The genesis of the dispute lies in a notification dated 28.07.2006 issued by the Central Government under Section 3A(1) of the National Highways Act, 1956 ("NH Act"), acquiring land in Baghpat, Uttar Pradesh. While some
CS Professional · Arbitration, Mediation and Conciliation · PYQS · December 2025
The genesis of the dispute lies in a notification dated 28.07.2006 issued by the Central Government under Section 3A(1) of the National Highways Act, 1956 ("NH Act"), acquiring land in Baghpat, Uttar Pradesh. While some land was acquired through due notification, possession of an additional portion was taken without formal acquisition, as per notification dated 08.02.2007. Aggrieved by the lack of compensation for such acquisition, the Petitioners filed a Writ Petition before the Delhi High Court seeking quashing of the acquisition and payment of compensation. Pursuant to the Court's directions, compensation was awarded in 2019. Dissatisfied with the quantum, the Petitioners approached the District Collector, Division Meerut under Sections 3G(5) and 3G(7) of the NH Act, seeking enhanced compensation. The claim was rejected on 16.10.2020, leading to the filing of a Section 34 petition under the A&C Act before the Delhi High Court. The Respondents raised a preliminary objection to the maintainability of the petition on the ground of lack of territorial jurisdiction, arguing that the arbitration proceedings, land, and prior actions all occurred within Baghpat, U.P., and hence, only the local court there would have jurisdiction. With reference to a decided case law, comment: What is the scope of Section 42 in determining jurisdiction where arbitration arises under a special statute like the National Highways Act?
Answer & Explanation:
In the case of Hariram & Ors v. National Highway Authority of India & Ors. the Hon'ble Apex Court have held that territorial jurisdiction lies with the court within whose jurisdiction the subject matter of the suit is situated, as well as the courts within whose jurisdiction the dispute resolution process, i.e., arbitration, is conducted. Furthermore, it has been consistently held that the moment the seat of arbitration is designated, it is akin to an exclusive jurisdiction clause. The legislature has intentionally given jurisdiction to two courts i.e. the court which would have jurisdiction where the cause of action is located and the courts where the arbitration takes place. This was necessary as on many occasions the agreement may provide for a seat of arbitration at a place which would be neutral to both the parties. Therefore, the courts where the arbitration takes place would be required to exercise supervisory control over the arbitral process. In National Highway Authority of India and Another v. Jagpal Singh Allahabad High Court held that under National Highway Act, Sections 3G(5)/3G(7) arbitration by District Collector occurs where land/proceedings are located (Baghpat, UP); thus, Baghpat civil court has exclusive jurisdiction for Section 34, not Delhi High Court despite NHAI HQ or prior writ. The Supreme Court has clarified that where arbitration is triggered under a special statute, such as Sections 3G(5) and 3G(7) of the National Highways Act, the determination of jurisdiction to be guided by: The place where the arbitration proceedings are conducted, The location of the subject matter (i.e., the acquired land), The court which would ordinarily have jurisdiction over the arbitral award under Section 34. Section 42 does not override the jurisdictional scheme of a special statute, nor does it permit forum selection based on prior constitutional proceedings. Its application is limited to ensuring procedural certainty within arbitration proceedings governed by the Arbitration Act, not to expand jurisdiction on the basis of writ litigation.
Topics: Arbitration and Conciliation Act, 1996
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