National Highways Authority of India v. Sayedabad Tea Company

Quick Summary

This case decides who appoints the arbitrator when land is acquired for highways. The National Highways Act, 1956 is a special law. It gives the Central Government the power to appoint an arbitrator under Section 3G(5) when compensation is disputed. Because the special law covers appointment, the High Court cannot use Section 11(6) of the Arbitration Act to appoint one.

Core Point Special law governs appointment → Section 11(6) is not available unless the special law is silent.

Issues

1. Does Section 11(6) of the Arbitration Act get excluded when Section 3G(5) of the National Highways Act applies?
2. Did the High Court have power to appoint an arbitrator despite the special statute?

Rules

• Special Act prevails: The National Highways Act, 1956 is a self-contained code for acquisition and compensation.
• Section 3G(5): On challenge to compensation, the Central Government appoints the arbitrator.
• Fallback only if silent: The Arbitration Act applies only where the Highways Act is silent.

If a special statute provides a complete appointment pathway, courts should follow it.

Arguments

Judgment (Held)

Supreme Court: The Calcutta High Court had no power to appoint an arbitrator under Section 11 in this scenario. The Highways Act provides a complete mechanism; the Arbitration Act applies only if that Act is silent, which it is not on appointment.

The Court ratified the Government-appointed arbitrator and directed an expeditious award. The High Court’s orders were set aside.

Ratio Decidendi

• A special statute (Highways Act) overrides the general Arbitration Act on matters it covers.
• Section 3G(5) specifically assigns appointment to the Central Government.
• Section 11(6) is a fallback, not a parallel path, where the special law is silent.

Why It Matters

In acquisition and compensation disputes under the Highways Act, parties must use the Section 3G(5) route. Courts will not bypass a clear special mechanism by invoking Section 11(6).

Key Takeaways

• Check if a special Act governs appointment before using Section 11.
• Government delay does not let courts replace a special-law process.
• Relief is through the special statute’s pathway unless it is silent.

Mnemonic + 3-Step Hook

Mnemonic: “SPECIAL FIRST”

1. SPECIAL statute gives the method.
2. FIRST follow Section 3G(5) appointment.
3. Use Section 11 only if silent.

3-Step Hook: Identify special law → Check appointment clause → Apply; no Section 11 if covered.

IRAC Outline

Glossary

Section 3G(5)

Highways Act clause empowering the Central Government to appoint an arbitrator for compensation disputes.

Section 11(6)

Arbitration Act provision allowing court appointment, but only where no special scheme governs.

Special Statute

A law that covers a field in detail and overrides general provisions on the same point.

FAQs

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