Court cannot enhance market value of land determined by Arbitrator: HC

S Shyam Prasad | NT

Bengaluru: The High Court of Karnataka has said that the Court has no power to enhance the market value of land which has been determined by an Arbitrator.

It can only set aside the award or affirm the award but not change the award.

The HC bench of Justice Alok Aradhe and Justice Anant Ramanath Hegde were hearing an appeal filed by BN Hanumantha Reddy against the Special Land Acquisition Officer and the Project Director, Hyderabad Benglauru Road of the National Highway Authority of India.

Reddy’s land in Gantamvaripalli in Bagepalli taluk was acquired by the NHAI for the road project. After a preliminary notification in 2005, a final notification was issued in April 2006.

The Land Acquisition Officer passed an award of Rs 1,09,834 per acre. Aggrieved by the quantum of compensation awarded, Reddy filed an application before the Arbitrator seeking enhancement.

NHAO contested the matter. The Arbitrator on September 14, 2015 enhanced the compensation to Rs 4,40,000 per acre as the market value of the land. NHAI accepted this award.

Not happy with the award, Reddy approached the District Court Jduge, Chikkaballpur against the award. The court dismissed the suit on the premise that the Court has no jurisdiction to enhance the market value of the land fixed by the Arbitrator.

Reddy then approached the HC with an appeal in 2016. The HC bench gave its judgement on the appeal recently. The HC in its order said that the Supreme Court has held that courts do not have power to enhance market value determined by Arbitrator.

“In terms of the law laid down by the Hon'ble Apex Court under Section 34 of the (Arbitration and Conciliation) Act of 1996 the Court acting under Section 34 of the Act of 1996, has no power to enhance the market value of the land determined by the Arbitrator. The Court has the power to set aside the award, to affirm the award if any of the grounds enumerated under Section 34 of the Act are made out,” the HC said.

The HC found no reason to change the view of the lower court. “the learned District judge has dismissed the petition on the ground that the Court has no power to enhance the market value of the land acquired. This Court does not find any error in it. It is also relevant to note no case is made out in the application filed under Section 34 of the Act of 1996, to set aside the award,” it said.

Dismissing the appeal, the HC said, “This being the position, this Court is of the view that no ground is made out by the appellant to interfere with the impugned judgment dated 09.11.2016. Accordingly, the appeal is dismissed.” (MFA 8674/2016)