Supreme Court direct National highway authority of india to make part payment of compensation for acquired land

 Having heard learned counsel for the parties, we deem it appropriate to dispose of the present proceedings with the following directions:

i. The NHAI shall deposit 50 per cent of the compensation amount, as awarded by the Arbitral Court, with the Executing Court within a period of four weeks. The said amount shall be released to the land owners unconditionally.

ii. The learned District Court, before whom the proceedings under Section-34 of the Arbitration Act are pending, shall make an endeavour to decide such proceedings within a period of six months.

iii. The balance amount of compensation as per the Award to be passed under Section 34 of the Arbitration Act, shall be deposited by the NHAI with the Executing Court within four weeks after such determination. The said amount shall also be released by the Executing Court in favour of the landowners subject to the rights and remedies available, to the parties in law. {Para 6}

 In the Supreme Court of India

(Before Surya Kant and Abhay S. Oka, JJ.)

Petition(s) for Special Leave to Appeal (C) No(s). 12409/2022

Project Director National Highways Authority of India Vs Saraswatibai Chandrakant Shinde and Others 

Decided on August 1, 2022

Citation: 2022 SCC OnLine SC 1115.

1. Heard Ms. Aishwarya Bhati, learned ASG appearing on behalf of the Petitioner and Mr. Ravindra Keshavrao Adsure, learned counsel who has appeared on caveat on behalf of the Respondent No. 1.

2. The controversy pertains to the non-deposit of compensation amount awarded for the land, which the Petitioner-National Highways Authority of India (NHAI) had acquired and taken possession way back in the year 2016.

3. It appears that, being aggrieved by the Arbitral Award passed by the Ld. Arbitrator cum Commissioner, the NHAI has filed petitions under Section 34 of the Arbitration and Conciliation Act, 1996, which are still pending without any interim stay.

4. Meanwhile, the land owners have filed Execution Petitions but no amount has been deposited with the Executing Court.

5. It is in these circumstances, that the High Court has intervened vide its impugned Order dated 28.04.2022, directing the NHAI to deposit the amount as per the Arbitrator's Award before the Executing Court on or before 30.06.2022.

6. Having heard learned counsel for the parties, we deem it appropriate to dispose of the present proceedings with the following directions:

i. The NHAI shall deposit 50 per cent of the compensation amount, as awarded by the Arbitral Court, with the Executing Court within a period of four weeks. The said amount shall be released to the land owners unconditionally.

ii. The learned District Court, before whom the proceedings under Section-34 of the Arbitration Act are pending, shall make an endeavour to decide such proceedings within a period of six months.

iii. The balance amount of compensation as per the Award to be passed under Section 34 of the Arbitration Act, shall be deposited by the NHAI with the Executing Court within four weeks after such determination. The said amount shall also be released by the Executing Court in favour of the landowners subject to the rights and remedies available, to the parties in law.

7. With these observations and directions, the Special Leave Petition is disposed of.

8. The impugned order passed by the High Court of Bombay dated 28.04.2022 stands modified in above terms.

9. Pending application(s), if any, shall stand disposed of.

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