IMPORTANT POINT
Interest on enhanced compensation under the National Highways Act is payable from the date of notification under Section 3-D, affirming the government's immediate vesting of land.

JUDGMENT :

Arun R. Pedneker, J.

1. The question of law involved in the present Writ Petitions is noted below :

Whether the interest payable on the enhanced compensation granted by the Arbitrator under the National Highways Act, 1956 would be from the date of taking physical possession under Section 3-D (i.e. after payment of compensation under Section 3-G) or would be from the date of Notification under Section 3-D of the National Highways Act, 1956 till the date of deposit thereof?

Brief facts leading to filing the present Writ Petitions are summarized as under :

2. The land of the claimants were acquired from Shirpur Taluka, District Dhule for the purpose of widening of National Highway No.3 by the Government of India through the National Highways Authority of India vide Notification under Section 3-A bearing S.O.No. 1894 (A), dated 17.08.2012 under Section 3 -A of the National Highways Act, 1956 [for short ‘the N.H.Act’].

3. In pursuance of the above Notification, the joint measurement survey was carried out. Notification under Section 3-D of the N.H.Act came to be published vide Notification S.O. No.2136 (A) dated 10.07.2013. The award was determined by the Competent Authority for Land Acquisition, Dhule [for short ‘CALA’], dated 03.05.2014 under Section 3-G of the N.H.Act and the petitioners deposited the compensation as per the award passed by the CALA, Dhule. The said compensation was also disbursed by the CALA, Dhule in the month of June, 2014 and the possession of the acquired land were taken over on payment of compensation.

4. Being aggrieved by the award passed by the CALA, Dhule, the respondents filed application under Section 3-G (5) of the said Act for enhancement of the compensation granted by the CALA, Dhule before the Arbitrator and Additional Commissioner at Nashik. The Arbitrator declared an arbitral award dated 23.04.2019 thereby enhancing the market rate from Rs.355/- to Rs.1364/- [per square meter]. The petitioner filed an application under Section 34 of the Arbitration and Conciliation Act, 1996, for setting aside the arbitral award before the District Court, Dhule bearing Civil M.A.No. 287/2019 and the same was rejected by the District Court. Thereafter, the petitioner deposited the enhanced compensation with the Competent Authority for land Acquisition, Dhule.

5. The respondent filed execution proceedings bearing Arbitration R.D.No. 08/2021, seeking deposit of the amount of interest from the date of declaration of the Notification under Section 3-D till the date of actual deposit thereof. By the order dated 18.04.2022, the District Court directed the CALA to calculate the interest on enhanced compensation as per the Arbitration Award from the date of taking possession of land under Section 3-D i.e. from 10.07.2013 i.e. from the date of declaration of the Notification under Section 3-D of the said N.H. Act, till the date of actual deposit thereof.

6. The CALA, Dhule filed an application below Exh.26 (D), dated 28.04.2022, praying for recall of the order dated 18.04.2022 passed by the District Court, Dhule. The CALA, Dhule contended in the said application that enhanced compensation has to be from the date of taking possession under Section 3-D means from the date of taking actual possession at the time of disbursement of the compensation i.e. on or after 19.06.2014 and not from 10.07.2013. The said application was dismissed by order dated 21.10.2022. Thus, the petitioner in the present petition has challenged the order dated 18.04.2022 and 21.10.2022 passed by the District Court in the execution proceedings filed by the respondent-claimants.

7. Perusal of Section 3-D and 3-H (1) and (5) of the N.H.Act indicate that on the enhanced amount by the Arbitrator the interest has to be paid “from the date of taking possession under section 3-D”. It is contended by the learned counsel for the petitioners that the word ‘taking possession’ is important and has to be emphasized. In the instant case at the time of payment of