In Brief
The Supreme Court examined appeals by NHAI against arbitral awards determining land acquisition compensation under the National Highways Act. The Court held that while the arbitrator could rely on a guideline value notification dated 28.03.2016 (subsequent to the preliminary acquisition notification), it erred by applying that value without proper pleading, evidence, or opportunity for NHAI to rebut, and failed to assign reasons for treating different layouts as comparable to the acquired land. This violated natural justice principles and Section 31(3) of the Arbitration Act. The Court clarified that RFCTLARR Act 2013 Sections 26-28 apply to NH acquisitions, and set aside the awards, remitting them to the arbitrator with directions to reconsider on the basis of proper evidence and reasons.
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