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2023 Supreme(P&H) 3346

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
M.S. RAMACHANDRA RAO, SUKHVINDER KAUR, JJ.
National Highway Authority of India – Appellant
Versus
Resham Singh & Ors. – Respondents
LPA-4965 of 2018
Decided On : 12-04-2023

Advocates Appeared:
Mr. Chetan Mittal, Sr. Advocate With Mr. Mayank Aggarwal, Mr. Nitin Goyal, Mr. R.S. Madan, Mr. Rishi Kaushal and Mr. Mahender Joshi, Advocate, for the Appellant-NHAI In LPA Nos. 4965, 4968, 4976 of 2018 and 52, 1536, 1537, 1539 and 1550 of 2019.
Mr. D.K. Singal, Advocate, for the Appellant-NHAI In LPA Nos.475, 224, 280 and 428 of 2019.
Mr. Shailendra Jain, Senior Advocate with Mr. Raj Karan Singh Verka, Advocate; For the Petitioner(s) In CWP No.28334 of 2018, CWP-14487 of 2019 and CWP-25229 of 2019.
Mr. Satbir Rathore, Advocate; For the Petitioner(s) In CWP Nos.18775 and 18799 of 2019 and for Respondent No. 1 In LPA No.4965 of 2018, Respondent Nos. 1 to 4 in LPA-428 of 2019, Respondent Nos. 1 and 2 In LPA-475 of 2019, Respondent Nos. 1 to 5 in LPA-224 of 2019, Respondent No.1 in LPA-4976 of 2018, Respondent No. 1 In LPA-52 of 2019 and Respondent No. 1 in LPA-280 of 2019, Respondent Nos. 1 and 2 in LPA-324 of 2019, Respondent No. 1 in LPA-4968 of 2018 and; For the AppellantIn LPA-118 of 2020.
Mr. Bhupender Singh, Advocate, for Mr. Rishi Kaushal, Advocate, for Respondent Nos. 1 and 2 in CWP No.28334 of 2018, CWP-14487 of 2019 and CWP-25229 of 2019.
Mr. Sudhanshu Makkar, Advocate, for Respondent No. 1 in LPA Nos.1536, 1537, 1539 and 1550 of 2019.
For the Respondent: Mr. Arjun Sheoran, DAG, Punjab, Mr. Hitesh Pandit, Addl. A.G., Hary

Headnote:(A) National Highways Act, 1956 - Sections 3G, 3J; Land Acquisition Act, 1894 - Sections 23(1-A), 23(2), 28 - Compensation for acquired land - The court found that landowners are entitled to solatium and interest for land acquired under the National Highways Act. Previous judgments aided these conclusions, particularly the Supreme Court's ruling in Tarsem Singh regarding eligibility for solatium and interest, confirming decision from M/s Golden Iron and Steel Forgings case. The NHAI was held accountable to award just compensation that encompassed adequate interest and solatium, emphasizing fair treatment under Article 14. (Paras 12, 36, 100)

(B) Jurisdiction - The court ruled that delay does not absolve the NHAI from compensating victims of land acquisition under the National Highways Act when arbitrary decisions are made by the competent authority. The NHAI's failure to follow binding precedents made their defense against claims untenable.

(C) Alternative Remedy - The court stressed that an ineffective alternative remedy does not bar the jurisdiction to file writ petitions when public interest and justice dictate otherwise, particularly when there are violations of constitutional provisions. (Paras 88, 90, 92)

Facts of the case:
The dispute involved landowners whose land was acquired for national highway expansion without granting adequate compensation as dictated by law. Writ petitions challenged the authority's neglect of benefits comparable to the Land Acquisition Act provisions.

Findings of Court:
The court held that the landowners are entitled to solatium and interest as delineated under the Land Acquisition Act, disallowing additional market value claims under section 23(1-A). The decision relied on previous rulings that set forth effective guidelines for compensation.

Issues: The main issues involved the eligibility of landowners for adequate compensation, the appropriateness of direct writ action without arbitration, and the impact of delay in filing claims.

