Synopsis

NHAI challenged an arbitral award passed under Section 3G(5) of the National Highways Act, 1956 that determined compensation for acquired land based on the highest jantri value of the village plus 5% enhancement. The Commercial Court dismissed NHAI’s Section 34 petition. NHAI then filed an appeal under Section 37. The Gujarat High Court dismissed the appeal, holding that: (i) the Arbitrator (District Collector) was required to follow Section 26 of the 2013 Act as settled in NHAI v. Nagaraju (2022); (ii) jantri is a valid statutory criterion; (iii) factual findings on valuation cannot be reappreciated under Sections 34 or 37; (iv) objections regarding unreasoned award, lack of opportunity, and unsigned award were either cured (signed copy produced) or not raised during arbitration; (v) mere disagreement with valuation methodology does not constitute patent illegality. The appeal was dismissed.

Court: High Court of Gujarat at Ahmedabad

Coram: Hon’ble the Chief Justice Mrs. Justice Sunita Agarwal and Hon’ble Mr. Justice D.N. Ray (Division Bench)

Date of Judgment: 20th April 2026

Citation: R/First Appeal No.1567 of 2026 (unreported)

Core Law: Arbitration and Conciliation Act, 1996 – Sections 34, 37; National Highways Act, 1956 – Section 3G(5); Right to Fair Compensation Act, 2013 – Section 26

1. Proper heading of the judgment

High court of gujarat at ahmedabad

R/first appeal no.1567 of 2026 with civil application (for stay) no.1 of 2026

National highways authority of india (appellant) vs. Trikambhai mansangbhai solanki & ors. (respondents)

Coram: hon’ble the chief justice mrs. justice sunita agarwal and hon’ble mr. justice d.n. ray (division bench)

Date: 20th april, 2026

2. Legal framework

Major laws and provisions involved:

• Arbitration and conciliation act, 1996 – section 34 (petition to set aside arbitral award), section 37 (appeal against order under section 34), section 31(3) (requirement of reasoned award), section 34(2A) (patent illegality ground for domestic awards)

• National highways act, 1956 – section 3g(5) (statutory arbitration by District Collector for compensation determination)

• Right to fair compensation and transparency in land acquisition, rehabilitation and resettlement act, 2013 – section 26 (factors for determining market value of acquired land, including government guideline value/jantri)

Subject matter of the judgment:

Whether an appeal under Section 37 of the Arbitration Act lies against dismissal of a Section 34 petition challenging an arbitral award under the National Highways Act, when the challenge is based on alleged illegality in valuation (jantri method), lack of reasoning, and procedural irregularities; and what is the permissible scope of interference by the High Court in such appeals.

Key legal principles applied:

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