As per case facts, land was acquired by NHAI, and Arbitrators enhanced compensation. NHAI filed Section 34 objections and applications for stay on disbursement. Lower courts directed NHAI to deposit ...
CR-2594-2025(O&M) and -1-
other connected cases
201
IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
CR-2594-2025(O&M)
Date of Decision:04.09.2025
(1)
National Highways Authority of India
....Petitioners)
Versus
Piara Lal and others
.....Respondent(s)
CR-2774-2025(O&M)
(2)
National Highways Authority of India
....Petitioners)
Versus
Jagar Singh and others
.....Respondent(s)
CR-2762-2025(O&M)
(3)
National Highways Authority of India
....Petitioners)
Versus
Kali Ram (since deceased) through his LRs and others
.....Respondent(s)
CR-5174-2025(O&M)
(4)
National Highways Authority of India and another
....Petitioners)
Versus
Sarabjit Kaur and others
.....Respondent(s)
CR-2594-2025(O&M) and -2-
other connected cases
CR-5177-2025(O&M)
(5)
National Highways Authority of India and another
....Petitioners)
Versus
Sandeep Singh and others
.....Respondent(s)
CR-5184-2025(O&M)
(6)
National Highways Authority of India and another
....Petitioners)
Versus
Sarabjit Singh and others
.....Respondent(s)
CR-5187-2025(O&M)
(7)
National Highways Authority of India and another
....Petitioners)
Versus
Narinderjit Kaur and others
.....Respondent(s)
CR-5199-2025(O&M)
(8)
National Highways Authority of India and another
....Petitioners)
Versus
Jaspal Singh and others
.....Respondent(s)
CR-5175-2025(O&M)
(9)
National Highways Authority of India and another
....Petitioners)
Versus
CR-2594-2025(O&M) and -3-
other connected cases
Jaspal Singh and others
.....Respondent(s)
CR-5178-2025(O&M)
(10)
National Highways Authority of India and another
....Petitioners)
Versus
Paramjit Singh and others
.....Respondent(s)
CR-5189-2025(O&M)
(11)
National Highways Authority of India and another
....Petitioners)
Versus
Daljit Kaur and others
.....Respondent(s)
CR-3565-2025(O&M)
(12)
Project Director,National Highways Authority of India
....Petitioners)
Versus
Kusam Khanna and others
.....Respondent(s)
CR-3566-2025(O&M)
(13)
Project Director, National Highways Authority of India
....Petitioners)
Versus
Baltar Singh and others
.....Respondent(s)
CR-3567-2025(O&M)
CR-2594-2025(O&M) and -4-
other connected cases
(14)
Project Director, National Highways Authority of India
....Petitioners)
Versus
Pargat Singh and others
.....Respondent(s)
CR-3568-2025(O&M)
(15)
Project Director, National Highways Authority of India
....Petitioners)
Versus
Manmohan Singh and others
.....Respondent(s)
CR-3569-2025(O&M)
(16)
Project Director, National Highways Authority of India
....Petitioners)
Versus
Gursharan Singh Hundal and others
.....Respondent(s)
CR-3570-2025(O&M)
(17)
Project Director, National Highways Authority of India
....Petitioners)
Versus
Jasdeep Singh and others
.....Respondent(s)
CR-3571-2025(O&M)
(18)
Project Director, National Highways Authority of India
CR-2594-2025(O&M) and -5-
other connected cases
....Petitioners)
Versus
Kamaldeep Sharma and others
.....Respondent(s)
CR-5308-2025(O&M)
(19)
National Highways Authority of India
....Petitioners)
Versus
Parminder Singh and others
.....Respondent(s)
CR-6032-2025(O&M)
(20)
National Highways Authority of India
....Petitioners)
Versus
Vineet Sharma and others
.....Respondent(s)
CR-6033-2025(O&M)
(21)
National Highways Authority of India
....Petitioners)
Versus
Jasdeep Singh Sohal and others
.....Respondent(s)
CR-6034-2025(O&M)
(22)
National Highways Authority of India
....Petitioners)
CR-2594-2025(O&M) and -6-
other connected cases
Versus
Vishal Sharma and others
.....Respondent(s)
CORAM: HON’BLE MR. JUSTICE JASGURPREET SINGH PURI
Present : Mr. R.S.Madan, Advocate,
for the petitioner in CR-2594-2025,
CR-2774-2025 and CR-2762-2025.
Mr. D.K. Singal, Advocate,
for the petitioner in CR-5174-2025,
CR-5177-2025, CR-5184-2025,
CR-5187-2025,CR-5199-2025,
CR-5175-2025, CR-5178-2025 and
CR-5189-2025.
