set aside on anyone of the grounds
as indicated in Section 34(2) of the Arbitration Act, 1996
and contends that there is no error committed by the
trial Court either on facts or on law calling for
interference at the hands of this Court and as such, she
prays for dismissal of the appeal.
7. Learned counsel appearing for the appellants
has made available a chart which depicts the details of
claim made in each of the appeals and this fact having
not been disputed by the learned counsel appearing for
respondent, same is extracted herein below.
Case No. R.S.No. Measurement/Extent
Award Enhancedby 50%
weightageof Award
Nature ofthe Land
MFA21806/12
415 (1/2share)
4,453 Sq. Mts.(44.08 guntas)
2,21,536/- 3,32,304/- AgriculturalLand
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MFA21807/12
408 1,239 Sq. Mts.(12.26 guntas)
61,640/- 92,460/- AgriculturalLand
MFA21808/12
225/2(1/2
Share)
1,011 Sq. Mts.(10 guntas)
3,39,664/- Nil(Dismissed)
N/A Land
MFA21809/12
360 2,984 Sq. Mts.(29.54 guntas)
92,504/- 1,38,756/- AgriculturalLand
MFA21810/12
320/01 505 Sq. Mts. (5guntas)
1,26,672/- 1,98,008/- AgriculturalLand
463/03&
800 Sq. Mts.(7.92 guntas)
39,800/- 59,700/-MFA
21811/12
464/2 2470 Sq. Mts.(24.45 guntas)
1,22,882/- 1,84,323/-
Agricultural
Land
MFA21812/12
363/05(1/2
Share)
1,769 Sq. Mts.(17.51 guntas)
1,20,007/- 1,80,010/- AgriculturalLand
MFA21813/12
358/05 354 Sq. Mts.(3.5 guntas)
10,974/- 16,461/- AgriculturalLand
MFA21814/12
363/05 1,769 Sq. Mts.(17.51 guntas)
1,20,007/- 1,80,010/- AgriculturalLand
MFA21815/12
415 (1/2Share)
4,453 Sq. Mts.(44.08 guntas)
2,21,536/- 3,32,304/- AgriculturalLand
MFA21816/12
463/02 360 Sq. Mts.(3.56 guntas)
17,910/- 26,865/- AgriculturalLand
8. Having heard the learned Advocates
appearing for the parties and on perusal of the
judgment passed by the trial Court and also the award
passed by the 2nd respondent, I am of the considered
view that following points would arise for my
consideration.
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“i) Whether the awards passed by the 2nd
respondent suffers from any patent
errors which called for interference at
the hands of the trial Court in exercise
of its appellate power under Section 34
of the Act and same having not been
exercised should it be exercised by this
Court?
ii) If not, whether the trial Court was
justified in not interfering with the
award passed by 2nd respondent and
whether it was justified on facts and
also on law in affirming the said
awards and dismissing the petitions
filed under Section 34?
iii) What order?”
BRIEF BACKGROUNDS:
9. Appellants were the claimants before the 2nd
respondent. In view of a preliminary notification issued
under Section 3–A(1) of the National Highways
(Amendment) Act, 1997, published in the Gazette of
India dated 10.07.2001 for formation of 4–6 lane
National Highway, the lands of the claimants came to be
: 19 :
acquired by the National Highway Authority of India.
Pursuant to the said acquisition, awards came to be
passed by the Competent Authority and compensation
as enumerated in column No.4 of the table extracted
herein above, came to be awarded in favour of each of
the claimants.
10. Not being satisfied with the compensation
awarded, appellants/claimants filed an application
under Section 3-G of the National Highways
(Amendment) Act, 1997, before the 2nd respondent
herein, contending that the award passed by the
Competent Authority is on the lower side, not
commensurate with the prevailing market value of the
land amongst other grounds. The 2nd respondent after
recording the evidence produced by both the parties and
after affording opportunities of granting a personal
hearing to all the parties, an order came to be passed on
05.02.2011, 29.01.2011, 29.01.2011, 29.01.2011,
29.01.2011, 29.01.2011, 29.01.2011, 29.01.2011,
29.01.2011, 05.02.2011 and 29.01.2011 respectively
: 20 :
and enhanced the compensation by 50% weightage as
enumerated in column No.5 of the table extracted
herein above.
