Plea Of Delay U/S 29A A&C Act Cannot Be Used Selectively By NHAI When Extensions Granted In Similar Land Acquisition Cases: HP High Court

The Himachal Pradesh High Court held that the National Highway Authority of India could not be permitted to raise the plea of delay and laches to defeat continuation of arbitral proceedings when extensions had already been granted and proceedings concluded in the cases of other similarly placed landowners. The court remarked that, having participated in the proceedings for almost nine years, NHAI could not invoke delay, particularly when the object of the Arbitration and Conciliation Act, 1996 is to ensure effective resolution of disputes.Justice Ranjan Sharma remarked that:“Respondents-NHAI cannot be permitted to take the plea of delay and laches when, in cases of other similarly placed landowners extension was given by this Court and proceedings were concluded…”The dispute arose from a land acquisition proceeding initiated for the four-laning of the Solan-Shimla portion of the National Highway. The land of the petitioner, late Sandesh Kumar was acquired pursuant to a notification issued under Section 3A of the National Highways Act, 1956. Aggrieved and dissatisfied with the compensation awarded by the Competent Authority for Land Acquisition, the landowner sought arbitration.After the 2015 award, the predecessor-in-interest of the petitioners filed a Reference Petition before the Arbitrator-cum-Divisional Commissioner, Shimla.However, despite continuation of arbitral proceedings for several years, the arbitrator passed a common order in 2023 closing multiple arbitration cases, including that of the petitioners, on the ground that the statutory time-limit under Section 29A of the Arbitration and Conciliation Act, 1996 had expired.The Court observed that delay occurred due to administrative lapses, COVID-related disruption, and clerical errors and other similar landowners' cases were decided after extension.The Court remarked that there was nothing on record to proved that the non-conclusion of arbitral proceedings was due to the petitioner. Thus, the Court directed to conclude the arbitral proceedings and decide the case. Case Name: Sandesh Kumar Deceased through his LRs v/s National Highway Authority of India and anotherCase No.: Arbitration Case No.351 of 2025Date of Decision: 26.11.2025For the Petitioner: Mr. Ashir Kaith, AdvocateFor the Respondent: Mr. Karan Sharma, Advocate, for respondent No.1- NHAI. Ms. Ayushi Negi, Deputy Advocate General for respondent No.2-State.Click Here To Read/Download Order

Plea Of Delay U/S 29A A&C Act Cannot Be Used Selectively By NHAI When Extensions Granted In Similar Land Acquisition Cases: HP High Court

Mehak Aggarwal

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