New Claim For Enhancement Of Compensation From NHAI Based On Subsequent Change Of Land Use ; Barred By Limitation : Madhya Pradesh High Court
Live LawThe Madhya Pradesh High Court has held that the cause of action for referring the dispute to arbitrator under Section 3G of the National Highways Act, 1956 arises on the date of the determination of the amount of compensation by the competent authority under Section 3G of the Act. The bench of Justice Milind Ramesh Phadke held that though there is no period of limitation provided for referring the dispute to arbitrator under the said Section, however, it is governed by the residuary clause as contained under Article 137 of the Limitation Act wherein a period of 3 years is provided. Though the award was passed on 26.12.2012, however, it was acquired by the petitioner only in the year 2018, therefore, she filed the reference in the year 2021 within the prescribed limitation period. Analysis by the Court The Court observed that the award of compensation was passed on 26.12.2012 and the land of the petitioner was treated as an agricultural land and not a commercial land, therefore, the cause of action for referring the dispute to arbitrator arose on the same date in favour of the petitioner, however, the reference before the arbitrator was filed much later in the year 2021 which is patently beyond the period of limitation. The Court held that the cause of action to refer a dispute to arbitrator arises on the date of the award of compensation and any reference must be made within the limitation period.