Mr. Rishi Kaushal, Advocate,
Mr. K.S. Kang, Advocate and
Mr. Bhupender Singh, Advocate,
for the petitioner in CR-3565-2025,
CR-3566-2025,CR-3567-2025,
CR-3568-2025,CR-3569-2025,
CR-3570-2025,CR-3571-2025,
CR-5308-2025,CR-6032-2025,
CR-6033-2025 and CR-6034-2025.
Mr. Karan Gupta, Advocate,
for respondent No.1 and 2 in CR-2594-2025,
for respondent No.1 in CR-2774-2025 and
for respondent No.1 and 2 in CR-2762-2025.
Mr. Inderjeet Sharma, Advocate,
for the respondent No.1 & 2 in CR-5174-2025,
for the respondent No.1 to 4 in CR-5177-2025,
for the respondent No.1 & 2 in CR-5184-2025,
for the respondent No.1 to 3 in CR-5187-2025,
for the respondent No.1 to 5 in CR-5199-2025,
for the respondent No.1 to 3 in CR-5175-2025,
for respondents No.1 in CR-5178-2025,
for respondents No.1 to 5 in CR-5189-2025.
Mr. Yash Raj Deora, Senior Advocate
(Through Video Conferencing) with
Mr. Satbir Rathore, Advocate,
Mr. Vikram Rathore, Advocate,
Mr. Digvijay Singh Rana, Advocate,
Mr. Sumit Rana, Advocate,
Mr. Prince Rana, Advocate,
CR-2594-2025(O&M) and -7-
other connected cases
Mr. Chander Kant Rana, Advocate and
Ms. Jyotika Behl, Advocate
for the respondents No.1 to 5 in CR-3566-2025,
for the respondents No.1 to 10 in CR-3567-2025,
for the respondents No.1 to 5 in CR-3568-2025,
for the respondents No.1 to 3 in CR-3569-2025,
for the respondent No.1 in CR-3570-2025,
for the respondents No.1 and 2 in CR-6032-2025,
for the respondents No.1 and 2 in CR-6033-2025 and
for the respondents No.1 to 6 in CR-6034-2025.
Mr. Gaganeshwar Walia, Advocate and
Mr. K.S. Minhas, Advocate,
for respondent No.1 to 4 in CR-3565-2025 and
for respondents No.1 to 3 in CR-3571-2025.
Mr. Raj Karan Singh Verka, Advocate,
for the respondents No.1 to 5 in CR-5308 of 2025.
Mr. Amit Kumar Goyal, Addl. A.G, Punjab.
****
JASGURPREET SINGH PURI , J. (Oral)
1. All the Civil Revision Petitions are being taken up together for
final disposal with the consent of learned counsels for the parties.
2. All the Civil Revision Petitions have been filed by the National
Highways Authority of India (hereinafter referred to as 'NHAI') and the
respondents, who are the land losers, are being represented by their respective
counsels.
3. The only issue involved in all these revision petitions is that land
was acquired for the purpose of building of National Highways and awards
were passed by the Competent Authority for Land Acquisition (CALA) under
the National Highways Act, 1956 (hereinafter referred to as '1956 Act') .
Admittedly, the amount of awards passed by the aforesaid CALA has already
been paid to all the land losers. Thereafter, as per the provisions of Section 3G
(5) of 1956 Act, references were made to the concerned authority who is the
Commissioner-cum-Arbitrator for deciding the references by way of
CR-2594-2025(O&M) and -8-
other connected cases
arbitration process. In all the cases, the learned Arbitrator has enhanced the
amount and award has been made by the learned Arbitrator regarding the same.
NHAI in all the aforesaid cases has assailed the aforesaid award by filing
objections under Section 34 of the Arbitration and Conciliation Act, 1996
(hereinafter referred to as 'the Act). These objections under Section 34 of the
Act, which were filed by the NHAI are pending before the concerned Courts
of learned Additional District Judges for about 1 to 3 years. In all the
objections filed by the NHAI under Section 34 of the Act, applications were
moved by NHAI under Section 36(2) of the Act for grant of stay on
disbursement of the enhanced amount. By way of the present impugned orders,
the Courts of Additional District Judges have disposed of the applications by
directing that 100% of the amount be deposited by the NHAI and out of the
aforesaid 100% amount being deposited, 50% of the amount is to be released to
the land losers on furnishing adequate security in some of the cases and
indemnity bond/personal bond in other cases.
4. All the learned counsels appearing in different cases on behalf of
the NHAI submitted that the challenge to the present impugned orders is only
to a limited extent for seeking modification of the aforesaid orders whereby
50% amount which has been directed to be released to the land losers may be
released not on the basis of furnishing of adequate security/indemnity
bond/personal bond but it may be released on furnishing of adequate bank
guarantee.
