National Highways Authority of India vs SRI U M ABDUL KHADER
- Court
- Karnataka High Court
- 1 -
HC-KAR
NC: 2026:KHC:53847-DB
COMAP No. 78 of 2023
CNR: KAHC010108762023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 28 DAY OF SEPTEMBER, 2026
PRESENT
THE HON'BLE MRS. JUSTICE ANU SIVARAMAN
AND
THE HON'BLE MR. JUSTICE K.S.BHARATH KUMAR
COMMERCIAL APPEAL NO.78 OF 2023
BETWEEN:
1. NATIONAL HIGHWAYS AUTHORITY OF INDIA
PROJECT IMPLEMENTATION UNIT-MANAGALORE,
DOOR NO.3-29, “BETHEL”,
THARETHOTA, NEAR PUMPWELL (NH-66),
MANGALORE-575002,
REP BY ITS THE PROJECT DIRECTOR,
H.S LINGEGOWDA.
…APPELLANT
(BY SRI. PRAKASH V ANGADI., ADVOCATE)
AND:
1. SRI. U.M ABDUL KHADER
S/O LATE UDYAVAR MOIDEEN KUNHI,
R/AT WHITE HOUSE, K.C ROAD,
TALAPADY VILLAGE,
MANGALURU TALUK-574253.
2. THE ARBITRATOR AND DEPUTY COMMISSIONER
D.K. DISTRICT, MANGALORE-575001.
3. THE SPECIAL LAND ACQUISITION OFFICER AND
COMPETENT AUTHORITY, NHAI,
N.G.O.S. BUILDING, MINI VIDHANA SOUDHA,
COMPOUND, MANGALURU-575001.
…RESPONDENTS
Digitally
signed by
RAKSHA
Location:
high court
of
karnataka
- 2 -
HC-KAR
NC: 2026:KHC:53847-DB
COMAP No. 78 of 2023
CNR: KAHC010108762023
(BY SRI. B. JINENDRA KUMAR, ADVOCATE FOR R1
SRI. BYREGOWDA N., AGA FOR R2
V.O.D 10/01/2024 NOTICE TO R3 D/W)
THIS COMAP IS FILED UNDER SECTION 13(1)(a) OF
COMMERCIAL COURT ACT, PRAYING TO SET ASIDE THE
JUDGMENT DATED: 06.12.2022 IN THE SUIT A.P. NO.23/2022
PASSED BY THE HON’BLE IV ADDL. DISTRICT JUDGE,
COMMERCIAL COURT, D.K.MANGALORE, CONSEQUENTLY SET
ASIDE THE ARBITRAL AWARD/ORDER IN NO.C.DIS.ARB (2) NH
ND
LAQ.CR.92/2017-18 DATED:26.10.2021 PASSED BY THE 2
RESPONDENT. INSOFAR AS THE ENHANCEMENT MADE BY THE
ND
2 RESPONDENT AT THE RATE OF RS.1,12,000/- PER CENT
AND ALLOW THE APPEAL WITH COST AND GRANT SUCH OF
THE RELIEF AS THIS HON’BLE COURT DEEMS FIT TO GRANT IN
THE CIRCUMSTANCES OF THIS CASE, IN THE INTEREST OF
JUSTICE.
THIS APPEAL, COMING ON FOR ORDERS, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN
and
HON'BLE MR. JUSTICE K.S.BHARATH KUMAR
- 3 -
HC-KAR
NC: 2026:KHC:53847-DB
COMAP No. 78 of 2023
CNR: KAHC010108762023
ORAL JUDGMENT
(PER: HON'BLE MRS. JUSTICE ANU SIVARAMAN)
1. This appeal is preferred by the National Railway
Authority of India against the order of the IV Additional
District and Sessions Judge, Dakshina Kannada District,
Mangaluru in Arbitration Petition No.23/2022 dated
06.12.2022, wherein the arbitration proceedings preferred
by the appellant has been dismissed and the award dated
26.10.2021 passed by the Arbitrator and the Deputy
Commissioner, Dakshina Kannada District, Mangaluru has
been affirmed.
