- 1 - HC-KAR NC: 2025:KHC:30771-DB MFA No. 213 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF AUGUST, 2025 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C M JOSHI MISCELLANEOUS FIRST APPEAL NO. 213 OF 2025 (AA) BETWEEN: S. SRIDHAR, S/O. LATE SHANKARACHARI, AGED ABOUT 46 YEARS, R/@ 17/5, 9TH CROSS, CUBBONPET, BENGALURU-560 002. …APPELLANT (BY SRI B RAMESH, ADVOCATE) AND: 1. NATIONAL HIGHWAY AUTHORITY OF INDIA, OFF. AT SY NO.13, NAGASANDRA VILLAGE, 14 KM FROM BENGALURU-TUMKURU ROAD, BENGALURU-560 073. REP. BY ITS PROJECT DIRECTOR. 2. THE ARBITRATION AND SPECIAL DEPUTY COMMISSIONER-I, BENGALURU URBAN DISTRICT, HYDERABAD-BENGALURU SECTION (NH-7), OFFICE OF THE DEPUTY COMMISSIONER, 1ST FLOOR, KG ROAD, BENGALURU-560 009. 3. THE SPECIAL LAND ACQUISITION AND COMPETENT AUTHORITY, NATIONAL HIGHWAY AUTHORITY OF INDIA, HYDERABAD-BENGALURU SECTION (NH-7), NO.678/3, NEERUBHAVI, KEMPANNA LAYOUT, Digitally signed by NANDINI R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:30771-DB MFA No. 213 of 2025 HEBBAL, BENGALURU-560 009. REP. BY ITS SPECIAL LAND ACQUISITION OFFICER. …RESPONDENTS (BY MS. SHILPA GHANSHYAMBHAI SHAH, ADVOCATE FOR R-1 & 3) THIS MFA IS FILED UNDER SECTION 37(1)(c) OF THE ARBITRATION AND CONCILIATION ACT, AGAINST THE ORDER DATED 02.12.2024 PASSED IN AP.NO.43/2023 ON THE FILE OF THE II ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, BENGALURU CCH.NO.17 ALLOWING THE PETITION PRAYING TO CONFIRM THE ORDER DATED 26.06.2023. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C M JOSHI ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. The appellant has filed the present appeal under Section 37(1)(c) of the Arbitration and Conciliation Act [A & C Act], impugning an order dated 02.12.2024, [impugned order] passed by the learned Commercial Court [II Additional City Civil and Sessions Judge, Bengaluru] in AP No. 43/2023, captioned National Highway Authority of India v. Sri S. Shridhar and others. 2. The respondent No.1 [NHAI] had preferred the said petition under Section 34(2) of the A & C Act, impugning - 3 - HC-KAR NC: 2025:KHC:30771-DB MFA No. 213 of 2025 an Arbitral Award dated 26.06.2023 passed by the learned Arbitrator under Section 3G(5) of the National Highways Act, 1956. The NHAI is essentially aggrieved by the impugned award as it has enhanced the compensation awarded to respondent No.1 [appellant] for acquisition of his land measuring 3228 square feet located in Survey No. 40/5 of Meena Kunte Village. It is NHAI's case that the award was unreasonable as it found favour with the learned Commercial Court. The Arbitrator had enhanced the compensation by adding 75% [50% + 25%] of the gazetted value. However, it provided no reasons for such enhancement. The learned Commercial Court also found that the extant instructions for such an enhancement is not applicable. The appellant being aggrieved by the said decision has filed the present appeal. 3. A plain reading of the impugned award indicates that it is an unreasoned award and is thus liable to be set aside for that ground alone. The Arbitral Tribunal had not provided any reasons for enhancing the compensation by - 4 - HC-KAR NC: 2025:KHC:30771-DB MFA No. 213 of 2025 75%. In the event NHAI seeks enhanced compensation is required to be agitated, the same may be agitated in Arbitration. 4. We accordingly, dismiss the present appeal. However, it is clarified that if the appellant seeks a fresh reference within a period of two weeks from today, the time period from the date of the impugned award shall not be considered as a delay on the part of the appellant. 5. We also clarify all other rights and contentions of the parties are reserved, including the NHAI's contention that the initial reference was delayed. 6. Pending IAs, if any, stand disposed of. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (C M JOSHI) JUDGE tsn* List No.: 1 Sl No.: 37