5. All the learned counsels for the petitioners-NHAI have further
submitted that so far as the issue pertaining to the deposit of 100% of the award
amount granted by the Arbitrator under Section 3G (5) of 1956 Act is
concerned, in most of the cases the aforesaid 100% amount has already been
deposited and in case 100% amount determined under Section 3G (5) of 1956
CR-2594-2025(O&M) and -9-
other connected cases
Act is not deposited till date, then they specifically undertake to deposit the
same before the learned Executing Court within a period of three weeks from
today. They also submitted that in case the aforesaid amount of 100% has
already been deposited before the CALA, then it will be their responsibility to
ensure that the amount is transferred to the learned Executing Court so that
further orders regarding disbursement of 50% of the total amount can be
implemented.
6. Learned counsels for the petitioner-NHAI while making
submissions pertaining to seeking modification of the impugned orders
submitted that the aforesaid issue as to whether the 50% amount is to be
disbursed on the basis of furnishing of adequate security/indemnity
bonds/personal bonds or by furnishing bank guarantee has been decided by
Hon'ble Supreme Court in a large number of cases. Mr. Rishi Kaushal,
Advocate, one of the counsels for NHAI has supplied a list of 205 cases
wherein the Hon'ble Supreme Court has modified the orders passed by this
Court. As per learned counsel, in the aforesaid 205 cases, this Court had
directed the disbursement of 50% of the amount to the land losers by furnishing
adequate security, which was modified by Hon'ble Supreme Court in different
SLPs to the extent that 50% of the amount be released by furnishing of bank
guarantee. The aforesaid list supplied by Mr. Rishi Kaushal, learned counsel
for NHAI is taken on record as Mark-X and a copy of the same has already
been supplied to the learned counsels for the land losers. The Registry is
directed to tag the aforesaid Mark-X at an appropriate place in the paper-book
in one of the cases.
7. Learned counsels submitted that in this way, consistently, the
Hon'ble Supreme Court has taken a view that in cases involving NHAI where
objections under Section 34 of the Act are pending and are not decided and the
CR-2594-2025(O&M) and -10-
other connected cases
applications under Section 36(2) of the Act are to be decided, then 50% of the
amount can be disbursed to the land losers only on furnishing of bank
guarantee and not by way of security.
8. Learned counsels for the NHAI in this regard have also referred to
the orders passed by Hon'ble Supreme Court in National Highways Authority
of India Versus Maharaj Singh and others, SLP (c) No.27295 of 2024,
decided on 20.02.2025 to contend that by way of the aforesaid orders dated
20.02.2025, it was directed that the orders passed by High Court were modified
to a limited extent that the withdrawal of the 50% of the amount deposited by
the NHAI shall be permitted, subject to the claimants furnishing a bank
guarantee for the said amount to the satisfaction of the said Court. They
submitted that thereafter other SLPs were also filed before the Hon'ble
Supreme Court which were decided in a bunch of SLP(Civil) No.27228/2024,
titled National Highways Authority of India Versus Pankush Mittal and
others on similar lines. Thereafter another bunch of SLPs was also decided in
SLP (C) No.15585 of 2025, titled National Highways Authority of India
Versus Mam Kaur and others, decided on 14.07.2025 wherein all the Special
Leave Petitions were disposed of in terms of the earlier order passed by
Hon'ble Supreme Court in Maharaj Singh's case (supra). Learned counsels
submitted that similar kind of orders have been passed by Hon'ble Supreme
Court, wherein it was directed that 50% of the amount is to be disbursed to the
land losers on furnishing of bank guarantee and not by way of security etc.
9. Learned counsels further submitted that the reasons as to why the
NHAI insists upon disbursement of the amount to the land losers on the basis
of bank gurantee and not on the basis of security are that when the 100%
amount which has been granted by the Arbitrator under Section 3G(5) of 1956
Act is deposited before the learned Executing Court, then the purpose of
CR-2594-2025(O&M) and -11-
other connected cases
securing the amount stands fulfilled even in terms of Order XLI Rule 5 of
CPC and when the award which is otherwise deemed to be a decree of a Civil
Court is to be stayed, then the purpose of securing the amount stands fulfilled
by deposit of 100% of the amount and thereafter, in case 50% amount is to be
released to the land losers, then the better method of securing the aforesaid
amount from the land losers is by way of bank guarantee and not security. They
submitted that earlier in many cases, security was furnished by the land losers
which was not adequate but still it was accepted by different Courts and in
such cases thereafter it becomes difficult for the NHAI to recover the amount
from the land losers in case any adverse orders are passed against the land
losers while deciding the objections under Section 34 of the Act. They
submitted that the impugned orders being inconsistent with the view taken by
Hon'ble Supreme Court may be modified only to a limited extent as aforesaid.
