NATIONAL HIGHWAYS AUTHORITY OF INDIA, vs THE DISTRICT COLLECTOR AND
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:56395-DB
MFA No. 6715 of 2026
CNR: KAHC010635762026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 8 DAY OF OCTOBER, 2026
PRESENT
THE HON'BLE MR. JUSTICE D K SINGH
AND
THE HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN
MISCELLANEOUS FIRST APPEAL NO. 6715 OF 2026 (AA)
BETWEEN:
NATIONAL HIGHWAYS AUTHORITY OF INDIA,
PROJECT IMPLEMENTATION UNIT-RAMANAGAR
NEAR BASAVANAPURA (RAMADEVARAPADA),
RAMANAGAR - 562 128,
REP. BY ITS GENERAL MANAGER (TECH.)
AND PROJECT DIRECTOR,
PRESENTLY HAVING OFFICE AT :
#106, GROUND FLOOR, KANDAYA BHAVAN,
RAMANAGARA-562 159.
…APPELLANT
Digitally
signed by
VASANTHA
KUMARY B
K
Location:
HIGH
COURT OF
KARNATAKA
(BY SMT. SRUTI C, ADVOCATE)
AND:
1. THE DEPUTY COMMISSIONER AND
ARBITRATOR,
NH-275, RAMANAGAR DISTRICT,
RAMANAGAR - 562 128.
2.
LEGAL HEIRS OF LATE SIDDAPPAJI,
S/O GANGANNA.
2(a) SMT. NARASAMMA,
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MFA No. 6715 of 2026
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W/O LATE SIDDAPPAJI,
AGED ABOUT 56 YEARS.
2(b) SMT. MANJULA,
D/O LATE SIDDAPPAJI,
AGED ABOUT 32 YEARS.
2(c) SRI GANGARAJU,
S/O LATE SIDDAPPAJI,
AGED ABOUT 30 YEARS.
ALL R/AT KENCHANAKUPPE VILLAGE,
BIDADI HOBLI AND POST,
RAMANAGAR TALUK - 562 109.
…RESPONDENTS
THIS MFA IS FILED U/S.37(1)(c) OF THE ARBITRATION
AND CONCILIATION ACT, 1996, AGAINST THE ORDER DATED
04.06.2026 PASSED IN A.P.NO.457/2022 ON THE FILE OF THE
PRL. DISTRICT AND SESSIONS JUDGE, RAMANAGARA,
DISMISSING THE PETITION FILED U/S.34 OF THE
ARBITRATION AND CONCILIATION ACT 1996 R/W ORDER 7
RULE 1.
THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE D K SINGH
and
HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN
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HC-KAR
NC: 2026:KHC:56395-DB
MFA No. 6715 of 2026
CNR: KAHC010635762026
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE D K SINGH)
Heard Smt. Sruti C., learned counsel appearing for the
appellant - National Highways Authority of India.
2. The challenge before this Court is the judgment and
order dated 04.06.2026 passed under Section 34 of the
Arbitration and Conciliation Act, 1996, in A.P.No.457/2022
challenging the order passed by the Arbitrator dated
12.04.2022 passed by respondent No.1 in proceedings bearing
No.LAQ(A)/NH-275/CR/317/2017-18.
3. The lands of respondent No.2 measuring an extent of
3939 sq.meters in Sy.No.197, situated in Kenchanakuppe
Village, Ramanagar Taluk, was acquired for the widening of
National Highway 275. For the acquisition of the said land inter
alia a preliminary notification under Section 3(A) of the National
'the N.H. Act'
Highways Act, 1956 (for brevity ) was issued on
01.02.2016 and thereafter, the final notification under Section
3(D) of the NH Act was issued on 23.09.2016. The award of
compensation was determined at Rs.79,00,000/- per acre and
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MFA No. 6715 of 2026
CNR: KAHC010635762026
compensation of a sum of Rs.1,63,60,204/- for the land
acquired was paid to the owner of the land i.e., respondent
No.2. Being not satisfied with compensation so awarded, the
respondent No.2/owner challenged the same, before the
Deputy Commissioner, who was the designated Arbitrator
under the provisions of N.H. Act. On the basis of the pleadings
of the parties, the following points were framed by the learned
Arbitrator for consideration:-
"1. Whether the petitioner proves, prima facie, that
the order passed by respondent No.1 in Case
No.LAQ(A)/NH- 275/CR/317/2017-18 dated
12.04.2022 is not just and proper?
2. If so, whether the Hon'ble Court can interfere with
the order passed by Respondent No.1?
3.What order?"
4. The Arbitrator/Deputy Commissioner on appreciation of
the evidence, recorded that 2nd respondent's property was
situated in Kenchanakuppe Village, Ramanagar Taluk, and the
said property falls within the jurisdiction of the Bidadi Town
Municipal Council. The Kenchankuppe Village was brought
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MFA No. 6715 of 2026
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within the limits of Bidadi Town Municipal Council with effect
from 20.06.2016 i.e., after the date of preliminary notification.
The 2nd respondent's property was situated in an area where
residential area, industrial and commercial establishments have
been developed. The land is highly valuable because of its
potential use for residential and commercial purpose. The
Arbitrator/Deputy Commissioner having considered the
transactions of the preceding three years of the adjacent lands
and taking into consideration the guidelines value, had fixed
the compensation for the lands of the 2nd respondent.
5. Considering these facts, the compensation had been
enhanced from Rs.79,00,000/- per acre to Rs.1,58,00,000/-
per acre. This order passed by the Arbitrator came to be
challenged by the National Highways Authority of India under
Section 34 of the Arbitration and Conciliation Act, 1996, (for
'the AC Act'
brevity ) before the Principal District and Sessions
Judge, Ramanagar. The Court below, having considered the
scope of Section 34(2)(b)(ii) of the AC Act as well as the
reasoning adopted by the Arbitrator, has dismissed the appeal
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MFA No. 6715 of 2026
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filed under Section 34 by the National Highways Authority of
India.
6. We have gone through the award, as well as the order
passed under Section 34(2)(b) of the Act. What is the fair
compensation to be awarded for the lands acquired, is the
question of fact and not the question of law. The learned
Arbitrator/Deputy Commissioner having considered the
potential of the land use and the guidelines value, has fixed the
compensation from Rs.79,00,000/- to Rs.1,58,00,000/- per
acre.
7. After formation of the Bidadi Township, several residential
and commercial establishments have come up in the
surrounding areas and that factor has weighed in the mind of
the Arbitrator, to enhance the compensation.
8. We are of the view, that none of the grounds as
enumerated under Section 34 of the NH Act, are available in
the present case, which would warrant us to interfere with the
impugned judgment and award dated 04.06.2026 passed under
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MFA No. 6715 of 2026
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Section 34 of the Arbitration and Conciliation Act, 1996, in
A.P.No.457/2022, so also the order passed by the Arbitrator
dated 12.04.2022 passed by respondent No.1 in proceedings
bearing No.LAQ(A)/NH-275/CR/317/2017-18. Therefore, we
dismissed.
find no merit in this appeal, which is why it is
9. Pending interlocutory application(s) if any, stand disposed
of.
Sd/-
(D K SINGH)
JUDGE
Sd/-
(H.SHANTHI BHUSHAN)
JUDGE
NG
CT:SN
List No.: 1 Sl No.: 4