HC upholds arbitral award on NH land compensation, dismisses NHAI appeals

16/02/2026

JAMMU, Feb 15: The Jammu and Kashmir and Ladakh High Court on Wednesday dismissed appeals filed by the National Highways Authority of India (NHAI) challen-ging arbitral awards on land compensation for the Delhi-Ludhiana-Amritsar-Katra Expressway project, holding that courts cannot re-appreciate evidence while exercising limited jurisdiction under the Arbitration and Conciliation Act.
A bench of Justice Javed Iqbal Wani, while upholding the arbitral award as well as the order of the Principal District Judge, Reasi, said interference under Sections 34 and 37 is permissible only in exceptional cases involving patent illegality or violation of public policy.
The landowners were strongly represented by a team of senior counsel including Senior Advocate Aseem Kumar Sawhney, Tania Bukhari Advocate, Kasif Malik Advocate, Harsh advocate and Khushoob Advocate in one of petition, defended the arbitral findings and submitted that the scope of appeal under Section 37 was extremely narrow and did not permit a "second evaluation of facts under the guise of perversity.”
"The appellate court under Section 37 does not sit as a court of correction over the arbitral award. Its jurisdiction is supervisory and not appellate in the conventional sense," the court observed.
The appeals related to land acquisition at Village Kundrorian, Tehsil Katra, district Reasi, where compensation had been determined under the National Highways Act for construction of the expressway. The statutory arbitrator - the Divisional Commissioner, Jammu - reassessed the market value and fixed compensation at Rs 56.62 lakh per kanal.
NHAI had challenged the award, alleging improper reliance on sale deeds of small land parcels. The High Court, however, rejected the plea, noting that the arbitrator had adopted a reasoned methodology keeping in view the location and potential of the acquired land.
"Mere errors of fact or erroneous appreciation of evidence by the arbitrator would not constitute valid grounds for interference," the bench said.
Appearing for NHAI, senior advocate Gagan Basotra argued that the award suffered from serious illegality and violation of natural justice. Other counsel for the respondents included senior advocates R.S. Thakur and Rajnish Raina.
In a connected writ petition, the High Court also directed the authorities to disburse compensation within two months, holding that withholding payment after vesting of land in the Central Government was illegal and violative of Article 300A.
"Allowing the respondents to enjoy the benefit of acquisition without bearing its statutory burden is impermissible in law," the court ruled.
The judgment, delivered on February 12, has been marked reportable.

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