10. On the other hand, learned counsels appearing on behalf of the
land losers in all the cases submitted that in fact, furnishing of bank guarantee
would be very harsh for the land losers as first of all they will have to deposit
an amount to the extent of 1½ times of the amount and it is only as per the
guidelines of the Reserve Bank of India that the bank guarantee is furnished.
They submitted that it is a normal procedure for all the Banks in India that
either a cash amount of 1½ times is deposited for the purpose of obtaining a
bank guarantee or land equivalent to about 3 to 4 times the amount is taken as a
security and only then the bank guarantee is issued by the bank, which is
beyond the capacity of the landlosers.
11. All the learned counsels for the parties have submitted that it is
undisputed that all land losers have already received the amount of the award
passed by the CALA, which was the initial award but they have not received
CR-2594-2025(O&M) and -12-
other connected cases
any amount regarding the award which has been passed by the learned
Arbitrator under Section 3G(5) of 1956 Act.
12. Learned counsels further referred to other judgments of Hon'ble
Supreme Court in this regard. A reference was made to an order passed by the
Hon'ble Supreme Court dated 01.08.2022 in SLP No.12409 of 2022 in Project
Director, National Highways Authority of India Versus Saraswatibai
Chandrakant Shinde and others, wherein it was directed that 50% of the
compensation amount of the award passed under Section 34 of the Arbitration
Act shall be released to the landowners unconditionally and the remaining
amount shall be deposited by the NHAI with the Executing Court within four
weeks after such determination and the same shall also be released to the
landowners subject to the rights and remedies available to the parties in law
and in this way, the order passed by the High Court of Bombay was modified in
the aforesaid terms.They also referred to another judgment of Supreme Court in
National Highways Authority of India Versus Sheetal Jaidev Vade and
others, Civil Appeal No.5256 of 2022, decided on 24.08.2022, wherein while
referring to the aforesaid judgment in Saraswatibai Chandrakant Shinde's
case (Supra), similar directions were also issued. They submitted that
considering the fact that the respondents-land losers have lost their land and the
objection petitions under Section 34 of the Act are pending before the
concerned Courts of learned Additional District Judges for about 1 to 3 years
and they have not been able to receive any money as per award which was
passed under Section 3G(5) of 1956 Act, prejudice is being caused to them and
therefore, the present petitions are liable to be dismissed. They submitted that
although the award amount already stands secured by deposit of the 100% of
the amount with the Executing Court but the land losers will not be able to take
advantage of the same, even to the extent of 50%, in case the same is to be
CR-2594-2025(O&M) and -13-
other connected cases
released on the basis of furnishing of bank guarantee. On the other hand, in
case they are able to get the aforesaid 50% amount on the basis of furnishing
adequate security/indemnity bond, then it will be easier for them to get at least
50% of the amount. They also submitted that the adjudication of the objections
under Section 34 of the Act may take a long time and in this way, considering
the delay being caused in the final adjudication of objections under Section 34
of the Act, prejudice will be caused to the landlosers in case the impugned
orders are modified as prayed for by the learned counsels for the petitioners.
13. Mr. Yash Raj Deora, learned Senior Advocate for some of the
land losers while appearing through video conferencing has raised an
additional plea that the present are the civil revision petitions and the scope
of a revision petition is very limited and the Court could interfere only when
the impugned order is either without jurisdiction or it has exercised powers
in excess of its jurisdiction or the order is so perverse in nature that
intervention becomes necessary in a revision petition under Article 227 of
the Constitution of India. He submitted that the present is not a case which
falls in either of the aforesaid three categories and therefore, on this ground
as well, the revision petitions are liable to be dismissed.
14. I have heard the learned counsels for the parties.
15. First of all, so far as the arguments raised by the learned Senior
Counsel for the land losers with regard to the maintainability of the present
revision petitions under Article 227 of the Constitution of India are
concerned, there is no dispute with regard to the proposition of law that the
scope of interference in a revision petition under Article 227 of the
Constitution of India is very limited. The proposition of law as stated by the
learned Senior Counsel for the land losers is well established on the
CR-2594-2025(O&M) and -14-
other connected cases
principles of law. Whether the orders which are required to be interfered in
a revision petition are perverse or not can only be seen in the facts and
circumstances of each and every case. There is neither any pigeon hole
theory nor there is a straightjacket formula for the same. Every case is
dependent upon its own facts and circumstances. The present cases pertain
to an issue wherein a large number of cases have been decided by this Court
and various other High Courts but Hon’ble Supreme Court in the orders
cited by the learned counsels for the parties in some of the cases has directed
release of 50% of the amount on furnishing of bank guarantee only and in
some other cases, as cited by the learned counsels for the landlosers, 50% of
the amount has been released unconditionally. Therefore, the scope of issue
becomes broader in nature and it becomes imperative for this Court to
consider the revision petitions filed by the petitioners in their true
perspective and to pass an order accordingly by suitable intervention.
