Court Overturns Arbitrator's Decision, Establishing Precedent for Claims Denied Under Specific Compensation Heads
In a significant judgment, the Rajasthan High Court has ruled that compensation claims denied under specific heads by the Competent Authority for Land Acquisition (CALA) are maintainable before an arbitrator, as per Section 3G(5) of the National Highways Act, 1956. This decision comes as a major relief for landholders who have been struggling to seek redressal for compensation disputes.
The case, Pradeep Singh v. Union of India, revolved around the refusal of compensation for standing trees on the acquired land for the Bharatmala Project. The CALA had denied compensation on the grounds that the trees were allegedly planted to inflate compensation claims. The Arbitrator, in turn, refused to entertain applications under Section 3G(5) due to the absence of a quantified amount by CALA, prompting the petitioners to approach the High Court.
Justice Sanjeet Purohit emphasized that the denial of compensation itself constitutes a determination under the National Highways Act and should be subject to arbitration. The court clarified that the legislative intent behind Section 3G(5) is to provide a comprehensive mechanism for dispute resolution concerning compensation, including claims entirely denied by CALA.
The judgment highlighted that excluding wholly denied claims from arbitration would leave affected landholders without an effective remedy, thereby defeating the legislative purpose. The court concluded that arbitrators have the jurisdiction to adjudicate disputes related to undervalued as well as denied compensation claims, ensuring fair evaluation under the law.
The High Court's ruling quashed the Arbitrator's orders and directed the restoration and expeditious adjudication of the applications on merits. This judgment sets a precedent for handling similar compensation disputes under the National Highways Act, reaffirming the rights of landowners to seek arbitration for all compensation-related grievances.
Bottom line:-
National Highways Act, 1956 - Compensation claims under Section 3G(5) for denial of compensation under specific heads are maintainable before the Arbitrator. Rejection of compensation under a particular head constitutes a "determination" and is amenable to arbitration.
Statutory provision(s): National Highways Act, 1956 Section 3G(5)
Pradeep Singh v. Union of India, (Rajasthan) : Law Finder Doc id # 2907170
