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2026 Supreme(Gau) 1557

 
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
 
Faizur Rahman Laskar – Petitioner
Versus
State of Assam And 6 Ors.– Respondents
WP(C) 5746 of 2025
Decided On : 19-08-2026

Advocates appeared:
Advocate for the petitioners:Mr. A. R. Bhuyan, Sr. Advocate Mr. S. Abdullah, Advocate
For the respondents:Mr. G. N. Sahewalla, Sr. Advocate Ms. T. More, Advocate

Under Section 3H(4) of the National Highways Act, 1956, the reference court has jurisdiction to incidentally determine questions of title for apportionment of compensation. The competent authority may order partial payment with indemnity safeguards pending reference.

Headnote:(A) National Highways Act, 1956 - Sections 3D, 3G and 3H - Land acquisition for national highway - Dispute as to apportionment of compensation - Competent authority's order to pay 50% of zirat compensation to persons in possession and deposit remaining 50% before District Judge - Whether such order calls for interference - Held: Order is in accordance with scheme of Act, but requires indemnity bond and immediate reference to principal civil court under Section 3H(4) - Reference Court has jurisdiction to incidentally decide questions of title. (Paras 8-14)

(B) National Highways Act, 1956 - Section 3H(4) - Reference to principal civil court - Scope and ambit - The expression "person to whom amount is payable" cannot be read narrowly; determination of entitlement inevitably requires adjudication of underlying claim of title - Such inquiry is incidental and integral to jurisdiction under Section 3H(4). (Paras 22.5-22.7 of Supreme Court judgment cited)

Facts of the case:
The petitioner claimed right over land acquired for widening of a national highway under the National Highways Act, 1956. Notification under Section 3D dated 21.07.2023 listed respondents 6 and 7 and their predecessors but not the petitioner. The competent authority under Section 3G determined compensation and deposited it. The petitioner approached the Additional District Commissioner (respondent 5) raising dispute over entitlement. The respondent 5 passed an order on 07.01.2025 directing that 50% of zirat compensation be paid to respondents 6 and 7 (who were in possession) to enable shifting, and remaining 50% be deposited before the District Judge. The petitioner challenged this order.

Findings of Court:
The court noted that the names of respondents 6 and 7 appear in the Section 3D notification and the award under Section 3G, and they were in possession. The order of the competent authority was in accordance with the scheme of the Act. However, to protect the petitioner's interest, the court directed that the 50% payment to respondents 6 and 7 be made only upon their furnishing an undertaking and indemnity bond to return the amount if the reference under Section 3H(4) is decided against them. The court further directed the competent authority to forthwith refer the dispute to the District Judge under Section 3H(4). (Paras 12-15)

Issues: Whether the course of action taken by the competent authority in ordering partial payment and deposit of compensation calls for interference? (Para 8)

Ratio Decidendi: The provisions of the National Highways Act, 1956 constitute a self-contained code. Section 3H(4) empowers the principal civil court to decide disputes as to apportionment or entitlement to compensation, and such jurisdiction includes the power to incidentally determine questions of title. The competent authority's order to pay 50% to the persons in possession and deposit the rest pending reference is proper, but safeguards such as indemnity bond are required. (Paras 11-13)

Result: Writ petition disposed of with directions: (i) respondent 5 to refer dispute to District Judge forthwith; (ii) release 50% zirat compensation to respondents 6 & 7 upon undertaking and indemnity bond; (iii) remaining 50% to be deposited before District Judge; (iv) interim order vacated; (v) no costs. (Para 15)

JUDGMENT AND ORDER (ORAL)

DEVASHIS BARUAH, J.

Heard Mr. A. R. Bhuyan, the learned Senior Counsel assisted by Mr. S. Abdullah, the learned counsel appearing on behalf of the Petitioners. Mr. R. Borpujari, the learned counsel appears on behalf of the Respondent No.1; Mrs. R. Borah, the learned counsel appears on behalf of the Respondent Nos.2 & 3; Mr. H. Sarmah, the learned Additional Senior Government Advocate appears on behalf of the Respondent Nos.4 & 5 and Mr. P. K. Roychoudhury, the learned Senior Counsel assisted by Mr. S. A. Ahmed, the learned counsel appears on behalf of the Respondent No.6 & 7.

2. The present writ petition has been filed by the Petitioners assailing the Speaking Order dated 07.01.2025 passed by the Additional District Commissioner, Cachar and further seeking a direction upon the Respondent Nos.4 and 5 to dispose of the representations dated 10.01.2025 and 24.01.2025.

3. The brief facts which led to the filing of the instant writ petition are that for the purpose of building (widening/four-laning etc.) maintenance, management and operation of NH-306 in the stretch of land from Km. 0+000 to Km. 20+000, in the district of Cachar, acquisition proceedings have been initiated under the National Highways Act, 1956 (for short, ‘the Act of 1956). Amongst the various plots of land which have been acquired by issuance of Notification nd under Section 3D of the Act of 1956, Dag No.15 of the 2 RS Patta No.7 had been acquired. During the course of hearing, the Notification under Section 3D of the Act of 1956 which was issued on 21.07.2023, was placed before this Court which is kept on record and marked with the letter “X”.

4. From a perusal of the said Notification under Section 3D of the Act of 1956, the names of the Respondent Nos.6 and 7 and their predecessors are mentioned. However, the names of the Petitioners are not mentioned. It is further apparent from the materials on record that in terms with award statement made under Section 3G of the Act of 1956, the Central Government had already deposited the compensation for onward disbursement to the persons interested. The Petitioners who claim rights over the said land, approached the Respondent No.5 who is the Competent Authority of Land Acquisition thereby raising disputes to the entitlement of the Respondent Nos. 6 and 7 to the compensation and claiming apportionment of the compensation.

5. The Respondent No.5 passed the impugned order dated 07.01.2025 wherein it was mentioned that taking into account that the names of the Respondent Nos.6 & 7 featured in the award under Section 3G of the Act of 1956 and they were dispossessed from the land, 50% of the zirat compensation may be paid to Respondent Nos.6 & 7 so as to enable them to shift from the site and the remaining 50% of the amount of the zirat compensation would be deposited before the learned District and Sessions Judge, Silchar. Being aggrieved, the present writ petition.

6. The learned Coordinate Bench of this Court vide the order dated 26.09.2025 issued notice and directed that no amount should be released without taking the leave of the Court.

7. The Respondent Nos.6 & 7 thereupon have appeared before this Court and filed an Interlocutory Application for vacating the order dated 26.09.2025 which is registered and numbered as IA(C) No.8687/2026. The said Interlocutory Application has come up for disposal before this Court today and taking into account that disposing the Interlocutory Application, this Court be required to enter into merits, this Court with the consent of the parties has taken up the instant writ petition for final disposal.

8. The question arises in the instant proceedings is as to whether the course of action taken by the Respondent No.5 calls for interference?

9. The materials on record show that the names of the Respondent Nos. 6 and 7 along with their predecessor-in-interest feature in the Notification dated 21.07.2023. Apart from that, the Respondent Nos. 6 and 7 are in possession of the lan

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