In Brief
The Supreme Court examined appeals challenging arbitral awards that enhanced land compensation under the National Highways Act from amounts fixed by the Special Land Acquisition Officer. The Court held that while guideline value notifications issued shortly after acquisition notifications may be considered, applying such values to acquired land without evidence of comparability, opportunity for the acquiring authority to rebut, or reasons recorded amounts to patent illegality violating natural justice principles and the Arbitration Act. The Court set aside the awards and remitted them for reconsideration, confirming that land acquisition compensation under the National Highways Act must be determined in accordance with the Fair Compensation and Transparency Act, 2013, which applies by virtue of notification extending its provisions. Courts must balance minimal interference in arbitration with ensuring just compensation determined according to law.
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