✦ High Court of India

High Court

Facts

- 1 -IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD911 WRIT PETITION NO. 1690 OF 2024GORAKSHNATH PARAJI KADAM AND ANOTHERVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND914 WRIT PETITION NO. 9994 OF 2024DEVIDAS VITTHAL KADAM AND OTHERSVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND915 WRIT PETITION NO. 9995 OF 2024BHASKAR CHANDRABHAN KADAM AND ANOTHERVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND916 WRIT PETITION NO. 9996 OF 2024CHAGAN AHILAJI KADAM AND OTHERSVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND917 WRIT PETITION NO. 9997 OF 2024PIRTAJI RAKHMAJI KADAM AND OTHERSVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND918 WRIT PETITION NO. 9998 OF 2024ANJANABAI SAHEBRAV KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSANDkhs/Sep.2024/1690 - 2 -919 WRIT PETITION NO. 9999 OF 2024RAJENDRA RAVSAHEB KADAM AND ANOTHERVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND920 WRIT PETITION NO. 10000 OF 2024JAYRAM BABAURAV KADAM AND ANOTHERVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND921 WRIT PETITION NO. 10001 OF 2024RAJENDRA RAVSAHEB KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND922 WRIT PETITION NO. 10002 OF 2024BALASAHEB KONDAJI KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND923 WRIT PETITION NO. 10003 OF 2024SHANKAR BAJIRAV KADAM AND OTHERSVERSUSTHE UNION OF INDIA THR ITS SECRETARY AND OTHERSAND924 WRIT PETITION NO. 10004 OF 2024SHIVAJI BAJIRAV KADAM KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND925 WRIT PETITION NO. 10005 OF 2024SHANTA RAVSAHEB KADAM AND OTHERSVERSUSkhs/Sep.2024/1690 - 3 -THE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND926 WRIT PETITION NO. 10006 OF 2024SAVITRA BALWANT KADAM DECEASED BEHALF RAVSAHEB SAVITRAKADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND927 WRIT PETITION NO. 10007 OF 2024GOVARDHAN MURLIDHAR KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND928 WRIT PETITION NO. 10008 OF 2024SURYABHAN SAHEBRAO KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND929 WRIT PETITION NO. 10009 OF 2024AMBADAS BHAGWAT KADAM AND OTHERSVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND930 WRIT PETITION NO. 10010 OF 2024GORKSHNATH BABURAV KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND931 WRIT PETITION NO. 10011 OF 2024YAMUNABAI BHASKAR KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSANDkhs/Sep.2024/1690

