Thane Sessions Court Rejects DFCCIL Plea, Upholds Acquisition Of Farmer’s Residual Land For Freight Corridor

Thane, August 22, 2026: In a relief to a Palghar-based farmer who was affected by the Western Dedicated Freight Corridor project, the Thane Sessions Court has dismissed a plea filed by the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL), which had challenged an arbitral award directing the Freight Corridor Corporation to acquire the farmer’s residual land and pay compensation.

The court, in its 16-page order, has dismissed the DFCCIL’s application 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 its interference.

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Court Upholds Arbitrator’s Findings

The court, presided over by District and Additional Sessions Judge P.V. Ghule, in its order has held that the arbitrator appointed, while passing its decision in fixing the market value of the land, has referred to the orders passed by the Supreme Court in the case of Digamber & Ors. V/s State of Maharashtra & Ors. in SC Civil Appeal No. 5346 of 2013.

“The Supreme Court in the judgment has held that it is a settled law that while fixing market value of the acquired land, the Land Acquisition Collector is required to keep in mind the following factors: (i) Existing geographical situation of land (ii) Existing use of the land (iii) Already available advantage like proximity to National or State Highway or road and/or developed area (iv) Market value of other land situated in the same locality/village/area or adjacent or very near the acquired land. I find that Award of Ld. Arbitrator is reasoned, with application of mind and legal principles. There is no error or patent illegality for setting it aside,” the order copy reads.

The dispute pertains to land belonging to Pradip Jawaharlal Karnavat at Saravali village in Dahanu taluka, Palghar district, acquired for the Western Dedicated Freight Corridor. DFCCIL is constructing the 1,483-km corridor from JNPT in Maharashtra to Dadri in Haryana.

The competent authority had passed the original acquisition award in April 2018. Karnavat subsequently approached the arbitrator through two petitions — one seeking enhancement of compensation and another seeking acquisition of the residual portion of his land along with compensation.

Compensation For Residual 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 that the arbitrator had exceeded his jurisdiction by directing acquisition of the residual land. It also contended that such relief had not been sought by the landowner and alleged that the award suffered from patent illegality.

The court, however, found that DFCCIL had relied on crossed-up petition numbers, which had created unnecessary confusion. After examining the record and proceedings, the court noted that Karnavat had specifically sought acquisition of the balance 0.0910 hectare in Petition No. 197/2019, while the other Petition No. 202/2019 dealt with enhancement of compensation.

“The Applicant has created confusion unnecessarily due to inserting by hand number of one petition on another,” the court observed, rejecting DFCCIL’s contention that the arbitrator had granted a relief which was never sought. The court further found that the arbitral award had been passed after considering the facts and legal precedents on merits.

Residual Land Deemed Unviable

Significantly, the court noted that Karnavat had repeatedly sought surrender of the balance land, claiming that the residual portion was no longer useful to him. The Land Valuation Committee had also approved acquisition of the residual land, but it had not subsequently been acquired.

The court further noted that the residual land was situated within 30 metres of the railway boundary and had become unviable. Following the original acquisition, the remaining land had been split into three portions, rendering it useless to the landowner.

The arbitral award had relied upon the Entitlement Matrix approved by the Railway Board as well as provisions governing compensation for such residual land.

Referring to the Indian Railway Works Manual, the court observed that an open space of approximately 30 metres from the railway boundary is required to be maintained, further supporting the conclusion that Karnavat’s residual land was unviable and required to be acquired.

“Ld. Arbitrator has observed that Claimant’s residual land is within 30 meters of the Railway boundary and it is unviable and no construction can be done on residual land and DFCCIL should compensate as Railway Amendment Act 2008. So also as per Indian Railway Works Manual- Acquisition Management & Disposal of Land, it clearly described the open space approximately 30 Mtrs. from the railway boundary is required to kept. Hence the residual land of the Claimant is unviable and needs to be acquiring by the Respondents.”

The court also recorded that the landowner was not seeking any enhancement in the compensation rate for the residual land and had accepted the rate fixed by the competent authority. The valuation committee had fixed the rate at Rs 39.63 lakh per hectare, which was subsequently adopted by the arbitrator.

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Upholding the arbitral award, Judge Ghule concluded that it was a reasoned decision based on applicable legal principles and showed due application of mind.

“I find that Award of Ld. Arbitrator is reasoned, with application of mind and legal principles. There is no error or patent illegality for setting it aside,” the court said, while dismissing DFCCIL’s application.

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