16. In case the orders passed by learned Additional District Judges
while passing orders on the applications under Section 36(2) of the Act have
a large effect on a large number of cases, this Court is of the considered
view that the petitioners cannot be non-suited only on the ground of the
aforesaid objection taken by the learned Senior Counsel. This Court is of the
considered view that these are fit cases where this Court should entertain the
revision petitions under Article 227 of the Constitution of India and
adjudicate upon the same in accordance with law.
17. The judgments which have been so cited by the learned
counsels for the NHAI are reproduced as under:-
(i) National Highways Authority of India Versus
Maharaj Singh and others, SLP (c) No.27295 of
2024.
CR-2594-2025(O&M) and -15-
other connected cases
“1. Leave granted.
2. In these cases, petitions under Section 34 of the
Arbitration and Conciliation Act, 1996 (for short, ‘the
1996 Act’) are pending. The High Court was right in
imposing condition of the appellant depositing 50 per
cent of the compensation amount as a condition for grant
of stay. However, the High Court should have secured the
amount by directing the respondents-claimants to furnish
a bank guarantee for the said amount to the satisfaction
of the Court in which Section 34 petitions are pending.
3. Accordingly, we modify the impugned orders to that
limited extent. The withdrawal of the 50% of the amount
deposited by the appellant shall be permitted subject to
the respondents-claimants furnishing a bank guarantee
for the said amount to the satisfaction of the said Court.
4. If the claimants failed to withdraw the amount on
furnishing bank guarantee as aforesaid within four
months from today, the amount shall be deposited in the
fixed deposit with any nationalised bank and the fixed
deposit shall be renewed from time to time till the
disposal of the petitions before the High Court.
5. We are conscious of the fact that some of the
claimants are not served. If they need any clarification
/modification, they are free to apply to this Court.
6. The appeals are partly allowed on the above
terms”.
(ii)
National Highways Authority of India Versus
Pankush Mittal and others, SLP(Civil) No.27228
of 2024.
“ Leave granted.
The impugned orders are modified to a limited extent. It
will be open for the executing Court to disburse 50 per
cent of the compensation amount to the claimants against
CR-2594-2025(O&M) and -16-
other connected cases
a bank guarantee of a nationalised bank to be furnished
by the claimants to the satisfaction of the executing Court.
The remaining amount shall be invested in a fixed deposit
with any nationalised bank and the fixed deposit shall be
renewed from time to time till the disposal of the appeals
before the High Court.
The Appeals are partly allowed on the above terms”
(iii)
National Highways Authority of India Versus
Mam Kaur and others, SLP (C) No.15585 of 2025.
“We dispose of these Special Leave Petitions by
following the order dated 27.05.2025 passed by this
Court in SLP(C) No.12381/2025 [National Highways
Authority of India vs. Balwant Singh And Ors.]. For ease
of reference the aforesaid order is extracted as under:
"Permission to file Special Leave Petition(s) is
granted.
Delay condoned.'
We dispose of these Special Leave Petitions by
reserving liberty to the petitioner(s) herein to seek
modification of the impugned interim order(s) on the
basis of the final order dated 20.02.2025 passed by
this Court in the case of National Highways
Authority of India Vs. Maharaj Singh & Ors. (S.L.P
(C) No. 27289/2024 and connected matters).
For ease or reference, the relevant portion of the said
order is extracted as under -
1. Leave granted.
2. In these cases, petitions under Section 34 of the
Arbitration and Conciliation Act, 1996 (for short, 'the
1996 Act') are pending. The High Court was right in
imposing condition of the appellant depositing 50 per
cent of the compensation amount as a condition for
grant of stay. However, the High Court should have
CR-2594-2025(O&M) and -17-
other connected cases
secured the amount by directing the respondents-
claimants to furnish a bank guarantee for the said
amount to the satisfaction of the Court in which
Section 34 petitions are pending.
3. Accordingly, we modify the impugned orders to
that limited extent. The withdrawal of the 50% of the
amount deposited by the appellant shall be permitted
subject to the respondents-claimants furnishing a
bank guarantee for the said amount to the
satisfaction of the said Court.
