IMPORTANT POINTS
The Central Government issued an order dated 28.08.2015, under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the Act 30 of 2013), extending the application of the aforesaid Act, in regard to the determination of compensation in accordance with the First Schedule, rehabilitation and resettlement in accordance with the Second Schedule and infrastructure amenities in accordance with the Third Schedule. By this order, the provisions as above are made applicable for acquisition under the National Highways Act.

JUDGMENT :

The short issue in this case is whether a building tenant is entitled to compensation for the land acquired from his landlord under the National Highways Act, 1956. The claim has been rejected by the competent authority by Ext.P14 order dated 12.07.2019. In the order, the competent authority states that the claim of the tenant cannot be considered to re-determine the compensation. Challenging this, the petitioner approached this Court.

2. Heard the learned Counsel for the petitioner-tenant, the learned Counsel for the 6th respondent-landlord and the learned Government Pleader.

3. The claim was not decided on merit. If it was decided on merit, the remedy of an aggrieved is, to invoke the provisions for arbitration as contemplated under Section 3G(5) of the National Highways Act, 1956.

4. I have to decide this dispute on narrow compass whether the tenant is entitled for compensation amount or not.

5. Section 3G of the National Highways Act, 1956 refers to payment of the compensation to be determined by the competent authority. Section 3G(2) states as follows:

“(2) Where the right of user or any right in the nature of an easement on, any land is acquired under this Act, there shall be paid an amount to the owner and any other person whose right of enjoyment in that land has been affected in any manner whatsoever by reason of such acquisition an amount calculated at ten per cent, of the amount determined under sub-section (1), for that land.”

6. According to the learned Counsel for the landlord and the learned Government Pleader, right to claim compensation is only available to the landlord who is the owner of the land and also to the class referred in 3G(2). This class is referable to the persons who claimed the right of easement or other right of use over the land. Therefore, it was argued that a building tenant cannot claim the compensation under Section 3G of the Act.

7. To understand this dispute, it is appropriate to refer to various provisions under the National Highways Act, 1956. The proceedings for acquiring the land starts with a notification issued under the Section 3A of the Act. The Section 3C of the Act contemplate hearing of objection from any person interested in the land. The Section 3G(7) of the Act refers to the component for determination of the compensation by the competent authority or arbitrator. The Section 3H(3) states that when there are several persons claiming interest for the amount deposited, the competent authority shall determine the persons who are entitled to receive the compensation. It is relevant to note, while determining the compensation that the competent authority or arbitrator as the case may be, will also have to take a note of the loss of earnings of a person interested at the time of taking possession of the land (Section 3G(7)(c)). Nowhere in the National Highways Act it is stated that only the persons who is having title over the land alone can claim the compensation. Reference under Section 3G(2) for a claim made by the user or a person who is having easement right are only a reference of class of claim for compensation. It does not lay down exhaustive class or category of persons who can claim compensation. On the other hand, Section 3G(4) states that notice shall be given to all the persons interested in such land. That means any person who is having interest by way of lease or otherwise would be entitled to claim compensation.

8. The rent agreement confers a possessory interest to the tenant. Therefore, a building tenant is also having an interest in the land. To what extent he is entitled to claim compensation is a matter for determination by the competent authority. The tenant's claim has to be considered within the four corners of Section 3G(7). He would be also entitled to claim for his loss of earnings. He can also raise a claim under Section 3G(7)(d) for shifting his place of business and incidental expenses thereon. The competent authority has to consider his claim indep