Karnataka High Court
MFA/3663/2026 of NATIONAL HIGHWAYS AUTHORITY OF INDIA Vs SHRI. JAYANTH .S on 21 September 2026
CNR: KAHC010351592026 NC: 2026:KHC:51761-DB MFA No. 3663 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF SEPTEMBER, 2026 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN MISCELLANEOUS FIRST APPEAL NO. 3663 OF 2026 (AA)
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 21ST DAY OF SEPTEMBER, 2026
PRESENT
THE HON'BLE MR. JUSTICE D K SINGH
AND
THE HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN
MISCELLANEOUS FIRST APPEAL NO. 3663 OF 2026 (AA)
BETWEEN:
1.
NATIONAL HIGHWAYS AUTHORITY OF INDIA
PROJECT IMPLEMENTATION UNIT
DOOR NO.3-29, BETHEL
THARETHOTA
NEAR PUMP WELL (NH-66)
MANGALURU-575 005
REPRESENTED BY TIS
GM (TECH) AND PROJECT DIRECTOR
SRI ABDULLA JAVED AZMI
…APPELLANT
(BY SRI PADMANABHA HOLLA S, ADVOCATE)
AND:
1.
SHRI JAYANTH S
S/O SHRI GANAPATHI JOGI
MAJOR
RESIDING AT NO.3-12/21
SRI NIDHI
KUNJATHBAIL CROSS ROAD
GANDHINAGAR
MANGALURU TALUK
DAKSHINA KANNADA-575 015
Digitally signed
by VASANTHA
KUMARY B K
Location: HIGH
COURT OF
KARNATAKA
HC-KAR
2.
THE ARBITRATOR AND
DEPUTY COMMISSIONER
DAKSHINA KANNADA DISTRICT
MANAGALURU-575 001
3.
THE COMPETENT AUTHORITY AND
SPECIAL LAND ACQUISITION OFFICER
MANAGALURU
KARANTAKA STATE EMPLOYEE ASSOCIATION
CLOCK TOWER
HAMAPNAKATTA
MANGALURU
D.K. DISTRICT-575 001
…RESPONDENTS
(R1 IS PLACED EX PARTE V/O DATED 21.09.2026; R2 & 3 ARE SERVED & UNREPRESENTED)
THIS MFA IS FILED UNDER SECTION 37(1)(c) OF THE
ARBITRATION AND CONCILIATION ACT, 1996, AGAINST THE
ORDER DATED 04.03.2026 PASSED IN ARBITRATION PETITION
NO.108/2025 ON THE FILE OF IV ADDITIONAL DISTRICT AND
SESSIONS JUDGE, D.K., MANGALURU, DISMISSING THE
PETITION FILED UNDER SECTION 34 OF THE ARBITRATION
AND CONCILIATION ACT.
THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
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CORAM: HON'BLE MR. JUSTICE D K SINGH
and
HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN
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ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE D K SINGH)
1. The present appeal has been filed under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 impugning the order dated 04.03.2026 passed in Arbitration Petition No.108/2025, which was filed by the appellant-National Highways Authority of India (NHAI) challenging the order dated 01.04.2025 passed by the Arbitrator (N.H) and Deputy Commissioner, D.K. District, Mangaluru in No. C.DIS.ARB(4)NH LAQ.CR.44/2024-25 under Section 3G(5) of the National Highways Act, 1956.
2. The land of the respondent No.1 was acquired as per the provisions of the National Highways Act, 1956 for which, the Preliminary and Final Notifications under Sections 3A and 3D were issued on 16.03.2016 and 15.03.2017 respectively. The award was passed under Section 3G by the Special Land Acquisition Officer on 22.01.2021 in respect of 18 sq.mts and another award under Section 3G came to be passed on
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26.05.2022 in respect of another extent of land i.e., 427 sq.mts. both belonging to the respondent No.1 situated in Survey No.130/3 of Thiruvail Village, Mangaluru Taluk, Dakshina Kannada District. The respondent No.1 was not satisfied with the amount of compensation awarded under the aforesaid two awards and hence, he approached the designated Arbitrator i.e., the Deputy Commissioner.
3. Though separate awards were passed in respect of the aforesaid two extent of lands, but a common application was filed on 24.09.2024 seeking enhancement of compensation.
4. Section 34(3) of the Arbitration and Conciliation Act, 1996 provides that the Limitation Act, 1963 would apply to the arbitration proceedings also. Under Article 137 of the Schedule attached to the Limitation Act, 1963, which is a residual Article, three years limitation is provided from the date when the right to apply accrues, which is not provided elsewhere in the Schedule.
5. The first award is dated 22.01.2021. However, the application under Section 3G(5) of the National Highways Act,
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1956 came to be filed on 24.09.2024 i.e., after completion of three years period from the date of the award and therefore, the claim made by the respondent No.1 in respect of 18 sq.mts. of land was barred by limitation. The Trial Court has clearly overlooked and brushed aside the said aspect. However, as the question of limitation goes to the root of the jurisdiction, we are of the view that the arbitral award in respect of 18 sq.mts. of land of the respondent No.1 in Survey No.130/3 of Thiruvail Village, Mangaluru Taluk, Dakshina Kannada District, was beyond limitation and the same is liable to be set aside.
6. There is no challenge to the award dated 26.05.2022 passed in respect of another extent of land of the respondent No.1 i.e., 427 sq.mts. Therefore, we are not interfering with the award passed by the Arbitrator in respect of 427 sq.mts. of land.
7. In view of the aforesaid, the appeal is allowed. The first award dated 22.01.2022 passed by the Arbitrator insofar as 18 sq.mts of land of the respondent No.1 is set aside as barred by limitation under the Limitation Act, 1963 which is applicable to the Arbitration and Conciliation Act, 1996.
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Pending IAs, if any, do not survive for consideration and accordingly, they stand disposed of.
Sd/- (D K SINGH) JUDGE
Sd/- (H.SHANTHI BHUSHAN) JUDGE
BKV CT:SN List No.: 2 Sl No.: 6