Ratio Decidendi: The court reasoned that existing statutory frameworks must be adhered to for just compensation and underscored the jurisdictional limitations regarding ineffective remedies. The overarching principle was the commitment to ensuring just compensation in compliance with constitutional rights.

Result: Appeals dismissed; landowners granted financial relief as per terms stipulated.

Table of Content
1. acquisition of land under national highway act (Para 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. landowners' entitlement to compensation and solatium (Para 9 , 10 , 11 , 12 , 13 , 14 , 15)
3. court's examination of compensation calculation methods (Para 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36)
4. determination of statutory benefits and interest (Para 37 , 100 , 102)
5. final directions for payments and compensation distribution (Para 106 , 111 , 117)

JUDGMENT

Mr. M.S. Ramachandra Rao, J.

In this batch of LPAs and Writ Petitions, common questions of law arise and so they are being disposed off by this common order.

A brief overview of the facts

2. The respondents in the LPAs (except LPA-558-2019), the appellants in LPA-558-2019 and the petitioners in the Writ Petitions are land owners whose lands had been acquired under the National Highway Act, 1956 by the National Highway Authority of India (for short 'the NHAI') for the purpose of widening/four-laning of certain National Highways.

3. Thereafter, matters were referred to the concerned District Revenue Officer-cum-Land Acquisition Officer (the Revenue Authority of the State) (hereinafter referred to as the 'competent authority') and he passed awards and awarded compensation, but while doing so, he did not grant benefits akin to those under Section 23 , Section 28 and Section 34 of the LAND ACQUISITION ACT , 1894.

4. Writ Petitions were filed in this Court challenging the award of the competent authority by landowners without approaching the arbitrator under section 3G (5) of the NATIONAL HIGHWAYS ACT , 1956.

5. They were partly allowed by a learned Single Judge of this Court which judgments are challenged by the NHAI in the Letters Patent Appeals being LPAs-4965-2018, 428-2019, 475-2019, 224-2019, 4968-2018, 280-2019, 52-2019.

6. In LPA-324-2019, the landowners did approach the Arbitrator and he passed an award under section 3G(5), but the said award was not challenged by them under section 34 of the Arbitration and Conciliation Act, 1996. Instead the land owners filed Writ Petition in this Court which was allowed by the learned Single Judge. The said order is challenged by the NHAI in the said LPA.

7. In LPA-558-2019, the landowners had filed a writ petition challenging the arbitral award passed on 04.05.2016 by the arbitrator confirming the order dt.30.04.2012 passed by the competent authority, but the same was dismissed by the learned Single Judge on the ground that they have a remedy to challenge the same under section 34 of the Arbitration and Conciliation Act, 1996. This judgment is challenged by them in the said LPA.

8. In CWP-18775-2019, CWP-25229-2019, CWP-14487-2019 and CWP-18799-2019, the landowners had not approached the statutory Arbitrator for enhancement of compensation granted by the competent authority under the NATIONAL HIGHWAYS ACT ,1956 and had straight away approached this Court seeking the benefits akin to those granted under section 23 and 28 of the LAND ACQUISITION ACT , 1894.

Contentions of the land owners

9. The landowners place reliance on the judgment of the Division Bench of this Court in M/s Golden Iron and Steel Forgings v. Union of India and Ors., 2011(4) RCR (Civil) 375 (DB) dt.28.03.2008

10. In M/s Golden Iron and Steel Forgings (1 supra), a Division Bench of this Court held that in acquisitions of land under the National Highway Act, 1956, solatium and interest in terms of Section 23 (2) and Section 28 of the LAND ACQUISITION ACT , 1894 should be granted to landowners and Section 3-J and Section 3-G of the said Act, which did not provide for payment of solatium and interest and other statutory benefits similar to the provisions contained in Section 23 (1-A), Section 23 (2) and Section 28 of the LAND ACQUISITION ACT , 1894, were struck down.

11. This judgment was approved by the Supreme Court in Union of India and another v. Tarsem Singh and others, 2019(9) SCC 304.

12. The Supreme Court

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