VidhiSangh

Supreme Court of India · 20/07/2021

THE PROJECT DIRECTOR, NATIONAL HIGHWAYS NO. 45 E AND 220 NATIONAL HIGHWAYS AUTHORITY OF INDIA versus M. HAKEEM & ANR.

[2021] 5 S.C.R. 368 · 2021 INSC 344

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Summary

In this 2021 decision, the Court held that Section 34 did not authorise modification of an arbitral award, including a compensation award under the National Highways Act. It rejected the High Court’s contrary legal reasoning. Nevertheless, it dismissed NHAI’s appeals on the facts: the awards relied perversely on guideline values, similarly situated owners had received enhanced compensation without challenge, and a fresh arbitration after seven to ten years would cause injustice.

Issues

  1. Whether Section 34 permitted a court to modify an arbitral award to enhance compensation under the National Highways Act.
  2. Whether the Supreme Court should nevertheless leave the enhanced compensation undisturbed in exercise of its discretionary jurisdiction.

Provisions considered

Held

Result

Appeals dismissed on facts, with no order as to costs; the High Court’s interpretation permitting modification under Section 34 was rejected.

Judgment PDF: Supreme Court of India, [2021] 5 S.C.R. 368.