NHAI Act Reference Dismissed For Default; Challenge Award Under Section 34, Not Through Writ: Patna High Court

NHAI Act Reference Dismissed For Default; Challenge Award Under Section 34, Not Through Writ: Patna High Court

The Patna High Court's Justice Rajiv Roy has ruled that a writ petition cannot be maintained to contest an arbitrator's order dismissing a reference under the NHAI Act for default. The court held that the aggrieved party must challenge the award under Section 34 of the Act.

The NHAI, as the respondent, acquired the petitioner's land, categorizing it as 'Developing Land' for the construction of the Chhapra-Gopalganj Highway.

Discontented with the compensation amount awarded by the respondent authority, the petitioner initiated a reference under Section 3(G)(5) of the NHAI Act before the arbitrator. However, the petitioner failed to attend the arbitrator's hearings on multiple occasions, leading to the dismissal of the reference through an order dated 23.09.2022. Dissatisfied with this decision, the petitioner submitted an application for the restoration of the reference.

The respondent contested the maintainability of the petition, arguing that it is not admissible as the petitioner has the alternative of challenging the award under the provisions of the NHAI Act.

The Court noted that the reference was dismissed due to non-prosecution because the petitioner failed to appear on several occasions, and the appeal was rejected by the arbitrator, who stated that it lacked the authority to reinstate the dismissed reference.

The Court determined that a writ petition is not sustainable for contesting an order by an arbitrator dismissing a reference under the NHAI Act due to default. Instead, it ruled that the aggrieved party should challenge the award under Section 34 of the Act.

The Court granted the petitioner the liberty to pursue the statutory remedy and disposed of the petition.