Thane Court Rejects DFCCIL Plea, Orders Compensation for Palghar Farmer
The Thane Sessions Court has dismissed an application filed by the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) challenging an arbitral award that directed the corporation to acquire a farmer's residual land and pay compensation.
Presided over by District and Additional Sessions Judge P.V. Ghule, the court upheld the arbitrator's ruling in favour of farmer Pradip Jawaharlal Karnavat. In its 16-page order, the court dismissed DFCCIL's plea filed under Section 34 of the Arbitration and Conciliation Act, 1996, holding that there was no error or patent illegality in the arbitral award warranting interference.
The dispute pertains to land in Saravali village in Dahanu taluka, Palghar district, acquired for the 1,483-kilometre Western Dedicated Freight Corridor linking JNPT in Maharashtra to Dadri in Haryana. Following the original acquisition award in April 2018, Karnavat approached the arbitrator through two separate petitions—one seeking enhanced compensation and another demanding the acquisition of the unviable residual portion of his land.
On January 7, 2022, the arbitrator directed the acquisition of 0.0910 hectare of residual land and ordered compensation at a base rate of Rs 39.63 lakh per hectare, along with other statutory benefits and 100 per cent solatium.
DFCCIL challenged the award before the Thane court, claiming the arbitrator had exceeded his jurisdiction and granted relief that was never requested. The court rejected this contention, observing that DFCCIL had created unnecessary confusion by mixing up petition numbers. Court records showed that Karnavat had specifically requested the acquisition of the balance 0.0910 hectare in Petition No. 197/2019.
The court observed that the remaining land was split into three portions and situated within 30 metres of the railway boundary, rendering it unviable and useless to the owner. Citing the Indian Railway Works Manual, which specifies maintaining open space of approximately 30 metres from the railway boundary, the court ruled that the residual plot could not be used for construction.
Judge Ghule concluded that the arbitral award was well-reasoned and grounded in legal principles, including Supreme Court precedents on land valuation, before dismissing DFCCIL's application.
