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2018 Supreme(P&H) 3430

IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH
Rajesh Bindal, Amit Rawal, JJ.
Balbir Singh (deceased) Through Lr - Appellant
Versus
Union Of India And Others - Respondent
Civil Writ Petition No. 8035 of 2016
Decided On : 24-07-2018

Advocates Appeared:
Rakhi Sharma, Adv., R.S. Madan, Adv., Pankaj Gupta, Adv.

The main legal point established is that the competent authority is liable to pay interest on delayed compensation under Section 3-H of the National Highways Act, 1956.

Headnote:

National Highways Act - Compensation - Section 3-H of 1956 Act - Summary: The petitioner sought writ for quashing an order declining interest on compensation awarded under the National Highways Act, 1956. The court held that the competent authority was liable to pay interest at 9% per annum on delayed payment of compensation, citing relevant provisions of the Act and previous judgments.

Fact of the Case:

The petitioner's land was acquired for widening of National Highway 21 and 22. Despite possession being handed over in 2007, full compensation was not paid until 2014, and interest on the delayed payment was declined by the competent authority.

Finding of the Court:

The court found that the competent authority was liable to pay interest at 9% per annum on the delayed compensation, as per Section 3-H of the National Highways Act, 1956.

Issues: Delayed payment of compensation, denial of interest, applicability of relevant legal provisions.

Ratio Decidendi: The court held that the competent authority is responsible for paying interest on delayed compensation as per Section 3-H of the National Highways Act, 1956.

Final Decision: The court ordered the competent authority to pay interest at 9% per annum on the delayed compensation.

JUDGMENT

Amit Rawal, J. - Petitioner has invoked the jurisdiction of this Court for issuance of writ in the nature of certiorari, for quashing the order dated 21.07.2015 (Annexure P-12) passed by respondent No.4 - Sub-Divisional Magistrate, Derabassi (Competent Authority under National Highways Act, 1956), whereby the interest upto date on the amount of compensation awarded to the petitioner has been declined.

2. In pursuance to the notification issued under the provisions of National Highways Act, 1956 (for short, 1956 Act'), land of the petitioner was acquired for widening of the National Highway 21 and 22, Ambala Chandigarh. The petitioner is stated to have handed over the possession to the National Highway Authority of India (for short 'NHAI') of land measuring 1 bigha 16 biswas but had been paid compensation only for 1 bigha 12 biswas and 2 biswasi.

3. It has been averred that the Arbitrator, vide award dated 22.02.2011 fixed the compensation at the rate of Rs. 2,45,00,000/- per acre. The possession had been taken in May 2007 but no compensation as stated above had been paid. In this regard, petitioner approached this Court, vide CWP No.7245 of 2015 for issuance of appropriate direction or order to the authorities for taking decision on the representation dated 14.03.2015 (Annexure P-9). This Court, vide order dated 21.04.2015 (Annexur P-10) directed the respondents to take the decision thereon. The competent authority erroneously passed the order dated 21.07.2015 (Annexure P-12) by declining the interest for delayed amount of compensation.

4. During the pendency of the proceedings before the competent authority, respondent no.1-NHAI in reply dated 29.06.2015 (Annexure P11) stated that entire amount of compensation had been deposited with the competent authority in May 2007 and it was duty of competent authority to disburse the compensation.

5. The competent authority, vide impugned order dated 21.07.2015 (Annexure P-12) declined the interest on the delayed payment of compensation.

6. In pursuance to the notice of motion order, respondents No.2 and 4 have filed separate replies. In reply of respondent No.2, it has been stated that as per the provisions of Section 3-H of 1956 Act, the entire amount of compensation was deposited with the competent authority vide cheque no.298943 dated 30.05.2007 in the joint account of NHAI and Land Acquisition Punjab, thus, it is the competent authority, who is responsible to assess and pay the amount deposited by the NHAI to claimants.

7. Respondent no.4 in para 7 of the reply did not dispute the deposit of compensation on behalf of respondent No.2-NHAI, vide aforementioned cheque but averred that the amount could not be released to the petitioner on account of the petitioner's failure to submit 'No Objection Certificate' (NOC) to be issued by the Municipal Council Zirakpur in view of the letter dated 18.12.2009 of Executive Officer, Municipal Council, Zirakpur. The NOC bearing No.1884 dated 27.08.2014 was issued by the Municipal Council Zirakpur and accordingly, as per the award, a sum of Rs. 50,15,625/ - including the TDS amounting to Rs. 5,01,563/- was paid to the petitioner, vide cheque no.350412 dated 13.11.2014.

8. Learned counsel appearing on behalf of the petitioner did not dispute the receipt of payment of aforementioned amount but stated that the petitioner has been denied interest on the delayed payment. In support of the aforementioned claim, placed reliance upon the directions issued by this Court in the order dated 25.01.2018 passed in CWP No.13170 of 2016 titled as "Ramesh Kumar and others Vs. Union of India and others" and various other writ petitions, wherein, in such circumstance, liability of respondent no.3-Competent Authority-cum-Land Acquisition Collector-Sub Divisional Magistrate to pay the interest on account of delay @ 9% per annum has been fixed. It was further submitted that petitioner may be given liberty to approach the competent authority for claiming the reli

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