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2021 Supreme(Pat) 6

IN THE HIGH COURT OF JUDICATURE AT PATNA
Ahsanuddin Amanullah, J.
National Highway Authority Of India - Appellant
Versus
State of Bihar - Respondent
Civil Writ Jurisdiction No. 8915 of 2020
Decided On : 28-01-2021

Advocates Appeared:
S.D. Sanjay, Advocate, Anshay Bahadur Mathur, Advocate, Parul Prasad, Advocate, Raj Kishore Roy, Advocate, Prerna Anand, Advocate

Compensation for land acquisition should be based on actual land usage and not notional fixation by authorities.

Headnote:

National Highway Act - Land Acquisition - 3A, 3D, 3G, RFCTLARR Act - [NH Act 1956, Land Acquisition Act 1894, RFCTLARR Act 2013] - The court addressed the determination of fair compensation for land acquired for constructing National Highways in Bihar. It emphasized that compensation should be based on actual land usage and not notional fixation by authorities. The court set aside the recommendation and order of the Competent Authority, remitting the matter for fresh recommendation and order in accordance with the law, after spot verification of the lands.

Fact of the Case:

The petitioner sought to quash an order related to the determination of fair compensation for land acquired for constructing National Highways in Bihar. The petitioner argued that compensation should be based on actual land usage and not notional fixation by authorities.

Finding of the Court:

The court found that the initial award had attained finality, and subsequent adjudication must relate to the point of time when the lands were acquired. It emphasized the importance of spot verification for ascertaining actual land usage and set aside the recommendation and order of the Competent Authority, remitting the matter for fresh recommendation and order in accordance with the law.

Issues: The issues revolved around the determination of fair compensation for land acquired for constructing National Highways in Bihar, specifically focusing on the basis for determining compensation and the validity of the recommendation and order of the Competent Authority.

Ratio Decidendi: The court's decision was based on the principle that compensation should be based on actual land usage and not notional fixation by authorities. It emphasized the importance of spot verification for ascertaining actual land usage and set aside the recommendation and order of the Competent Authority, remitting the matter for fresh recommendation and order in accordance with the law.

Final Decision: The court set aside the recommendation and order of the Competent Authority, remitting the matter for fresh recommendation and order in accordance with the law, after spot verification of the lands.

JUDGMENT

Ahsanuddin Amanullah, J. - The matter has been heard via video conferencing,

2. Heard Mr. S D Sanjay, learned senior counsel along with Mr. Anshay Bahadur Mathur and Ms. Parul Prasad, learned counsel for the petitioner (National Highway Authority of India) and Mr. Raj Kishore Roy, learned GP 18 along with Ms. Prerna Anand, learned AC to GP 18 for the State.

3. The petitioner has moved the Court for the following reliefs:

    "i] For issuance of appropriate writ and/or direction for quashing the order dt. 31.08.2016 passed by the Respondent Competent Authority-cum-District Land Acquisition Officer, Kaimur, Bhabhua, in case No.14 of 2016-17.

      ii] For a declaration that the nature and classification of land for the purpose of computation of its rate could not have been legally made on presumption and on the letter of the Official of the Government of Bihar but on the basis of the actual use as per the provisions of the statue.

        iii] For a declaration that the letter no. 599 dt. 04.12.2015 issued by CALA by which it has informed about the amendment to be made in the original award on the basis of classification of land on presumption of it to be residential, is wholly illegal is liable to be quashed.

          iv] For issuance of appropriate writ and/or direction upon the Respondents to pass fresh order on the basis of the nature and classification of land as it was existing on the date of notification U/s 3A of the National Highway Act or on the date of original award dated 20.04.2012 for the purpose of determination of rate of compensation and not thereafter, and/or for any other relief[s] for which the Petitioner may be found entitled to in the facts and circumstances of the case."

          4. On 05.12.2020, the Court had recorded the thrust of the argument of the petitioner and the same is reproduced hereinunder.

            "5. Mr. S D Sanjay, learned senior counsel submitted, in essence, that the petitioner is aggrieved with the mode of determination of fair compensation by the Competent Authorities for the land which is acquired for the purposes of constructing National Highways in the State of Bihar. It was submitted that under the National Highway Act, 1956, (hereinafter referred to as the "NH Act"); the Land Acquisition Act, 1894; and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, (hereinafter referred to as the "RFCTLARR Act") the quantum of actual compensation of the land acquired has to be on the basis of actual land usage and not any notional fixation by the authorities. It was submitted that though as a test case, the present matter has been brought before the Court, in which the initial Notification under Section 3A of the NH Act was published, as per the requirement of law, on 12.04.2010 and the publication in the newspapers was on 27.05.2010 and thereafter subsequent notification under Section 3D of the NH Act was also made on 08.04.2011, published in the newspapers on 04.05.2011, and then on 20.04.2012, Award under Section 3G of the NH Act was also made by the Competent Authority, CALA, and the same was determined mentioning the nature of the land as per the Notification dated 12.04.2010. It was submitted that the petitioner discharging its obligation also deposited Rs. 128 crores with CALA for disbursment amongst the land owners.

              6. Learned counsel submitted that some land owners being aggrieved by the quantum of compensation had moved before the Arbitrator under Section 3G(5) of the NH Act and the Arbitrator passed order dated 27.08.2015 holding that the lands in question shall be treated as residential and commercial instead of agricultural, relying on the Report dated 16.04.2015 of the statutory Six Member Committee to which the matter was again referred by the Arbitrator, which has simply gone by Letter No. 206 dated 23.08.2014 of the Registration Office, Kaimur, by which all lands situated 100 metres on either side of the National Highways have been treated as residential and c

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