25 April 2024 Arbitration Law >> Business & Commercial Law  

A landowner is disputing the compensation offered by the government for their property acquired to widen a National Highway. The crux of the issue lies in the disagreement over the property's value.

The landowner argues that the authorities categorized their land under the wrong category, resulting in a significantly lower compensation amount. They believe their land should have been classified based on its commercial potential due to its location near the highway.

The dispute went into arbitration, a process where an impartial third party (arbitrator) settles disagreements. The landowner requested the appointment of an expert to assess the land's commercial value and strengthen their case.

However, the arbitrator rejected the request, prompting the landowner to approach the court. The court ruled in favor of the landowner, finding the arbitrator's decision unreasonable.

The court's order mandates the arbitrator to reconsider the landowner's request for an expert evaluation. The arbitrator must take into account the specific arguments presented by the landowner, along with previous directions from a higher court and relevant legal precedents. The landowner will also be given a chance to present their case during this re-evaluation.

A final decision regarding the expert appointment is expected within three weeks of the court order reaching the arbitrator. This case highlights the importance of proper land valuation during acquisition processes and the landowner's right to challenge such decisions through arbitration and legal recourse.

  Arbitration and Conciliation Act, 1996