Madhya Pradesh High Court

Scope of Section 37 appeal is limited to verifying Section 34 compliance without re-appreciating evidence.

Radha Bai vs Indian National High Ways

Madhya Pradesh High CourtJUDGMENT: June 22, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellant’s land (0.56 hectare in Village Panagar, Jabalpur) was acquired by the Sub-Divisional Officer under Section 3A of the National Highways Act, 1954, for the purpose of widening National Highway No. 7

Source reference: para. 3

The competent authority awarded compensation of Rs. 5,14,250/-. Dissatisfied with the quantum, the appellant filed an application under Section 3G(5) of the National Highways Act, 1956, before the Arbitrator/Commissioner, Jabalpur, who dismissed the claim on 13.04.2016 for lack of documentary evidence

Source reference: para. 4

The appellant subsequently challenged this dismissal under Section 34 of the Arbitration and Conciliation Act, 1996, before the 15th District Judge, Jabalpur, who rejected the application on 06.01.2024

Source reference: para. 2

The appellant then moved the High Court under Section 37 of the 1996 Act

Source reference: para. 2
02

Issues

1. Whether the findings of the Arbitrator and the District Court were perverse or suffered from jurisdictional errors regarding the quantification of compensation

Source reference: para. 5

2. Whether the High Court, exercising jurisdiction under Section 37 of the Act of 1996, can reappreciate evidence or adjudicate on the quantum of compensation

Source reference: para. 8–9
03

Law Applied

The court applied Section 34 and Section 37 of the Arbitration and Conciliation Act, 1996, which restrict judicial intervention to specific grounds such as fraud, bias, or violation of natural justice

Source reference: para. 10

It followed the precedent in Mcdermott International Inc vs. Burn Standard Co. Ltd. (2006), which limits the court's role to supervision and ensuring fairness rather than correcting arbitral errors

Source reference: para. 10

It further relied on MMTC Limited vs. Vedanta Limited (2019) and Punjab State Civil Supplies Corp. vs. Sanman Rice Mills (2024), establishing that Section 37 jurisdiction is narrower than Section 34 and does not permit independent assessment of merits or reappraisal of evidence

Source reference: para. 11, 14
04

Reasoning

The High Court observed that the scope of Section 37 is extremely limited and does not permit the substitution of the court's view for that of the arbitrator

Source reference: para. 8

The court noted that the lower court had properly considered every point raised by the appellant under Section 34

Source reference: para. 9

The appellant failed to demonstrate any patent legality or perversity that would fall under the restricted grounds of Section 34(2) or the "public policy" exception

Source reference: para. 9

The court reasoned that disputes regarding the assessment of compensation based on market price guidelines are factual determinations that fall outside the supervisory ambit of the Act

Source reference: para. 9

Citing Dyna Technology Pvt. Ltd. (2019), the court emphasized that judicial interference in facts frustrates the commercial wisdom of alternative dispute resolution

Source reference: para. 13
05

Holding

The High Court held that the award passed by the Arbitrator and the order of the Commercial Court were in consonance with the scheme of the 1996 Act and did not exceed jurisdiction or violate public policy

The court answered that it cannot interfere with concurrent findings merely because an alternative view is possible

Source reference: para. 11–12

Consequently, the appeal was dismissed, and no costs were awarded

Source reference: para. 16
Madhya Pradesh High Court

Original Court PDF

Radha BaivsIndian National High Ways

Madhya Pradesh High Court · June 22, 2026

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