IN THE HIGH COURT OF PUNJAB AND HARYANA
Anil Kshetarpal, J.
Mahender And Others - Appellant
Vs.
Union Of India And Others - Respondent
CWP No. 14297 of 2021 (O&M)
Decided On : 12-08-2021
National Highways Act - Land Acquisition - 1956 Act, 2013 Act - Sections 3G, 3H, 24(l)(a), 30, 80, 105 - The court discussed the provisions of the National Highways Act, 1956, and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, particularly focusing on the determination of compensation, payment of solatium, and interest on the awards. The court emphasized the applicability of the 2013 Act to acquisitions made under the 1956 Act and highlighted the entitlement of landowners to one hundred percent solatium and interest as per the 2013 Act.
Fact of the Case:
The petitioners claimed that their land was compulsorily acquired by the Central Government under the National Highways Act, 1956, and sought one hundred percent solatium on the market value of the land determined by the competent authority, as provided under the 2013 Act. The respondents disputed the payment of one hundred percent solatium, citing the petitioners' failure to seek redetermination of compensation under the 1956 Act.
Finding of the Court:
The court found that the petitioners were entitled to one hundred percent solatium and interest as per the 2013 Act, emphasizing that the dispute was not about the amount determined by the competent authority but about the payment of statutory benefits for compulsory land acquisition. The court allowed the writ petition and directed the respondents to pay the one hundred percent solatium amount and interest within two months.
Issues: The issues revolved around the entitlement of the petitioners to one hundred percent solatium and interest under the 2013 Act, despite not seeking redetermination of compensation under the 1956 Act.
Ratio Decidendi: The court held that the provisions of the 2013 Act, including the entitlement to one hundred percent solatium and interest, applied to acquisitions made under the 1956 Act, and the petitioners were not required to seek redetermination of compensation for the payment of statutory benefits.
Final Decision: The writ petition was allowed, and the respondents were directed to pay the one hundred percent solatium amount and interest to the petitioners within two months.
JUDGMENT :
Anil Kshetarpal, J. - The petitioners claim that their land described in para 3 of the writ petition has been compulsorily acquired by the Central Government in exercise of powers conferred by the National Highways Act, 1956, (in short 1956 Act') vide an award passed by the competent authority on 23.01.2015. It is claimed that 30% solatium on the market value of the land acquired determined by the competent authority has been paid. They claim that since the award has been passed after the enforcement of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, therefore, the competent authority has erred in directing payment of 30% solatium in place of one hundred percent. They also claim that the Arbitrator while deciding cases filed by other identically situated owners, has already directed payment of one hundred percent solatium vide award dated 20.10.2018.
2. Sh. Abhilaksh Gaind, Advocate, has filed a brief note in response to the writ petition, which is taken on record.
3. It is not in dispute that the acquiring authority is required to pay one hundred percent solatium amount on the market value determined by the competent authority or Land Acquisition Collector as per the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (in short 'RFCTLARR Act') which has been made applicable to the acquisitions made under the National Highways Act, 1956, (in short 'the 1956 Act') with respect to assessment of the market value and payment of statutory benefits including solatium and interest on the awards passed by the competent authority under the later Act on or after 01.01.2015. It is also not disputed that certain identically situated owners, who had sought re-determination of the compensation before the Arbitrator, have been paid one hundred percent solatium amount as per the 2013 Act.
4. Before proceeding further, it would be appropriate to note certain provisions of the 1956 Act. Previously, the acquisition of the land for constructing/laying National Highways was governed by the Land Acquisition Act, 1894 (hereinafter referred as 'the 1894 Act). By Act No. 16 of 1997, the Central Government added provisions for acquisition of land in the 1956 Act. In Section 3G of the 1956 Act, the provision has been made for payment of the amount determined by the competent authority. Under Section 3G(5), either of the parties are entitled to question the correctness of the amount determined by the competent authority by seeking re-determination by the Arbitrator to be appointed by the Central Government. In Section 3H, the procedure for deposit and payment of the amount, so determined, has been laid.
5. In Golden Iron Vs. Union of India, 2011 (4) RCR (Civil) 375, a Division Bench of the Court held that market value of the land determined by the competent authority shall be payable along with interest and solatium amount as provided under the 1894 Act, even with respect to the acquisition of land under the 1956 Act. Recently, the Hon'ble Supreme Court in Union of India Vs. Tarsem Singh and others, (2019) 9 SCC 304 has also held that there is no justification in denying the benefits of solatium amount and interest to the land owners for compulsory acquisition of the land under the 1956 Act. The 1894 Act, has been replaced with the RFCTLARR Act, 2013, which came into force w.e.f. 01.01.2014. Section 24 (l)(a) of the RFCTLARR Act provides that where no award under Section 11 of the 1894 Act, has been made, then, all the provisions of RFCTLARR Act, 2013relating to determination of compensation shall apply. Section 30 provides that the Collector shall pay solatium amount equivalent to one hundred percent of the compensation amount. Previously, under the 1894 Act, the solatium was payable @ 30%. Furthermore, Section 80 of RFCTLARR Act, 2013 provides that if the amount of such compensation is not paid or deposited on o
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