Legal Reasoning

- 7 -( CORAM : RAVINDRA V. GHUGE AND Y.G.KHOBRAGADE, JJ.) DATE : SEPTEMBER 12, 2024PER COURT : 1.In all these matters, the Petitioners are before the Courtwith an identical grievance. The Acquiring Authority has challenged theaward before the Arbitrator under Section 3G(5) of the NationalHighways Act, 1956. After lodging of the proceedings, no steps havebeen taken by the Acquiring Authority for conducting the matters. Nointerim relief has been sought, much less, granted. The grievance isthat, neither the amount is deposited before the Arbitrator, nor is it paidto the Claimants.2.Having considered the submissions of the learnedAdvocates and having perused the affidavits in reply, there are severalcontentious issues as regards the alleged escalation of the price of theland, the plantations made and the purported improvements carriedout, etc., with an object of orchestrating an unusual and unjustified risein the compensation.khs/Sep.2024/1690 - 8 -3.With the assistance of the learned Advocates, we haveperused Sections 9 and 17 of the Arbitration and Conciliation Act,1996, which read as under:-“9. Interim measures, etc., by Court.—(1)A party may, before or during arbitral proceedings orat any time after the making of the arbitral award butbefore it is enforced in accordance with section 36,apply to a court—(i) for the appointment of a guardian for a minoror person of unsound mind for the purposes ofarbitral proceedings; or(ii) for an interim measure of protection in respectof any of the following matters, namely:—(a) the preservation, interim custody or sale ofany goods which are the subject-matter of thearbitration agreement;(b) securing the amount in dispute in thearbitration;(c) the detention, preservation or inspection ofany property or thing which is the subject-matter ofthe dispute in arbitration, or as to which any questionmay arise therein and authorising for any of theaforesaid purposes any person to enter upon any landor building in the possession of any party, orauthorising any samples to be taken or anyobservation to be made, or experiment to be tried,which may be necessary or expedient for the purposeof obtaining full information or evidence;(d) interim injunction or the appointment of areceiver;(e) such other interim measure of protection asmay appear to the Court to be just and convenient,and the Court shall have the same power for makingorders as it has for the purpose of, and in relation to,any proceedings before it.(2) Where, before the commencement of the arbitralkhs/Sep.2024/1690 - 9 -proceedings, a Court passes an order for any interimmeasure of protection under sub-section (1), thearbitral proceedings shall be commenced within aperiod of ninety days from the date of such order orwithin such further time as the Court may determine.(3) Once the arbitral tribunal has been constituted, theCourt shall not entertain an application under sub-section (1), unless the Court finds that circumstancesexist which may not render the remedy providedunder section 17 efficacious.]”“17. Interim measures ordered by arbitral tribunal.—(1) A party may, during the arbitral proceedings, apply tothe arbitral tribunal—(i) for the appointment of a guardian for a minoror person of unsound mind for the purposes ofarbitral proceedings; or(ii) for an interim measure of protection in respectof any of the following matters, namely:—(a) the preservation, interim custody or sale ofany goods which are the subject-matter of thearbitration agreement;(b) securing the amount in dispute in thearbitration;(c) the detention, preservation or inspection ofany property or thing which is the subject-matter ofthe dispute in arbitration, or as to which any questionmay arise therein and authorising for any of theaforesaid purposes any person to enter upon any landor building in the possession of any party, orauthorising any samples to be taken, or anyobservation to be made, or experiment to be tried,which may be necessary or expedient for the purposeof obtaining full information or evidence;(d) interim injunction or the appointment of areceiver;(e) such other interim measure of protection asmay appear to the arbitral tribunal to be just andconvenient, and the arbitral tribunal shall have thesame power for making orders, as the court has forkhs/Sep.2024/1690 - 10 -the purpose of, and in relation to, any proceedingsbefore it.(2) Subject to any orders passed in an appeal undersection 37, any order issued by the arbitral tribunalunder this section shall be deemed to be an order ofthe Court for all purposes and shall be enforceableunder the Code of Civil Procedure,1908 (5 of 1908),in the same manner as if it were an order of theCourt.”4.A party can make an application for securing the amount indispute in arbitration. There is no dispute that the arbitrationproceedings are pending since April, 2023. Notices have been issuedand the parties have appeared in the said proceedings.5.Thus, there is a statutory provision, which is engrafted inthe Arbitration and Conciliation Act, 1996, for the purposes of securingthe interest of the party, and that provision enables the Claimantsbefore us to seek an order from the Arbitrator for securing the amount,granted by the competent authority, during the pendency of theproceedings in arbitration. Such applications have still not been madeby these Petitioners.6.In the affidavit in reply, it is seriously canvassed by NHAI,khs/Sep.2024/1690

