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2023 Supreme(P&H) 3302

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
LISA GILL, RITU TAGORE, JJ.
M/s. Balaji Industries – Petitioner
Versus
Union of India & Ors. – Respondents
CWP NO. 170 of 2023
Decided On : 18-05-2023

Advocates Appeared:
Ms. Kushaldeep Kaur, Advocate; For the Appellant
Ms. Puneet Kaur Sekhon, Advocate for Respondent No.2-NHAI
Mr. Saurabh Mago, DAG, Haryana for Respondent No.3

Headnote:(A) National Highways Act, 1956 - Section 3D(1) - RFCTLARR Act, 2013 - Land Acquisition - The petitioner challenged the award for insufficient compensation solely for land, claiming neglect of machinery and independent electricity connection. The court pointed out omissions and upheld the decision to value all assets before dispossession. (Paras 1-21)

(B) Judicial Approach - The court emphasized on the obligations of the authorities to properly assess compensation for acquired properties and acknowledged that material facts must be disclosed in proceedings for just adjudication. (Paras 13, 16, 18)

Facts of the case:
The petitioner owned industrial land designated for acquisition for a highway, installed machinery worth ₹1,48,62,000 and an electricity connection valued at ₹74,68,959, previously objecting for fair compensation but receiving inadequate award.

Findings of Court:
The petitioner’s claims necessitate proper valuation of assets, directing authorities for compliance within a specified timeframe.

Issues: The key issue was whether proper valuation of plant, machinery, and electricity connection was conducted despite objections raised by the petitioner.

Ratio Decidendi: The court determined that all claims for compensation should be assessed, highlighting procedural lapses by authorities and the need for transparency in compensation calculations.

Result: Writ petition disposed of; the petitioner was directed to pursue remedies as per law.

Table of Content
1. acquisition process under national highways act (Para 1 , 2 , 3)
2. compensation determination and arbitrator's role (Para 4 , 5 , 6)
3. importance of proper valuation before acquisition (Para 8 , 9)
4. duties of the competent authority and regulatory compliance (Para 12 , 13 , 14)
5. potential for alternate dispute resolution methods (Para 18 , 19)
6. (Para 20 , 21)

JUDGMENT

Mrs. Lisa Gill, J.

Prayer in this writ petition is for setting aside 'award' dated 03.03.2021 (Annexure P-11), whereby land belonging to the petitioner has been acquired under section 3D(1) of the NATIONAL HIGHWAYS ACT , 1956 (hereinafter referred to as the 1956 Act) for construction (widening/four laning etc.), maintenance, management and operation of the road from Delhi - Amritsar - Katra expressway at village Hasangarh, District Rohtak. There is a further prayer for directing the respondents to carry out valuation of plant and machinery besides independent electricity connection installed at the factory of petitioner, before taking possession of the acquired land.

2. Facts as pleaded by the petitioner are that the petitioner is owner of land comprised in Khasra No.183//23, measuring 4840 square yards, situated at village Hasangarh, Tehsil Sampla, District Rohtak. It is stated that petitioner has established its factory for manufacturing of steel ingots and related works in respect of which NOC No.2543 dated 24.08.2009 was issued by District Town Planner. Factory of the petitioner is stated to be running wherein heavy machinery at the cost of Rs. 1,48,62,000/- stands installed. Independent connection of 1015 KW was secured by the petitioner for which line of 1.8 kilometers was laid for electricity connection at the site and cost of independent connection is valued as Rs. 74,68,959/- as per valuation by SDO, Sub Office UHBVN, Hasangarh (Annexure P-8).

3. Land in question was notified for acquisition by Government of India under Section 3(a) of the 1956 Act vide notification dated 01.10.2020 for the Delhi - Amritsar - Katra expressway. Petitioner is stated to have submitted objections on 12.11.2020 under Section 3-C of the 1956 Act while also submitting that in case acquisition of land is absolutely essential, compensation at commercial rates should be paid apart from compensation for independent electricity connection, plant and machinery installed at the factory and the constructed portion thereof. With reference to report of competent authority attached as Annexure P-9, it is stated that objection regarding commercial rates, compensation qua independent electricity connection and payment of compensation with respect to machinery installed at the factory was accepted by DRO-cum-CALA to the extent that compensation was directed to be calculated and paid in terms of Section 26 and Section 28 of RFCTLARR ACT , 2013 and that valuation of assets on the land would be conducted before assessing compensation.

4. Declaration under Section 3D(1) of the 1956 Act was issued on 31.12.2020. No valuation in respect to the plant, machinery and independent electricity connection was carried out, therefore, petitioner is stated to have submitted representation dated 10.02.2021 in this respect. Impugned 'award' dated 03.03.2021 (Annexure P-11) was, however, passed without considering the issues as above with insufficient compensation of only the land being assessed.

5. Aggrieved of determination of such compensation, petitioner submitted reference under Section 3 G(5) of the 1956 Act on 06.04.2021. Arbitrator appointed under provisions of the 1956 Act considered report dated 17.06.2021 of the Tehsildar Sampla, which was called for during proceedings before the Arbitrator, whereby it is mentioned that land in question is reflected as 'commercial' in the Jamabandi since 2010 and it is by mistake that the land has been mentioned as 'vacant' in the Jamabandi for the year 2020 as the industry is still running on the spot. Arbitrator also noted the stand of DRO-

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