4. If the claimants failed to withdraw the amount on
furnishing bank guarantee as aforesaid within four
months from today, the amount shall be deposited in
the fixed deposit with any nationalised bank and the
fixed deposit shall be renewed from time to time till
the disposal of the petitions before the High court.
5. We are conscious of the fact that some of the
claimants are not served. If they need any
clarification / modification, they are free to apply to
this Court.
6. The appeals are partly allowed on the above
terms."
The Special Leave Petitions are disposed of in the
aforesaid terms.
Pending application(s) including the application(s)
for deletion /addition /modification of parties shall
stand disposed of."
The aforesaid order shall apply to these cases also.
Pending applications(s), if any, shall stand disposed
of.”
18. The judgments which have been cited by the learned counsels
for the land losers are also reproduced as under:-
CR-2594-2025(O&M) and -18-
other connected cases
(i) National Highways Authority of India Versus Saraswatibai
Chandrakant Shinde and other, SLP No.12409 of 2022.
“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.
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.
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.
Meanwhile, the land owners have filed Execution Petitions
but no amount has been deposited with the Executing Court.
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.
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.
CR-2594-2025(O&M) and -19-
other connected cases
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.
With these observations and directions, the Special Leave
Petition is disposed of.
The impugned order passed by the High Court of Bombay
dated 28.04.2022 stands modified in above terms.
Pending application(s), if any, shall stand disposed of”.
(ii) National Highways Authority of India Versus Sheetal
Jaidev Vade and others, Civil Appeal No.5256 of 2022.
“1. Feeling aggrieved and dissatisfied with the impugned
judgment and order dated 01.04.2022 passed by the High
Court of Judicature of Bombay at Aurangabad in Writ Petition
No.144 of 2021 by which in a writ petition filed by the
respondents herein - original land owners, in exercise of
powers under Article
226 of the Constitution of India, the High
Court has directed the appellant - NHAI to deposit the entire
compensation amount as awarded by the learned Arbitrator
and thereafter permitting the original land owners - original
writ petitioners to withdraw the amount as mentioned in
paragraph 4, the NHAI has preferred the present appeal.
2. That the land of the respondents herein - original land
owners - original writ petitioners came to be acquired by the
NHAI under the provisions of the NHAI Act. That the amount of
compensation came to be enhanced by the learned Arbitrator.
The award passed by the learned Arbitrator has been
challenged by the NHAI by availing the statutory remedy under
section 34 of the Arbitration Act to the extent of the enhanced
amount. That as there was no stay of the award passed by the
CR-2594-2025(O&M) and -20-
other connected cases
learned Arbitrator in a proceedings under section 34 of the
Arbitration Act, the respondent herein - original land owners
instead of filing the execution petition to execute the award
declared by the learned Arbitrator enhancing the amount of
compensation, filed the writ petition before the High Court and
prayed for a Writ of Mandamus and/or appropriate
directions/orders directing the NHAI to deposit the amount with
the Competent Authority, Land Acquisition and Sub-Divisional
Officer in pursuance of the award dated 12.06.2018. By the
impugned judgment and order the High Court has disposed of
the said writ petition by directing the appellant - NHAI to
deposit the entire amount along with interest with the Land
Acquisition Authority and thereafter has directed the original
writ petitioners - land owners to withdraw 50% of the amount
along with interest on filing an affidavit of undertaking that if
in the litigation journey, an adverse order is passed against
them and they are found to have withdrawn excess amount, the
said amount would be re-deposited with the authority. So far as
the remaining 50% of the amount with interest is concerned,
the High Court has permitted the original writ petitioners -
original land owners to withdraw 25% of the amount by
tendering a solvent surety and the remaining 25% of the
amount to be deposited with the competent authority with a
liberty to invest the said amount in a fixed deposit account in
any Nationalized Bank. Feeling aggrieved and dissatisfied with
the impugned order passed by the High Court, the NHAI has
preferred the present appeal.
3. Ms. Aishwarya Bhati, learned ASG appearing on behalf of
the appellant - NHAI has vehemently submitted that the Hon'ble
High Court has seriously erred in passing the impugned order
in exercise of powers under Article 226 of the Constitution of
India.
3.1 It is further submitted by Ms. Bhati, learned ASG that as the
award passed by the learned Arbitrator was executable before
CR-2594-2025(O&M) and -21-
other connected cases
the concerned Executing Court and therefore when the original
writ petitioners had a statutory remedy available to execute the
award by initiating the execution proceedings before the
concerned Executing Court, the High Court ought not to have
entertained the writ petitions under Article 226 of the
Constitution of India to execute the award passed by the learned
Arbitrator.