2. Learned counsel for the appellant submits that the
question raised in this appeal is with regard to the
applicability of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 (for short 'the Act, 2013') to the
acquisition, which was initiated in the year 2011, by a
preliminary notification dated 08.02.2010 followed by a
- 4 -
HC-KAR
NC: 2026:KHC:53847-DB
COMAP No. 78 of 2023
CNR: KAHC010108762023
final notification dated 04.02.2011. It is submitted that
the issue raised stands squarely covered by the judgment
of the Co-ordinate Bench of this Court dated 13.01.2025
passed in MFA No.5128/2024, as also, by the judgment
dated 23.03.2026 passed in Commercial Appeal
No.555/2024.
3. Learned counsel would contend that considering the
provisions of the National Highways Act, 1956, as well as
the Act, 2013 and the Land Acquisition Act, 1894, the
Co-ordinate Bench of this Court in M.F.A.No.5128/2024
has held that since the acquisition was initiated in 2011
and the award was passed before 31.12.2014, the award
of the Arbitrator to the extent of calculating the
compensation as per the provisions of the Act, 2013 is
untenable and is liable to be set aside. Therefore, the
judgment of the IV Additional District and Sessions Judge,
Dakshina Kannada, as well as the arbitral award, stood set
aside.
- 5 -
HC-KAR
NC: 2026:KHC:53847-DB
COMAP No. 78 of 2023
CNR: KAHC010108762023
4. It is submitted that the notification in the instant
case is the very same notification and that the Order dated
26.10.2021, in the instant case, also proceeds to calculate
the entire compensation as per the provisions of the Act,
2013.
5. It is contended by learned counsel for the appellant
that the parties would be entitled only to the calculation of
the land value and solatium in terms of the Act, 2013 and
not for all the benefits under the said Act in terms of the
decision of the Hon'ble Apex Court in the case of Union of
India and Another Vs. Tarsem Singh and Others
reported in (2019) 9 SCC 304 . This aspect of the matter
has been clearly considered by the Co-ordinate Bench of
this Court in the judgment passed in MFA
No.5128/2024 .
6. Having considered the contentions advanced on
either side and in view of the fact that the appeals arise
from an acquisition initiated by a preliminary notification
- 6 -
HC-KAR
NC: 2026:KHC:53847-DB
COMAP No. 78 of 2023
CNR: KAHC010108762023
issued on 08.02.2010 and a final notification issued on
04.02.2011 and since the award was passed on
20.08.20211 by the Special Land Acquisition Officer, we
are of the opinion that findings of the Co-ordinate Branch
of this Court in MFA No.5128/2024 are applicable to the
facts of the present case as well.
7. We notice that the findings of the Hon'ble Apex Court
in the decision of Union of India and Another Vs.
Tarsem Singh and Others, case (supra) especially at
paragraph No.48 thereof has been clearly taken note of by
the Co-ordinate Bench of this Court and it has been held
that the award of the Arbitrator to the extent of calculating
the compensation as per the provisions of the Act, 2013
without reference to the finding of the Hon'ble Apex Court,
is incorrect.
8. In the above view of the matter, following the said
reasoning, we are of the opinion that this appeal is also to
be allowed.
- 7 -
HC-KAR
NC: 2026:KHC:53847-DB
COMAP No. 78 of 2023
CNR: KAHC010108762023
9. In the result:-
(i) The appeal is accordingly allowed.
(ii) The judgment and decree dated 06.12.2022
passed in the Arbitration Petition No.23/2022 as
well as the Arbitral Award No.C.DIS.ARB (2)
NH.LAQ.CR.92/2017-18 dated 26.10.2021 of the
Deputy Commissioner, Mangaluru shall stand
set aside.
10. All other issues are left open.
Sd/-
(ANU SIVARAMAN)
JUDGE
Sd/-
(K.S.BHARATH KUMAR)
JUDGE
GH
List No.: 1 Sl No.: 22