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2023 Supreme(Kar) 21
IN THE HIGH COURT OF KARNATAKA, (DHARWAD BENCH)
N.S. SANJAY GOWDA, J.
T. Younis @ Unees, S/o. Haji T. Ameer Sab - Petitioner
Versus
Special Land Acquisition Officer & The Competent Authority, National Highway Authority of India, Vidya Nagar, 4th Main Road, 5th Cross, Opp: Gangaparameshwari Kalyan Mantapa, Vidyanagar, Ballari-583104 & Anr. - Respondents
Writ Petition No.104106 Of 2022 (LA-RES)
Decided On : 06-01-2023
For the Petitioner: Shri. Mallikarjunswamy B. Hiremath.
For the Respondents: Sri. Vinayak S. Kulkarni, Smt. Shilppa Shah, Adv. for Sri. Shivaraj Ballolli.
Headnote:Land Acquisition - National Highways Act, 1956 - Section 3A, 3D, 3G, 3H - The court discussed the Competent Authority's jurisdiction to refuse payment of compensation and the NHAI's right to challenge the award. It analyzed the statutory provisions and rules regarding deposit and disbursement of compensation. The court held that the NHAI is obligated to deposit compensation within a specified time frame and cannot withhold payment based on pending applications or challenges. The court quashed the endorsements refusing payment and directed NHAI to facilitate withdrawal of compensation with interest.
Fact of the Case:
The Competent Authority refused to release compensation due to pending applications under the Arbitration and Conciliation Act, leading to a writ petition challenging this refusal.Finding of the Court:
The court held that the Competent Authority cannot refuse payment of compensation and quashed the endorsements. It directed NHAI to facilitate withdrawal of compensation with interest.Issues:
Whether the Competent Authority has jurisdiction to refuse payment? Whether NHAI can seek opinion for disbursal and refuse payment based on it?Ratio Decidendi:
The NHAI is obligated to deposit compensation within a specified time frame and cannot withhold payment based on pending applications or challenges.Final Decision:
Writ Petition allowed; Competent Authority's refusal quashed; NHAI directed to facilitate withdrawal of compensation with interest.ORDER :
1. Two endorsements issued by the Special Land Acquisition Officer (for short, “the Competent Authority”), National Highway Authority dated 20.05.2022 and 20.09.2022 vide Annexures-F and F1 respectively are challenged in this writ petition by the landowner.
2. The Competent Authority, by the above-mentioned endorsements, has informed the petitioner that the payment of the compensation in respect of the acquired lands belonging to the petitioner in Sy.Nos.503/A2 & 503/B2 of Amaravati Village, Hospet Taluk cannot be made because the National Highway Authority of India (for short, "NHAI") had received a legal opinion that it should not release the payment due to the pendency of the applications filed under Section 33 of the Arbitration and Conciliation Act, 1996 (for short, "the A & C Act") and the payment would be released by NHAI only after the award attains finality.
3. The admitted facts of the case are that a notification under Section 3A of the National Highways Act, 1956 (for short “the Act”), declaring the intention of the Government to acquire the lands was published on 15.12.2009. This was followed by a declaration under Section 3D of the Act, which was published on 14.12.2010.
4. The Competent Authority determined that a sum of Rs.12,916/-per sq. mtrs. was the compensation payable to the landowner. This order determining the compensation was passed under Section 3G (1) of the Act on 05.12.2011.
5. This amount determined by the Competent Authority was not acceptable to the NHAI and hence it invoked its right to seek for determination of the amount payable as compensation by the Arbitrator i.e., by the Deputy Commissioner, by making an application under Section 3G (5) of the Act.
6. In these proceedings, the landowner also challenged the amount determined by the Competent Authority as being inadequate and sought for redetermination of the amount
7. The Arbitrator, on 16.02.2013, modified the award of the Competent Authority and proceeded to award a sum of Rs.14,64,545/-per acre in respect of dry lands and a sum of Rs.30,00,000/-per acre for the converted lands.
8. Being aggrieved by the said modification of the award by the Arbitrator, the petitioner-landowner filed two applications seeking for setting aside the award under Section 34 of the A & C Act read with Section 3G (6) of the Act. One application was filed challenging the reduction of the market value and another application was filed challenging the dismissal of their counter-claim made for enhancement before the Arbitrator.
9. The District Court, by its order dated 10.04.2014, and in the exercise of its power under Section 34(4) of the A & C Act directed the Arbitrator to hold an enquiry and give findings on the points mentioned in the order, while keeping the application filed under Section 34 of A & C Act pending.
10. Pursuant to the said order of the District Court, the Arbitrator proceeded to conduct an enquiry and passed an order dated 14.10.2015.
11. The District Court thereafter proceeded to consider the application filed under Section 34 of A & C Act and by an order dated 16.03.2019, set aside the order passed by the Arbitrator, by which he had reduced the compensation payable and thereby confirmed the order of the Competent Authority which had determined compensation payable at Rs.12,916/-per sq. mtr.
12. Being aggrieved, NHAI preferred appeals to this Court. In these appeals, the landowner also filed Cross Objections. This Court, by an order dated 01.10.2020, allowed the appeals of the NHAI and remanded the matter to the Arbitrator for determination of the amount payable as compensation. The Cross Objections of the landowners were dismissed as withdrawn.
13. Pursuant to the said order of remand, the Arbitrator, by his order dated 03.02.2022, dismissed the application filed by the NHAI and thereby confirmed the award of the Competent Authority. The Arbitrator also directed the Competent Authority to extend the statutory benefits of solatium, addi