11. It is to be noticed at this juncture itself that
in so far as M.F.A. No.21805/2012 is concerned, appeal
filed by the claimant came to be rejected by taking note
of the fact that the land acquired and compensation
determined was by a consent award and the
compensation that had been awarded by the 2nd
respondent did not call for interference.
12. Aggrieved by these orders passed by the 2nd
respondent, claimants filed a petition under Section 34
of the Act, 1996, and sought for enhancement of
compensation by reiterating their contentions raised by
them before the 2nd respondent. Trial Court having
noticed the contentions raised which are identical and
similar contentions now raised in the present appeals
held that the claimants do not satisfy the ingredients of
Section 34(2) of the Act to entertain their claim and even
: 21 :
otherwise on merits it was noticed that full opportunity
was extended and utilised by the claimants before the
Competent Authority as well as before the 2nd
respondent herein. It also held that 2nd respondent has
taken note of the average market value of the lands for
the year 2001-02, in respect of different classes of
lands, their situation and potentialities of the lands
located in adjoining villages would be applicable or not,
as also the sale deed produced by the claimants on the
basis of which it was contended that market value as
found in the sale deed as 14.08.2000 should be the
yardstick and found that it is not having same
potentiality and it is sale of a plot and concluded that
awards in question not being opposed to public policy
by relying upon the judgments of the Hon’ble Apex
Court as well as Division Bench of this Court referred to
supra to reject said contentions and affirmed the orders
passed by 2nd respondent. These facts are not in
dispute. In this background, now, let me consider the
points formulated herein above: -
: 22 :
RE. POINT NO.1 & 2:
13. These two points being inter-linked with
each other and discussion on these two points are likely
to overlap with each other, they are taken up together
for adjudication.
14. At the outset, it can be noticed that the
Competent Authorities under the National Highways
(Amendment) Act, on acquiring the land have
determined the compensation payable to each of the
land holders whose land came to be acquired by
awarding compensation. The average amount
determined to each of the land holders is around
Rs.5,025.77 per gunta. Being aggrieved by the said
determination of compensation and not being satisfied
with the market value so determined, it came to be
challenged by them under Section 3-G(5) of the National
Highways Act, 1956, before the Special Deputy
Commissioner i.e., 2nd respondent herein, contending
inter alia that transaction and surrounding development
costs Rs.10,000/-, total Rs.29,000/- per gunta is to be
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given and the market value has to be determined
accordingly. 2nd respondent after considering the
evidence tendered by both the parties and after hearing
the learned Advocates appearing for the parties and on
perusal of the entire material available on record,
opined as under: -
Here the point which needs to be noted
is that the average market value for the
lands located near a village and lands
located on the National Highway cannot be
the same. The government through the Sub-
Register has prescribed that additional 50%
weightage needs to be given to the lands
which are abutting the National Highway.
This however has not been taken into
cognizance of by the Competent Authority,
NHAI. As regarding considering the average
market value of the other villages, The
Hon’ble Supreme Court in AIR 1999 SC 317
has held that “Situation and potentialities
of lands in adjoining villages are different
and the same cannot be relied upon.” It is
seen that different villages lie at different
distance and have different potentialities and
therefore the rates of lands in the village in
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question cannot be made same. The
advocate for petitioner has requested to
consider sale deed Sy. No.220/6 extent 101
Sqm. Dated 14.08.2000 of Hirebagewadi,
registered for Rs.19,000/ gunta to fix the
value of suit property. On perusal of the
village map of Hirebagewadi village the suit
properties are located near Siddanavabi and
are abutting siddanabavi. Where as Sy.
No.220 is nearer to Hirebagewadi village and
as the registered property and suit
properties lie at different distance and have
different potentialities. I disagree to equate
the same value to the lands acquired by the
“NHAI”.
15. However, the claim petitions came to be
allowed in part by awarding additional 50%
compensation for the lands acquired and interest of 9%
per annum was also ordered to be paid on the
additional award amount. A perusal of the said order
would clearly indicate that 2nd respondent has taken
into consideration, as to how the sale deed dated
14.08.2000 relied upon by the claimants cannot form
: 25 :
the basis or foundation for applying the same to the
lands of the appellants for acquired determination of
compensation. The reasons given by the 2nd
respondent, as extracted herein supra, would clearly
indicate that these two lands are different and
independent and the said sale deed relied upon by the
claimants cannot be used as an yardstick for the
purposes of determination of compensation in respect of
the lands belonging to the claimants/appellants
acquired. The said finding arrived at by the 2nd
respondent which is based on proper evaluation of the
materials and also evidence tendered by the parties
cannot be construed as suffering from any infirmities
either on facts or on law.
