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Himachal Pradesh High Court Grants Time Extension in Land Acquisition Arbitration

26 March 2025
In a significant legal development, the High Court of Himachal Pradesh has intervened to extend the timeline for arbitration proceedings related to a critical highway land acquisition project in the Mandi region.

The case, presided over by Hon'ble Justice Ranjan Sharma, involves multiple petitions by landowners Gopinder Singh and Narender Singh against the Land Acquisition Officer and National Highways Authority of India (NHAI). The dispute centers around land acquisition for the Mandi-Gagal-Baggi-Janjehi and Shimla highway project (NH-21).

Key Legal Insights

The court's ruling primarily focused on Section 29A of the Arbitration and Conciliation Act, which typically mandates arbitration proceedings to be completed within 18 months. In this instance, the arbitration process had been ongoing since 2018 but faced significant delays due to multiple factors.

Reasons for Time Extension

Justice Sharma highlighted several critical reasons for extending the arbitration timeline:

  1. COVID-19 Pandemic: Lockdown disruptions from March 2020 to February 2022 significantly impacted proceedings
  2. Administrative Challenges: The arbitrator, who is also the Divisional Commissioner, had multiple administrative responsibilities
  3. Procedural Delays: NHAI's non-filing of replies and other procedural complications
Judicial Observations

The court emphasized that "parties cannot be made to suffer due to reasons not attributable to them." Justice Sharma referenced a Supreme Court precedent (TATA Sons Pvt. Ltd. vs. Siva Industries) to support the extension.

Specific Directions

The court's order included critical directions:

  • Quashing the previous order terminating the arbitrator's mandate
  • Restoring the arbitration petitions to their original position
  • Mandating completion of arbitral proceedings within six months
  • Preserving all rights and contentions of involved parties
Broader Implications

This ruling sets an important precedent for handling arbitration delays, particularly in infrastructure and land acquisition projects. It demonstrates the judiciary's nuanced approach to procedural challenges, balancing strict timelines with practical considerations.

The High Court's intervention ensures that the land acquisition dispute for the NH-21 highway project will continue, providing a fair hearing to all parties involved while acknowledging the extraordinary challenges posed by the pandemic and administrative complexities.

Read The Judgment Here

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keywords: land acquisition, arbitration, highway project, himachal pradesh, judicial extension, nhai

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