3.2 It is further submitted by Ms. Bhati, learned ASG that even
otherwise the Hon'ble High Court has committed a serious
error in permitting the writ petitioners - original land owners to
withdraw 75% of the amount of compensation with interest,
when the appellant had already availed the statutory remedy
available to the NHAI to challenge the award passed by the
learned Arbitrator, by way of appeal/application under
section 34 of the Arbitration Act.
3.3 Ms. Bhati, learned ASG has placed reliance on the order
passed by this Court in Special Leave to Appeal No.12409 of
2022 passed in the case of The Project Director, National
Highways Authority of India v. Saraswatibai Chandrakant
Shinde & Ors. by which, on the similar set of facts and
circumstances this Court has directed the NHAI to deposit 50%
of the compensation amount, as awarded by the Arbitral
Tribunal with the Executing Court and has permitted the
original land owners to withdraw the same unconditionally, and
the balance amount of compensation as per the award to be
passed under section 34 of the Arbitration Act to be deposited
by the NHAI with the Executing Court within four weeks after
such determination.
4. Present appeal is vehemently opposed by Mr. Shirish K.
Deshpande, learned Advocate appearing on behalf of the
private respondents herein - original writ petitioners - original
land owners.
4.1 It is submitted that in the facts and circumstances of the case
more particularly considering the fact that there is no stay of
CR-2594-2025(O&M) and -22-
other connected cases
the award passed by the learned Arbitral Tribunal/Court in a
proceeding under section 34 of the Arbitration Act and that
NHAI took possession of the land without paying any
compensation, the Hon'ble High Court has not committed any
error in passing the impugned order. However, learned Counsel
appearing on behalf of the private respondents herein - original
land owners - original writ petitioners, is not in a position to
dispute and is not disputing that the award passed by the
learned Arbitral Tribunal/Court is executable by way of an
execution proceeding before the concerned Executing Court.
5. We have heard the learned counsel for the respective parties
at length.
6. At the outset, it is required to be noted that the private
respondents herein - original writ petitioners filed the writ
petition before the High Court and prayed for the following
reliefs in exercise of powers under Article 226 of the
Constitution of India:
"(a) This Writ Petition may kindly be allowed.
(b) That, by way of writ of mandamus of the direction like
in nature the respondents No.1 and 2 may kindly be
directed to deposit the amount with respondent No.3 in
pursuance of the award dated 12.06.2018 vide
No.2016/LA/NH-351/ CR-01 passed by the respondent
No.3 forthwith.
(c) That, by way of writ of mandamus of the directions
like in nature the respondent No.3 may kindly be directed
to make the payment to petitioners forthwith after the
respondents No.1 and 2 deposit the amount."
6.1 Therefore, reliefs which have been sought by the private
respondents herein - original writ petitioners were in the nature
of execution of the award passed by the learned Arbitral
Tribunal/Court.
6.2 Apart from the fact that the award dated 12.06.2018 has
been challenged by the NHAI by initiating proceedings under
CR-2594-2025(O&M) and -23-
other connected cases
section 34 of the Arbitration Act which are reported to be
pending, the High Court ought not to have entertained the writ
petition under Article 226 of the Constitution of India seeking
the reliefs to execute the award passed by the learned Arbitral
Tribunal/Court, when the award passed by the learned Arbitral
Tribunal/Court is to be executed by initiating an execution
proceeding before the concerned Executing Court. But, by
passing the impugned order/directions the High Court has
virtually converted itself into Executing Court. Therefore, once
the original writ petitioner was having an efficacious,
alternative remedy to execute the award passed by the learned
Arbitral Tribunal/Court, by initiating an appropriate execution
proceeding before the competent Executing Court, the High
Court ought to have relegated the original writ petitioners to
avail the said remedy instead of entertaining the writ petition
under Article 226 of the Constitution of India which was filed to
execute the award passed by the Arbitral Tribunal/Court. If the
High Courts convert itself to the Executing Court and entertain
the writ petitions under Article 226 of the Constitution of India
to execute the award passed by the Arbitral Tribunal/Court, the
High Courts would be flooded with the writ petitions to execute
awards passed by the learned Arbitrator/Arbitral
Tribunal/Arbitral Court.
7. We disapprove the entertaining of such writ petitions under
Article 226 of the Constitution of India to execute the award
passed by the learned Arbitral Tribunal/Court, without
relegating the judgment creditor in whose favour the award is
passed to file an execution proceeding before the competent
Executing Court.
7.1 In view of the above discussion, we would have set aside the
impugned judgment and order passed by the High Court on the
aforesaid ground alone. However, taking into consideration the
similar order passed by this Court in the case of Saraswatibai
CR-2594-2025(O&M) and -24-
other connected cases
Chandrakant Shinde (supra), we deem it appropriate to dispose
of the present proceedings/appeal 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 from the next
date of hearing before the said court.
