Case Title: National Highways Authority of India v. Sheetal Jaidev Vade
The Supreme Court disapproved the entertaining of writ petitions seeking execution of Arbitration awards passed against the National Highways Authority of India.
The Bench observed that “If the High Courts convert itself to the Executing Court and entertain the writ petitions under Article 226 of the Constitution of India to execute the award passed by the Arbitral Tribunal/Court, the High Courts would be flooded with the writ petitions to execute awards passed by the learned Arbitrator/Arbitral Tribunal/Arbitral Court.”
However, learned ASG has placed reliance on the order passed by this Court in Special Leave to Appeal No.12409 of 2022 passed in the case of The Project Director, National Highways Authority of India vs. Saraswatibai Chandrakant Shinde & Ors. by which, on a similar set of facts and circumstances this Court has directed the NHAI to deposit 50% of the compensation amount, as awarded by the Arbitral Tribunal with the Executing Court and has permitted the original landowners to withdraw the same unconditionally, and the balance amount of compensation as per the award to be passed under Section 34 of the Arbitration Act to be deposited by the NHAI with the Executing Court within four weeks after such determination.
The court further observed that High Court while passing directions in the impugned order has converted itself into the Executing Court.
The Court also strictly disapproved of this practice of filing petitions in the High Court or the top court rather than approaching the competent executing court and observed that “we would have set aside the impugned judgment and order passed by the High Court on the aforesaid ground alone. However, taking into consideration the similar order passed by this Court in the case of Saraswatibai Chandrakant Shinde (supra), we deem it appropriate to dispose of the present proceedings/appeal with the following directions:
(i) The NHAI shall deposit 50 per cent of the compensation amount, as awarded by the Arbitral Court, with the Executing Court within a period of four weeks. The said amount shall be released to the landowners unconditionally.
(ii) The learned District Court, before whom the proceedings under Section-34 of the Arbitration Act are pending, shall make an endeavour to decide such proceedings within a period of six months from the next date of hearing before the said court.
(iii) The balance amount of compensation as per the Award to be passed under Section 34 of the Arbitration Act, shall be deposited by the NHAI with the Executing Court within four weeks after such determination. The said amount shall also be released by the Executing Court in favour of the landowners subject to the rights and remedies available to the parties in law.”