- 1 - HC-KAR NC: 2026:KHC:6568 MFA No. 8436 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MS. JUSTICE JYOTI M MISCELLANEOUS FIRST APPEAL NO.8436 OF 2023 (AA) BETWEEN: NATIONAL HIGHWAYS AUTHORITY OF INDIA PROJECT IMPLEMENTATION UNIT BANGALORE SY.NO. 13, 14TH KM, NAGASANDRA, BANGALORE-TUMKUR ROAD, BANGALORE-560 073. REP BY ITS PROJECT DIRECTOR. K B JAYAKUMARA …APPELLANT (BY SMT. SHALINI, ADVOCATE FOR SRI. PRAKASHA ANGADI B.V., ADVOCATE) AND: 1. SRI VENKATARAMANAPPA S/O LATE DASAPPA, AGED ABOUT 45 YEARS, R/AT BALEPURA VILLAGE, DEVANAHALLI TALUKU, BANGALORE RURAL DISTRICT. 2. THE ARBITRATOR AND DEPUTY COMMISSIONER BANGALORE RURAL DISTRICT, DEVANAHALLI (BEERASANDRA) 3. THE SPECIAL LAND ACQUISITION OFFICER AND COMPETENT AUTHORITY (NHAI) SOMPURA HOSKOTE SECTION, NEAR SHRIGANDHA PETROL BUNK, Digitally signed by PREMCHANDRA M R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:6568 MFA No. 8436 of 2023 SITE OFFICE NELAMANGALA, NELAMANGALA. …RESPONDENTS (BY SRI.MANJUNATHA RAYAPPA, AGA FOR R2; VIDE ORDER DATED 28.11.2024, NOTICE TO R3 DISPENSED WITH; R1 SERVED AND UNREPRESENTED) THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 37(1)(c) OF ARBITRATION AND CONCILIATION ACT 1996. THIS MISCELLANEOUS FIRST APPEAL IS LISTED FOR ADMISSION, THIS DAY, THE JUDGMENT IS DELIVERED AS UNDER: ORAL JUDGMENT Smt.Shalini., counsel on behalf of Sri.Prakasha Angadi.B.V., for the appellant and Sri.Manjunath Rayappa., AGA for respondent No.2 have appeared in person. 2. The captioned appeal is filed to set aside the judgment dated 03.10.2023, passed by the Court of V Additional District and Sessions Judge at Bangalore in A.P.No.15058/2022 and the Arbitral Award dated 24.05.2022, passed by the second respondent, insofar as the enhancement made at the rate of 100% and award of - 3 - HC-KAR NC: 2026:KHC:6568 MFA No. 8436 of 2023 interest at 9% from the date of taking possession till the deposit of compensation. 3. Counsel for the respective parties presented several contentions. Heard the arguments and perused the papers with utmost care. 4. The Government of India, for development, maintenance, management, upgradation and widening of National Highway No. 207, amongst other lands, acquired the land bearing Sy.No.62 measuring 111 square meters belonging to the first respondent situated at Balepura Village, Devanahalli Taluk. The SLAO passed the award following the circular, and accordingly award came to be passed on 15.01.2013, determining the compensation. The first respondent sought arbitration in 2016, and the arbitrator enhanced the compensation at 100%. Perused the award with care. The impugned award suffers from patent illegality as the arbitrator has arbitrarily enhanced the compensation by 100% over the SLAO award without - 4 - HC-KAR NC: 2026:KHC:6568 MFA No. 8436 of 2023 any supporting evidence. The finding is based on no evidence at all and represents a 'guess-timate' that is perverse and shocking to the conscience of the Court. The methodology adopts a 'guesswork' approach, unsupported by documentation. The 100% enhancement of compensation coupled with a 9% interest rate is legally unsustainable, arbitrary, and contrary to established statutory provisions. Such an award lacks a reasonable basis, violates prescribed statutory rates, and exceeds the legal framework for compensation enhancement. I may venture to say that the enhancement lacks a nexus with the evidence on record. Notwithstanding the delay in invoking arbitration, the Arbitrator entertained the claim and awarded enhanced compensation. Furthermore, the District Court erred in law and fact by failing to consider the inordinate, unexplained delay by the Respondent in invoking the arbitration clause, thereby allowing a stale claim to proceed. The District Court grossly erred in law by failing to appreciate that under Section 3G(7)(a) of the - 5 - HC-KAR NC: 2026:KHC:6568 MFA No. 8436 of 2023 National Highways Act, 1956, the determination of market value and status of the land must be strictly pegged to the date of publication of the preliminary notification under Section 3A. Viewed from any perspective, the Impugned Award and the subsequent judgment of the District Court are in direct contravention of established legal principles; therefore, they are fundamentally flawed and liable to be set aside. 5. For the foregoing reasons, the judgment dated 03.10.2023, passed by the V Additional District and Sessions Judge, Bengaluru Rural District, in A.P.No.15058/2022 and the Award dated 24.05.2022 passed by the second respondent are set aside. The awarded passed by the SLAO is confirmed. 6. Resultantly, the Miscellaneous First Appeal is allowed. - 6 - HC-KAR NC: 2026:KHC:6568 MFA No. 8436 of 2023 7. Because of disposal of the appeal, interim order granted if any stands discharged and pending interlocutory applications if any are disposed of. SD/- (JYOTI M) JUDGE MRP List No.: 1 Sl No.: 43