Arguments

- 4 -932 WRIT PETITION NO. 10012 OF 2024INDRAJEET RAMBHAJI KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND933 WRIT PETITION NO. 10013 OF 2024BALASAHEB MARUTI PATARE AND OTHERSVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND934 WRIT PETITION NO. 10015 OF 2024TUKARAM VISHVNATH KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND935 WRIT PETITION NO. 10016 OF 2024GORKSH SHRIDHAR KADAM AND ANOTHERVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND936 WRIT PETITION NO. 10017 OF 2024SURYABHAN SAHEBRAO KADAMVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND937 WRIT PETITION NO. 10018 OF 2024CHAGAN ABHILAJI KADAMVERSUSTHE UNION OF INDIA THR ITS SECRETARY AND OTHERSAND938 WRIT PETITION NO. 10019 OF 2024CHANDRABHAN MOHAN KADAMVERSUSkhs/Sep.2024/1690 - 5 -THE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND939 WRIT PETITION NO. 10020 OF 2024MADHUKAR DEVRAM KADAM AND OTHERSVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND940 WRIT PETITION NO. 10021 OF 2024JAYRAM BABAURAV KADAM AND ANOTHERVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARY AND OTHERSAND941 WRIT PETITION NO. 10022 OF 2024TABAJI DHONDIBA KARALEVERSUSTHE UNION OF INDIAAND942 WRIT PETITION NO. 10023 OF 2024BABASAHEB VISHWANATH BHAGATVERSUSTHE UNION OF INDIA, THROUGH ITS SECRETARYAND943 WRIT PETITION NO. 10024 OF 2024LAXMAN FAKIRA BHAGATVERSUSTHE UNION OF INDIAAND944 WRIT PETITION NO. 10025 OF 2024ANIL RAMBHAU IWALEVERSUSTHE UNION OF INDIA THROUGH ITS SECRETARYAND945 WRIT PETITION NO. 10026 OF 2024khs/Sep.2024/1690 - 6 -BHAUSAHEB SHRIPATI BHAGATVERSUSTHE UNION OF INDIAAND946 WRIT PETITION NO. 10027 OF 2024EKNATH SAVLERAM BHAGATVERSUSTHE UNION OF INDIAAND948 WRIT PETITION NO. 10038 OF 2024SUDAM LAXMAN BHAGATVERSUSTHE UNION OF INDIAAND949 WRIT PETITION NO. 10039 OF 2024MADHAV NAMDEV SHINDEVERSUSTHE UNION OF INDIAMr.S.B.Tarde, Advocate for the Petitioners. Mr.A.B.Girase, Government Pleader a/w Mr.S.K.Tambe, Additional GP,Mr.M.M.Nerlikar, Mr.N.D.Batule, Mr.S.R.Wakale,Mr.V.M.Kagne, Ms.NehaKamble, AGPs’ for the Respondent/State in respective Petitions. Mr.A.G.Talhar, DSGI a/w Mr.R.B.Bhosale, Mr.S.W.Munde, Mr.A.N.Patale,Mrs.Sudha Chintamani, Mr.R.B.Bagul, Mr.D.B.Gaikwad, Mr.S.S.Deve,Mr.M.A.Golegaonkar, Standing Counsels for Union of India in respectivePetitions. Mr.A.P.Bhandari i/b Hinge and Deshmukh Association, for RespondentNo.4 in WP No.1690/2024.Mr.Sagar Ladda, Advocate for the Responent/N.H.A.I.khs/Sep.2024/1690

Decision

- 11 -that these Petitioners have caused improvements in the form ofplantation of fruit bearing trees, construction of compound wall,construction of concrete road, sheds, underground storage water tank,etc. after publication of the notification under Section 3-A of theNational Highways Act, 1956. It is also canvassed that bloated orexaggerated sale instances have been cited in order to orchestratehigher compensation amount. According to the NHAI, the assets areimproved and created after the notification under Section 3-A and thisneeds proper investigation.7.The learned Advocates for the Petitioners have informed usthat in some cases, some Claimants have filed their applications seekinga direction from the Arbitrator to the Acquiring Body to deposit theamounts before the Arbitrator. Such applications are invariably keptpending.8.In view of the above, these Writ Petitions are disposed offwith the following directions:-(a)Keeping in focus several contentious issues, we deem itappropriate to direct these Petitioners to tender their applications forkhs/Sep.2024/1690 - 12 -seeking directions from the Arbitrator to order the NHAI to deposit theamounts before the Arbitrator. Such applications shall be filed until25.09.2024. (b)The Advocate representing the NHAI or any Authority concerned,before the Arbitrator, shall collect such applications, which would befiled until 25.09.2024. (c)The NHAI shall enter their replies, on or before 03.10.2024.(d)The Arbitrator would permit the learned Advocates to canvasstheir submissions on 07.10.2024 and thereafter, pass an order on thesaid applications, on 21.10.2024.(e)The parties to the arbitration shall, accordingly, appear before theArbitrator on 25.09.2024, 03.10.2024, 07.10.2024 and 21.10.2024.Notices are dispensed with.(f)Needless to state, if the Arbitrator directs the NHAI todeposit any portion of the compensation amount, it shall specify aparticular duration, in view of Rule 3 of the National Highways(manner of depositing the amount by the Central Government; makingrequisite funds available to the competent authority for acquisition ofland) Rules, 2019.(g)Since we are informed that there are several suchkhs/Sep.2024/1690 - 13 -applications pending, we deem it appropriate to record that suchapplications, either for interim stay or for securing the amount indispute in arbitration, shall not be kept pending beyond 60 days fromthe date of appearance of the parties.(h)Adjournments should not be granted on unreasonable ortrivial ground and the Arbitrator would endeavour to decide suchapplications, within 60 days. ( Y.G.KHOBRAGADE, J. ) ( RAVINDRA V. GHUGE, J.)khs/Sep.2024/1690

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