Appeals filed against: Common judgment and orders dated 13‑02‑2024 and 22‑05‑2024 passed by the Division Bench of the High Court of Madhya Pradesh.
Award date: 31‑10‑2022, passed by the Additional Collector based on delegation order dated 27‑01‑2022.
Clarification date: 28‑11‑2022, Government of Madhya Pradesh Revenue Department withdrew delegation of arbitrator powers under Section 3G(5) of the National Highways Act, 1956.
Section 34 objections: Filed on 31‑10‑2022, withdrawn on 13‑02‑2023; restoration application allowed on 02‑09‑2024.
Order date: 19‑05‑2026.
Parties Involved
Petitioner: National Highways Authority of India (NHAI).
Respondent(s): Madanlal & Anr (individuals).
State authority: Government of Madhya Pradesh, Revenue Department (issued clarification).
Additional Collector: Issued the land‑acquisition compensation award.
Collector: State official whose delegation was questioned.
Counsel for Petitioner: Mr. Tushar Mehta (Solicitor General), Mr. Ankur Mittal (AOR), Mr. Ankur Saboo, Mr. Aviraj Pandey.
Counsel for Respondent(s): Mr. Devendra Singh (AOR), Mr. Raj Kumar Sharma, Mr. Saurav Sharma, Mr. Sunil Kumar.
Judges: Hon’ble Mr. Justice Pamidighantam Sri Narasima, Hon’ble Mr. Justice Alok Aradhe.
Issues / Allegations / Violations
Whether delegation of arbitrator powers to the Additional Collector under Section 3G(5) of the National Highways Act, 1956 is legally valid.
Validity of the 31‑Oct‑2022 award after the 28‑Nov‑2022 state clarification withdrawing such delegation.
Whether the Collector could recall the award in the absence of an express statutory provision for review.
Withdrawal and subsequent restoration of Section 34 objections under the Arbitration and Conciliation Act, 1996.
Findings & Observations
The Court observed that the award was passed on 31‑Oct‑2022, before the clarification dated 28‑Nov‑2022; therefore, the award is not affected by the later clarification.
The High Court’s judgment directing that the Collector could not recall the award is affirmed.
The question of law regarding the legality of delegation under the General Clauses Act is deemed academic for the present case and left open for future consideration.
Statutory remedies under Sections 34 and 37 of the Arbitration Act remain available to either party.
The application filed by NHAI for restoration of its withdrawn Section 34 objections was allowed on 02‑Sep‑2024.
Penalties / Settlements / Directions
No monetary penalties or fines were imposed.
The Court condoned delay, granted leave, and disposed of all civil appeals in accordance with the signed order.
Any pending applications, if existent, were also ordered to stand disposed of.
Corrective Actions & Future Obligations
Parties may pursue the statutory remedies under Sections 34 and 37 of the Arbitration Act if they deem necessary.
The legal issue concerning the delegation of arbitrator powers under Section 3G(5) of the National Highways Act is left open for determination in an appropriate future case.
Final Ruling & Enforcement
The Supreme Court’s order (19‑May‑2026) condoned filing delays, granted leave, and disposed of the civil appeals filed by NHAI.
The award dated 31‑Oct‑2022, passed by the Additional Collector, is restored and remains effective.
No further enforcement actions were stipulated beyond the disposal of the appeals and pending applications.
