Himachal Pradesh High Court Orders Arbitrator To Complete NHAI Land Compensation Case By 4 December 2026

On 3 June, the Himachal Pradesh High Court held that when a statute requires an authority or arbitrator to perform an act within a prescribed time, the obligation lies on that authority to comply with the statutory timeline and complete the task accordingly.

A Single Bench of Justice Romesh Verma, while hearing Mohan Singh (deceased) through legal representatives v. National Highways Authority of India and others, directed the Divisional Commissioner-cum-Arbitrator, Shimla, to conclude the arbitration proceedings and pass the award on or before 4 December 2026. He observed:

“This Court is of the view that when a statute envisages an authority, be it an Arbitrator, to do a particular act in a particular manner and in a prescribed time schedule, then the onus is upon the said authority/Arbitrator to perform the task entrusted to it within the time schedule prescribed in the statute.”

The dispute arose from the acquisition of land in District Shimla for a national highway project under the National Highways Act, 1956. The landowners challenged the compensation awarded by the competent authority and initiated arbitration proceedings before the Divisional Commissioner-cum-Arbitrator, Shimla in 2017.

The proceedings remained pending for several years, prompting the landowners to approach the High Court under Article 227. Mohan Singh (since deceased), through his legal representatives, sought intervention and extension of time for completion of the arbitration, citing delays due to unforeseen circumstances.

The High Court noted that the Arbitrator had closed the proceedings after the time available for passing the award expired, despite completion of pleadings. It also found that the proceedings did not progress in accordance with the Arbitration and Conciliation Act, 1996.

Reiterating statutory compliance, the Court held that when a statute prescribes the manner and time for performing a function, the authority must strictly adhere to both. It further held that “delay, if any, has to be bonafide and explainable.”

The Bench directed the Divisional Commissioner-cum-Arbitrator, Shimla, exercising powers under the National Highways Act, 1956, to conclude the arbitration proceedings and pass the arbitral award on or before 4 December 2026.

Accordingly, the High Court disposed of the petition.

Appearances for petitioners (Mohan Singh (deceased) through LRs.): Advocate Kanwar Bhupinder Singh.

Appearances for respondent No. 1 (National Highways Authority of India): Advocate Karan Sharma.

Appearances for respondent No. 2 (State of Himachal Pradesh): Additional Advocate General, Mr. Diwakar Dev Sharma.