CMA/716/2025 of THE NATIONAL HIGHWAYS AUTHORITY Vs Union of India on 30 September 2026

JUDGMENT

(Judgment of the Court was delivered by P.Velmurugan J.) Challenging the order passed by the learned Principal District Judge, Chengalpattu, in Arb.O.P.No.226 of 2010 dated 21.04.2023, the present Civil Miscellaneous Appeal has been filed.

2. The learned counsel for the appellant would submit that the Competent Authority, based on the documentary evidence available on record, had determined the fair compensation payable to the appellant. Aggrieved by the same, the respondent preferred an Original Petition invoking the arbitration provision. However, without properly considering or referring to the documents produced by the parties, the learned Principal District Judge dismissed the arbitration petition and confirmed the order passed by the Competent Authority.

3. Challenging the said order, the respondent invoking Section 34 of the Arbitration and Conciliation Act, 1996, before the learned Principal District Judge, seeking to question the compensation determined by the Competent Authority. The learned Principal District Judge, while considering the valuation of the acquired land, took note of the value fixed in respect of the neighbouring lands. However, the valuation report submitted by the Engineer on behalf of the claimant was not accepted. Without assigning any cogent or acceptable reason, the learned Principal District Judge proceeded to fix only half of the value determined by the Engineer. Such an exercise, according to the learned counsel, is beyond the scope of the jurisdiction under Section 34 of the Arbitration and Conciliation Act, 1996.

4. It is a settled proposition of law that, while exercising jurisdiction under Section 34 of the Arbitration and Conciliation Act, 1996, the Court cannot re- appreciate the evidence or substitute its own view for that of the Arbitrator merely because another view is possible. The Court is required to examine whether the award suffers from any of the grounds contemplated under Section 34 of the Act. The learned Principal District Judge, having gone into the question of valuation, re-appreciated the evidence and reduced the value by half without assigning sufficient reasons. Therefore, the order passed by the learned Principal District Judge is liable to be set aside.

5. A reading of the order passed by the learned Principal District Judge shows that no proper or cogent reason has been assigned for reducing half of the value. While exercising jurisdiction under Section 34 of the Arbitration and Conciliation Act, 1996, the learned Principal District Judge has traversed beyond the permissible scope of such jurisdiction. Therefore, we are inclined to set aside the order passed by the learned Principal District Judge. Accordingly, the order passed by the learned Principal District Judge, Chengalpattu, in Arb.O.P.No.226 of 2010 dated 21.04.2023 is hereby set aside and the matter is remanded to the Arbitrator/District Collector, Chengalpattu, for fresh consideration.

6. Since the land was acquired in the year 2007, the Principal District Judge is directed to provide an opportunity to both parties, hear the matter afresh, consider all the issues raised by the parties, and dispose of the claim petition filed by the respondent in accordance with law, within a period of three months from the date of receipt of a copy of this order.

7. The learned counsel for the appellant would further submit that even the Competent Authority has not paid the entire amount as per the award. Therefore, the Competent Authority is directed to pay the balance award amount, if any, within a period of fifteen days from the date of receipt of a copy of this order.

8. With the above directions, this Civil Miscellaneous Appeal is disposed of. No costs. Consequently, connected Civil Miscellaneous Petition is closed. (P.V.,J.) (GK.M.,J.) 30-09-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No PAM

To

1. The Secretary to Government, Union of India, National Highways Department, New Delhi.

2. The Competent Authority and Special District Revenue Officer (LA), National Highways, Kancheepuram and Thiruvallur District, Kancheepuram.

3. The Arbitrator and the District Collector and District Revenue Officer, Kancheepuram, Collectorate, Kancheepuram.

P. VELMURUGAN, J. AND GK. MUTHUKUMAAR, J. PAM C.M.A.No.716 of 2025 and C.M.P.No.5696 of 2025 30-09-2026