16. Reiterating the said contentions, petition
under Section 34 of the Act came to be filed before the
District Judge inter alia contending that awards passed
are erroneous, compensation awarded by the Competent
Authority is on lower side and enhanced by the
Arbitrator are not inconsonance with the material
: 26 :
evidence placed on record and as such, it requires to be
enhanced. While considering the said contentions, trial
Court examined the scope and power of Section 34 of
the Arbitration Act, 1996 and by taking note of the
contours defined by the Apex Court as well as by the
Division Bench of this Court in the judgments referred
to supra rejected the petition. Though said judgments
have been noticed by the trial Court at the cost of
repetition, the same requires to be noticed by this
Court, since learned counsel appearing for the
claimants has also reiterated the contentions before this
Court which were raised before the trial Court
contending that awards passed in question are opposed
to public policy and as such, the trial Court ought to
have interfered with said awards in exercise of the
appellate power and set aside the awards passed under
Section 34 of the Act and prays exercising of said power
by this Court. The Division Bench of this Court had an
occasion to consider similar question in the matter of
H.M.SHANKARMURTHY VS. NATIONAL HIGHWAY
: 27 :
AUTHORITIES OF INDIA AND OTHERS reported in ILR
2010 KAR 3711 and it has been held under: -
“13. A provision for setting aside an
award contending that the award is not
sustainable in law on any one of the grounds
as indicated above can never be construed
as a provision enabling the land owner
seeking for enhancement of the
compensation amount as determined by the
Arbitrator. The Learned Judge of the
District Court has rightly rejected the
application under Section 34 of the
Arbitration and Conciliation Act, 1996. The
application itself was not tenable. The
appeal also is equally not tenable and even
otherwise without any merit.”
17. This Court rejected the appeal which was
filed under Section 37 of the Act, wherein the award
passed by the Competent Authority under the National
Highways Act by affirming the award passed by the
Deputy Commissioner who had enhanced the
compensation and appeal filed thereon before this Court
came to be rejected. On the ground that claimant was
: 28 :
not able to demonstrate before this Court that award is
not sustainable or any of the grounds enumerated
under Section 34 of Arbitration Act, 1996. The same
factual matrix is appearing in all these present appeals.
If an award made by the Arbitrator is vitiated on
account of either over looking the contents of a
document brought to his notice or ignoring it, then it
can be held or construed that there has been non-
examination of material evidence available on record
and in such an event, the award would have called for
modification, as otherwise, it cannot be construed as
vitiated or opposed to public policy on account of non-
consideration of material available on record. It is
precisely this aspect which came to be construed in
KONKAN RAILWAY CORPORATION LIMITED, KARWAR,
UTTAR KANNADA DISTRICT VS. SPECIAL LAND
ACQUISITION OFFICER-II, MANGALORE SUPER THERMAL
POWER PROJECT, MULKI, DAKSHINA KANNADA
DISTRICT AND ANOTHER reported in 2004(1) KAR. L.J.
210, wherein their Lordships considered as to when an
: 29 :
award should be construed as opposed to public policy,
namely when there is non consideration of material
evidence available on record and only then it would
come within the mischief of being opposed to ‘public
policy’ as otherwise it would not.