(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 land owners subject to the rights
and remedies available to the parties in law.
With these observations and directions, the Appeal is disposed
of.
The impugned order passed by the High Court of Bombay dated
01.04.2022 stands modified in above terms.
Pending application(s), if any, shall stand disposed of”
19. Considering the aforesaid orders passed by Hon’ble Supreme
Court and the submissions made by the learned counsels for the parties, this
Court is of the considered view that it is necessary to balance equities and
adopt a holistic approach with regard to the entire issue involved. On the one
hand, it is the contention of the learned counsels for the petitioners-NHAI
that once a stay order is granted by the Court, then considering the award to
be a money decree and even after applying the analogy of Order XLI Rule
CR-2594-2025(O&M) and -25-
other connected cases
5 of CPC, the entire amount to the extent of 100% is to be deposited before
the learned Executing Court and once all the conditions which are necessary
stand satisfied and the amount itself gets secured, then the land losers do not
have any right to seek 50% disbursement of the aforesaid amount but in any
case the NHAI has no objection in case the aforesaid 50% amount is
released against a bank guarantee and therefore, the insistence of the land
losers for release of 50% of the amount by furnishing adequate
security/indemnity bond is unfounded. On the other hand, it was the stand
taken by the land losers that once their land has been taken away by the State
compulsorily, although they have received the entire amount of award
passed by the CALA but with regard to the enhanced amount pertaining to
the award passed by the learned Arbitrator under Section 3G(5) of 1956 Act,
no money has been given to them which has caused prejudice to them and in
case 50% of the amount is paid to them against a bank guarantee, then it is
not only harsh but practically not possible to get the aforesaid amount
because the conditions of bank guarantee are very harsh and they are not in a
capacity to furnish bank guarantee.
20. There is no doubt that the objections under Section 34 of the
Act
are pending before the concerned Courts of learned Additional District
Judges for about 1 to 3 years
and to some extent there is a delay and there is
also no doubt that the landlosers whose land was compulsorily acquired,
although they have been paid the award amount granted by CALA but have
not been paid the enhanced amount which was passed by the learned
Arbitrator under Section 3G(5) of 1956 Act but at the same time, when the
Court decides an application under Section 36(2) of the Act, then the award
which is deemed to be a money decree has to be secured. It has been
CR-2594-2025(O&M) and -26-
other connected cases
undertaken by all the learned counsels for the NHAI that in most of the
cases, 100% amount has already been deposited either before the learned
Executing Court or before the CALA and in those cases where the same has
not been deposited, they have undertaken that the same will be deposited
within a period of three weeks from today.
21. Therefore, considering the aforesaid facts and circumstances,
the present petitions are disposed of with the following directions:-
(i) The petitioner-NHAI is directed to deposit 100% of the
award amount granted under Section 3G(5) of 1956 Act before
the learned Executing Court, in case the aforesaid 100% amount
has not been deposited till date before the learned Executing
Court. In case the amount is deposited before CALA, then it shall
be transmitted to the learned Executing Court forthwith. In case
the undertakings given by the learned counsels for the petitioners-
NHAI with regard to the above on taking instructions from NHAI
are not complied with, then the respondents-land losers shall be at
liberty to file any appropriate application before this Court or any
other petition including a contempt petition.
(ii) Out of the total amount deposited by the NHAI, 50% of the
deposited amount shall be deposited in a Nationalized Bank in the
shape of FDR earning maximum rate of interest and the same
shall be renewed from time to time, if required. The remaining
50% of the amount may be released to the land losers in the event
of their filing an application within a period of four months from
today, subject to furnishing of adequate bank guarantee. In case
no such application is made by the land losers in this regard
CR-2594-2025(O&M) and -27-
other connected cases
within the aforesaid period, then the aforesaid amount of 50%
shall be kept in a Nationalized Bank in the shape of FDR earning
maximum rate of interest.
(iii) The respondents-land losers shall be permitted to seek
release of the aforesaid amount of 50% mentioned in the
preceding para, even partially i.e. less than 50% also subject to
furnishing of adequate bank guarantee and thereafter, the
remaining amount shall be deposited in the Nationalized Bank in
the shape of FDR in the same manner.
(iv) The Courts where the objections under Section 34 of the
Act are pending shall make an endeavour to decide the same as
early as possible and preferably within a period of six months
from today.
04.09.2025 (JASGURPREET SINGH PURI)
rakesh JUDGE
Whether speaking : Yes/No
Whether reportable : Yes/No
Legal Notes
Add a Note....