VidhiSangh

Supreme Court of India · 24/08/2022

NATIONAL HIGHWAYS AUTHORITY OF INDIA versus SHEETAL JAIDEV VADE & ORS.

[2022] 11 S.C.R. 118 · 2022 INSC 861

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Summary

Landowners whose land was acquired for a national highway obtained an enhanced compensation award from the arbitrator. NHAI challenged it under Section 34 of the Arbitration and Conciliation Act, 1996 without obtaining a stay. Instead of executing the award, the landowners filed a writ petition, and the High Court directed NHAI to deposit the whole amount with interest and allowed the landowners to withdraw 75%. The Supreme Court disapproved High Courts entertaining Article 226 petitions to execute arbitral awards, since the award-holder has an efficacious remedy in execution and the High Court would otherwise become an executing court. Following its order in Saraswatibai Chandrakant Shinde, it modified the directions instead of setting them aside.

Issues

  1. Whether a High Court should entertain a writ petition under Article 226 to enforce payment under an arbitral award for land compensation when the award is executable before the executing court
  2. What interim directions are appropriate where the award is under challenge under Section 34 without a stay

Provisions considered

Held

Result

Appeal disposed of; the High Court's order of 01.04.2022 was modified: NHAI to deposit 50% of the awarded compensation with the executing court within four weeks for unconditional release, the District Court to endeavour to decide the Section 34 proceedings within six months, and the balance as determined to be deposited within four weeks thereafter.

Judgment PDF: Supreme Court of India, [2022] 11 S.C.R. 118.