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2025 Supreme(Bom) 809

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.S.SONAK, JITENDRA JAIN, JJ.
Mrs Suvarna Vasant Bhise - Appellant
Versus 
National Highways Authority of India - Respondents 
Writ Petition No. 5788 of 2022
Decided on : 16-04-2025

Advocates Appeared:
Mr VS Talkute, with Mr Graham Francis, for the Petitioner.
Mr Prashant Chavan, Senior Advocate, with Mr Anil Kumar Patil, Mr Sagar Sagar, Mr Amol Wagh, Mr Rishabh
Tiwari, Ms Chaitali Bhogle, Mr Zeel Jain & Mr Digvijay Patil, i/b, Sagar Kasar, for the Applicant in IAST /13111 of 2025.
Mr Prashant Chavan, Senior Advocate, with Mr Anil Kumar Patil, Mr Sagar Sagar, Mr Amol Wagh, Mr Rishabh Tiwari, Ms Chaitali Bhogle, Mr Zeel Jain & Mr Digvijay Patil, i/b, Sagar Kasar, for the Respondent No. 7 in WP/5788/2022.
Ms Heena Shaikh, i/b, MV Kini & Co, for the Respondent No. 1.
Mr RS Pawar, AGP, for the Respondent-State.
Mr RV. Bansode, for the Respondent Nos. 5 and 6.

The competent authority lacks jurisdiction to decide compensation apportionment disputes under the National Highways Act, which must be referred to the Principal Civil Court.

Headnote:

(A) National Highways Act, 1956 - Section 3H - Compensation apportionment dispute - The competent authority's order disbursing compensation to certain parties without resolving disputes is ultra vires and illegal - The authority must refer disputes to the Principal Civil Court for determination. (Paras 13, 14, 18, 21)

(B) Jurisdiction of competent authority - The competent authority lacks jurisdiction to decide apportionment disputes and must adhere to statutory provisions. (Paras 19, 20)

(C) Disciplinary proceedings - The court directed the Revenue Secretary to investigate the actions of the competent authority regarding the disbursement of compensation. (Paras 27, 30)

Facts of the case:
The Petitioners challenged the competent authority's order dated 25 April 2022, which disbursed compensation of Rs. 1,00,21,122/- to Respondents 5 and 6 amidst ongoing disputes regarding property ownership and compensation claims.

Findings of Court:
The court found the competent authority's actions to be illegal and directed the referral of the apportionment dispute to the Principal Court.

Issues: The main issues included the authority's jurisdiction to decide on compensation apportionment and the legality of the disbursement made.

Ratio Decidendi: The court ruled that the competent authority overstepped its jurisdiction by deciding apportionment disputes and disbursing compensation without proper legal authority.

Result: The impugned order is set aside, and the competent authority is directed to refer the dispute to the Principal Court.

JUDGMENT :

MS Sonak J.

1. Heard learned Counsel for the parties.

2. Rule. The Rule is made returnable immediately at the request of and with the consent of the learned Counsel for the parties.

3. In any event, by our order dated 21 March 2025, we had posted this matter on 16 April 2025 at 2.30 pm for final disposal. Even directions were issued to complete the pleadings by 9 April 2025.

4. The State Government and Mr Satish Dhumal, the Competent Authority, have filed their affidavits in this matter. Respondents 5 and 6 have not filed any affidavits despite the opportunity.

5. In addition to the affidavit, a compilation of documents was also tendered across the bar on behalf of Mr Satish Dhumal, and the same was taken on record.

6. The Petitioners challenge the competent authority’s order dated 25 April 2022 apportioning and disbursing the compensation amount for the subject property in favour of Respondents 5 and 6.

7. This Petition was instituted on 4 May 2022, and an interim order was obtained on 6 May 2022. However, Mr Satish Dhumal, the then competent authority, who was impleaded in this Petition in person, has filed an affidavit to say that the compensation amount of Rs. 1,00,21,122/- was disbursed to Respondents 5 and 6 on 4 May 2022 itself. The affidavit states that the intimation from the Petitioners’ Advocate about the institution of this Petition was received by email only at 9.33 pm on 4 May 2022. The affidavit proceeds to state that on 6 May 2022, Mr Satish Dhumal wrote to the bank for freezing the bank accounts of Respondents 5 and 6. However, the bank stated that the Respondents 5 and 6 withdrew the amount on 5 May 2022.

8. The subject property in this case is Gat No. 1178, admeasuring 1286 Sq. Mtrs. At village Barad, Taluka Phaltan, District Satara. The Petitioners claim to have constructed a house bearing Gram Panchayat Property No. 1440 admeasuring 154.78 Sq. Mtrs on the subject property. The Petitioners claim that their father purchased this property on 30 October 1986 and their names were also recorded in the revenue records. There was some dispute with Respondents 5 and 6 and therefore, the Petitioners filed proceedings before the revenue authorities and ultimately filed Regular Civil Suit No. 59 of 2022 before the learned Civil Judge Junior Division at Phaltan for a declaration of ownership and permanent injunction. Some proceedings were also filed for succession (heirship). There is a reference to obtaining some interim reliefs and the vacation of such interim reliefs.

9. The subject property became the subject matter of acquisition under the National Highways Act, 1956 (NHA). Accordingly, the Petitioners and Respondents 5 and 6 raised their claim before the competent authority regarding the compensation payable. By impugned order dated 25 April 2022, Mr Satish Dhumal, the then competent authority, took it upon himself to decide not only the issue of entitlement but also the issue of apportionment and held that compensation of over Rs 1 Crore must be paid to Respondents 5 and 6.

10. Mr Satish Dhumal, on 4 May 2022 disbursed this amount of over Rs 1 Crores to Respondents 5 and 6. In the affidavit, it is claimed by Mr Satish Dhumal that he came to know about the institution of Writ Petition by the Petitioners only on 5 May 2022, by which time the amount had already been disbursed. After interim relief was granted by this Court, Mr Satish Dhumal, claims to have written to the bank to freeze the amount. Mr Satish Dhumal has stated that before the amount was disbursed, an undertaking was obtained from Respondents 5 and 6 to bring back this amount should any claims arise in respect of this amount.

11. In the affidavit filed by Mr Satish Dhumal an apology is tendered. Mr Chavan, the learned Senior Advocate for Mr Dhumal, quite reasonably admitted that Mr Satish Dhumal may have erred in law in deciding the apportionment dispute or disbursing the amount to Respondents 5 and 6. Still, Mr Chavan maintained that Mr Dhumal’s actio

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