LI Network
Published on: February 20, 2024 at 14:17 IST
The Andhra Pradesh High Court, led by Chief Justice Dhiraj Singh Thakur and Justice R. Raghunandan Rao, clarified that a writ petition cannot be utilized to enforce an arbitration award already challenged under Section 34 of the Arbitration and Conciliation Act, 1996.
The case involved M/s. Vijayanagaram Hatcheries Pvt. Ltd. (“Respondent”), which filed a writ petition seeking the enforcement of an arbitration award in the High Court.
The Respondent contended that despite the National Highways Authority of India (“Appellant”) acquiring its land and determining compensation through arbitration, the payment had not been released.
The single Judge, in the initial judgment, directed the Appellant to deposit the compensation amount, considering the finality of the award.
However, the Appellant, arguing that the arbitration award was under challenge under Section 34 of the Arbitration and Conciliation Act, filed a writ appeal.
The High Court, citing the Supreme Court’s decision in National Highways Authority of India Vs. Sheetal Jaidev Vade & Others, disapproved of entertaining writ petitions for executing awards. It emphasized that such petitions transform the court into an executing authority.
The High Court recognized that the Appellant had initiated proceedings under Section 34 of the Arbitration Act, which were still pending before the District Judge.
Consequently, the High Court held the judgment and order of the single judge as unsustainable and set it aside. The case title is “The Project Director, National Highways Authority of India vs M/s. Vijayanagaram Hatcheries Pvt. Ltd.” with the case number WRIT APPEAL No.1170 of 2023.