18. In this background, when the facts on hand
are examined, it can be noticed that the claimants
contention is that potentiality of the land acquired for
the purposes of formation of National Highway was not
considered by the Competent Authority as well as by the
2nd respondent. 2nd respondent while enhancing the
compensation by awarding additional 50%
compensation for the lands acquired, has rightly come
to the conclusion that the situation and potentialities of
lands in adjoining villages are different from the land
covered under sale deed dated 14.08.2000 and same
cannot be relied upon by relying upon the judgment of
the Apex Court reported in AIR 1999 SC 317. The said
finding is based on sound appreciation of facts and
applying the dicta laid down by the Apex Court, yet
: 30 :
another factor which requires to be noticed is that sale
deed dated 14.08.2000 is relating to R.S. No.220/6 of
Hirebagewadi village sold for a consideration of
Rs.19,000/- per gunta and it was sought to be
established or made as a basis by the claimants to seek
for the same amount of compensation being awarded to
them. Arbitrator on perusal of the village map of
Hirebagewadi village found that the acquired lands are
found to be nearer to Siddanabavi village and land in
R.S. No.220/6 is nearer to Hirebagewadi village. Thus,
taking into consideration, the distance between the
acquired lands and Survey No.220/6 of Hirebagewadi,
he held that sale deed sought to be relied upon by the
claimants cannot accept. At this juncture, it requires to
be noticed that what was acquired is an agriculture
land and the extent of land covered is around 4453
square metres or 44.08 guntas. Whereas, the land
covered under the sale deed dated 14.08.2000 that is
R.S. No.220/6 which was said to have been sold for
Rs.19,000/- per gunta, the extent covered is only 101
: 31 :
square metres., which is less than a gunta. As such,
the smaller chunk of the land which has been sold
under the said sale deed dated 14.08.2000 cannot form
the basis or it cannot be construed to be the yardstick
for determining the compensation, in respect of the
larger area which has been acquired and that too
agricultural lands.
19. Though Shri Srinand A. Pachhapure, learned
counsel appearing for the claimants has made a valiant
attempt to persuade this Court that finding recorded by
the 2nd respondent that lands of the appellants which
are acquired is not abutting, Siddanabavi village and it
is an erroneous finding on the premise that there is no
such village called as Siddanabavi and it is non existent
in the village map, I am not inclined to accept the said
submission or contention for two reasons: -
i) The claimants were fully aware as to
what was the finding that was recorded
by the 2nd respondent, when he
enhanced a compensation and passed
the orders. Nothing prevented them to
: 32 :
demonstrate this fact before the trial
Court when they filed a petition under
Section 34(2) of the Act, 1996,
challenging the said award. However,
no such ground was urged in this
regard before the District Court.
ii) Even otherwise, even in the grounds
urged before this Court in the present
appeal memorandums, there is no
such contentions raised or grounds
urged. For the first time, in this appeal
which is virtually a second appeal, a
new ground is sought to be put forward
and same is impermissible.
Hence, said contention raised by the learned counsel for
the appellants cannot be entertained and it stands
rejected.
20. Last but not the least, an award passed by
the Arbitrator which can be the subject matter of
challenge before the District Court can be challenged or
in other words can be entertained by said Court only on
the grounds enumerated indicated in Section 34(2) and
: 33 :
none of these grounds are available to the claimants or
they are attracted to facts on hand, since the claimants
had proper notice of the appointment of Arbitrator; they
had availed full opportunity before the Arbitrator; it was
a dispute to be dealt as contemplated under Section 3-G
of National Highways Act; there was no complaint
regarding composition of the Arbitrator or tribunal; no
complaint with regard to the procedure adopted by the
Arbitrator was made at any point of time; and, the
Arbitrator has taken into consideration the statutory
provision, namely Section 3-G(7) into consideration,
namely clauses (A) to (D) for enhancing the
compensation and as such, the learned trial judge has
rightly come to the conclusion, the award passed by the
Arbitrator cannot be interfered with considering the
scope of Section 34 of the Act, 1996,. The said finding
recorded by the trial Court while affirming the awards
passed by the 2nd respondent cannot be held or
construed as suffering from infirmities either on facts or
on law calling for interference, by this Court in exercise
: 34 :
of Appellate powers. Hence, point Nos.1 and 2
formulated herein above, deserves to be answered
against the appellants/claimants and in favour of the
1st respondent.
RE. POINT NO.3:
21. For the reasons aforestated, following order
is passed.
ORDER
i) Appeals are hereby dismissed.
ii) The judgment passed by the Principal
District Judge, Belgaum, in Arbitration
Case Nos.4, 5, 6, 7, 8, 9, 10, 11, 12, 13
& 14 of 2011 dated 22.10.2011
rejecting the petition filed under
Section 34 of the Arbitration Act, 1996,
are hereby affirmed.
iii) Parties to bear their costs.
SD/-JUDGE
Rsh