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2026 Supreme(Gau) 377

THE GAUHATI HIGH COURT, (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
Hakim Ali, S/o. Late Kashem Ali – Petitioner 
Versus
The Union Of India, Represented By The Secy. To The Govt. Of India, Ministry Of Road Transport And National Highways – Respondents
WP(C) No.4529 of 2025
Decided On : 06-03-2026

Advocates Appeared:
For the Petitioner:Mr. M. Ahmed, Advocate
For the Respondents: Mrs. R. Borah, CGC Mr. N. Goswami, Govt. Adv., Ms. N. Bordoloi, Standing Counsel Mr. B. Choudhury, Standing Counsel, Mr. A.Z. Ahmed, Adv., Mr. K.H. Saikia, Adv.

The competent authority must refer disputes regarding compensation apportionment to the Principal Civil Judge as mandated by the National Highways Act, 1956.

Headnote:(A) National Highways Act, 1956 - Section 3H(1), 3H(3), and 3H(4) - Land acquisition compensation - Dispute regarding entitlement to compensation necessitated a reference to the Principal Civil Judge as established by the statutory provisions and supported by Supreme Court precedent in Vinod Kumar & Others. (Paras 4, 6)

(B) Dispute Resolution - The competent authority failed to refer the entitlement dispute to the appropriate civil court as required by the Act. (Paras 5, 8)

Facts of the case:
The case involves compensation disputes arising from the acquisition of 2 Kathas of land for a highway development project, where the competent authority withheld disbursement of compensation pending resolution of ownership claims.

Findings of Court:
The court directed that the authority is mandated to make a reference to the Principal Civil Judge for adjudicating compensation apportionment.

Issues: The critical issue was whether the competent authority acted correctly by withholding the compensation and failing to refer the dispute to the court.

Ratio Decidendi: The court emphasized the obligation of the competent authority under the Act to refer disputes regarding compensation apportionment to the appropriate civil court, thus ensuring lawful resolution of entitlement issues.

Result: Writ petition allowed, and directive to make a reference to the District Judge issued.

Table of Content
1. facts of land acquisition and compensation disputes. (Para 2 , 3)
2. legal procedure for referencing disputes under the act. (Para 4 , 5)
3. court's opinion on referral for entitlement resolution. (Para 6 , 7)
4. final orders regarding the impugned decision. (Para 8)

JUDGMENT :

DEVASHIS BARUAH, J.

Heard Mr. M. Ahmed, the learned counsel appearing on behalf of the petitioner. Mrs. R. Borah, the learned CGC appears on behalf of the respondent Nos. 1 and 3; Mr. N. Goswami, the learned Government Advocate appears on behalf of the respondent Nos. 5 to 7; Mr. B. Choudhury, the learned Standing Counsel appears on behalf of the respondent No. 2; Ms. N. Bordoloi, the learned Standing Counsel appears on behalf of the respondent No. 4; Mr. A.Z. Ahmed, the learned counsel appears on behalf of the respondent No. 8 and Mr. K.H. Saikia, the learned counsel appears on behalf of the respondent No. 9.

2. The present writ petition has been filed by the petitioner being aggrieved by the order dated 25.10.2024 passed by the respondent No. 6 whereby instead of referring the dispute to the learned Court of the Principal Civil Judge, the respondent No. 6 vide the impugned order withheld the disbursement of the land value of the acquired land and further directed that the zirat value be paid to the respondent No. 8.

3. This Court has duly taken into consideration that from the materials on record it transpires that the plot of land admeasuring 2 Kathas covered by Dag No. 155 of Patta No. 56 of Village Fulkumari under Mouza Gauripur in the district of Dhubri was acquired in connection with L.A. Case No. 1/2020–21 in favour of the NHIDCL. It is seen that pursuant to such acquisition, the NHIDCL has already deposited the compensation amount as required under Section 3H(1) of the National Highways Act, 1956 (for short, “the Act of 1956”). Disputes have arisen between the petitioner and the respondent Nos. 8 and 9 regarding the entitlement to the compensation and/or the apportionment of the compensation.

4. Taking into account that such disputes cannot be decided by the respondent No. 6 in terms with Section 3H(3) of the Act of 1956, the same ought to have been referred in terms with Section 3H(4) of the Act of 1956 to the learned Court of the Principal Civil Judge within whose jurisdiction the land has been acquired. In this regard reference can be made to the judgment of the Supreme Court in the case ofVinod Kumar & Others Vs. District Magistrate, Mau & Others reported in(2023) 19 SCC 126 wherein the Supreme Court observed at paragraph No. 25 as follows:

25. The scheme of the 1956 Act and the statutory provisions referred to above makes it very clear that once any land is acquired under the 1956 Act, the competent authority is obliged to pay an amount by way of compensation. There is a procedure which has been prescribed under Section 3 -G of the 1956 Act. Sub-section (5) of -G makes it abundantly clear that if the amount determined by the competent authority under sub-section (1) or sub-section (2) of -G is not acceptable to either of the parties, the amount will have to be determined by the arbitrator who may be appointed by the Central Government on the strength of an application by either of the parties. -H provides that the amount determined towards compensation under -G will have to be deposited by the Central Government in accordance with the rules. It is only after such amount is deposited by the competent authority that the possession of the land can be taken. Sub-section (4) of -H talks about apportionment of the amount. The language of sub-section (4) of -H is plain and simple. It provides that if any disputes arises as to the apportionment of the amount or any part thereof, the competent authority is obliged to refer the dispute to the decision of the Principal Civil Court of Original Jurisdiction within the limits of whose jurisdiction the land is situated.”

5. It is seen that vide the impugned order dated 25.10.2024, t

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