Does Availability of an Alternate Remedy under Section 34 of the Arbitration and Conciliation Act Bar a Writ Petition Challenging Compensation Awards under the National Highways Act?

The Court held that when a statutory alternative remedy under Section 34 of the Arbitration and Conciliation Act, 1996, is available for challenging an arbitral award (including compensation calculation for acquired land and trees), writ jurisdiction should not be invoked; the writ petition was disposed of, permitting the petitioner to approach the appropriate forum. This reaffirms established precedent restricting writs when efficacious remedies exist and is binding authority for similar land acquisition and arbitration cases.

 

Summary

Category Data
Case Name WP/733/2022 of SESHAM VENKATA RAO Vs UNION OF INDIA CNR APHC010006042022
Date of Registration 06-01-2022
Decision Date 02-09-2025
Disposal Nature DISPOSED OF NO COSTS
Judgment Author B KRISHNA MOHAN
Court High Court of Andhra Pradesh at Amaravati
Bench Single Judge (B KRISHNA MOHAN, J.)
Precedent Value Binding within the State of Andhra Pradesh; persuasive for other jurisdictions
Type of Law Land Acquisition, Arbitration, Constitutional Law (Article 226)
Questions of Law Whether writ jurisdiction can be invoked to challenge arbitral awards in land acquisition matters where alternate statutory remedy exists.
Ratio Decidendi

The Court held that in light of the petitioner’s statutory remedy under Section 34 of the Arbitration and Conciliation Act, 1996, the writ petition is not maintainable for issues regarding compensation and interest/solatium.

The prior disposal of an earlier writ as “not pressed” preserved the petitioner’s right to remedy before the appropriate forum.

The period during which the writ was pending was directed to be excluded for limitation purposes.

The matter of awarding compensation for Teak trees can be raised in the alternative statutory forum.

Facts as Summarised by the Court

The petitioner was aggrieved by an arbitral award relating to compensation for acquired land and trees (including Teak trees) under the National Highways Act.

Compensation was allegedly insufficient, prompting a writ after prior proceedings.

Respondents submitted that statutory compensation, solatium, and opportunity had been provided as per law, and the petitioner had a remedy under Section 34 Arbitration and Conciliation Act.

Judgments Relied Upon Taramsingh v. Union of India (as relied upon by the petitioner)

Practical Impact

Category Impact
Binding On All subordinate courts in Andhra Pradesh and authorities concerned with land acquisition and arbitration awards.
Persuasive For Other High Courts and forums considering writ petitions in light of available statutory remedies.
Follows Principles restricting writ jurisdiction when efficacious alternative statutory remedies are available.

What’s New / What Lawyers Should Note

  • Reaffirms that writ jurisdiction under Article 226 is not maintainable where an efficacious alternate remedy (such as Section 34 of the Arbitration Act) exists for challenging arbitration awards, including in land acquisition cases.
  • Recognizes right to approach alternate forum is preserved even if earlier writ was disposed of as “not pressed.”
  • Orders exclusion of pendency period of the writ petition for limitation purposes for proceedings under Section 34.
  • Lawyers should seek remedies under the Arbitration and Conciliation Act before invoking extraordinary writ jurisdiction in similar cases.

Summary of Legal Reasoning

  • The Court reviewed the petitioner’s grievance that the award of compensation did not adequately include value for Teak trees.
  • Petitioner relied on Taramsingh v. Union of India, seeking interest and solatium on compensation.
  • Respondents argued that statutory benefits, including compensation and solatium, were duly awarded; arbitration followed principles of natural justice and the petitioner was afforded ample opportunity.
  • The 4th respondent’s counter highlighted the award under the National Highways Act included compensation for trees, and previous writ was disposed as “not pressed” with liberty to approach the proper forum.
  • The Court found that Section 34 of the Arbitration and Conciliation Act provides a statutory remedy, making the writ petition not maintainable.
  • Time spent pending writ will be excluded for limitation, protecting the petitioner’s substantive right to challenge in the appropriate forum.

Arguments by the Parties

Petitioner

  • The award did not properly compensate for Teak trees.
  • Interest and solatium were not paid as per the Taramsingh v. Union of India precedent.

Respondent

  • Compensation, 30% solatium, and 12% additional solatium were paid as per law.
  • Arbitration proceedings adhered to principles of natural justice; both parties were heard.
  • Petitioner has an efficacious alternate remedy under Section 34 of the Arbitration and Conciliation Act.
  • Previous writ petition W.P. No.16727 of 2015 was disposed of as “not pressed” with liberty to pursue other remedies.
  • Filing writ to avoid limitation proceedings is improper.

Factual Background

The petitioner, a teacher, challenged the arbitral award relating to compensation for land and Teak trees acquired under the National Highways Act. He claimed improper fixation of compensation and non-payment of interest and solatium. Earlier, a writ petition was disposed of with liberty to approach the appropriate forum. The respondents argued that proper compensation and solatium were already paid and that further grievance could be addressed by the remedy under Section 34 of the Arbitration and Conciliation Act.

Statutory Analysis

  • Article 226 of the Constitution of India: The court reiterated the limits on writ jurisdiction where adequate statutory remedies exist.
  • Section 34 of the Arbitration and Conciliation Act, 1996: Provides for challenging arbitral awards, including those under the National Highways Act regarding compensation.
  • National Highways Act, 1956: Compensation and solatium are payable as per statute; award was passed accordingly.
  • No novel interpretation or reading down of the provisions was done.

Procedural Innovations

The Court directed exclusion of time during which the writ petition was pending from the period of limitation for any proceedings under Section 34 of the Arbitration and Conciliation Act.

Alert Indicators

  • ✔ Precedent Followed – The Court followed settled law regarding non-maintainability of writs where efficacious alternate statutory remedies are available.

Citations

  • Taramsingh v. Union of India (relied upon by the petitioner).
  • No SCC/AIR/MANU or neutral citation was provided in the judgment extract.
  • Judgment date: 02-09-2025.
  • Reportable status was not specified.

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