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2025 Supreme(P&H) 1829

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
HARKESH MANUJA, J.
Bir Singh - Petitioner
Versus
Union of India and others - Respondent
Civil Writ Petition No. 27183 of 2025 (O&M)
Decided On : 07-04-2026

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Satbir Rathore, Advocate
For the Respondent:Mr. Rishi Kaushal, Advocate with Ms. Komal Bishnoi, Advocate Mr. Puru Jarewal, Deputy Advocate General

Landowners whose properties are acquired under the same notification for the same public purpose are entitled to parity in compensation. Denying such parity is arbitrary and violates the constitutional right to equality, justifying the exercise of writ jurisdiction to ensure fair and equitable compensation.

Headnote:(A) National Highways Act, 1956 - Sections 3-A, 3-D, 3-G(1), 3-G(5) and 3-J - Arbitration and Conciliation Act, 1996 - Section 34 - Constitution of India - Articles 14, 226 and 300A - Compulsory land acquisition - Parity in compensation - Landowners whose lands are acquired under the same notification for the same public purpose are entitled to uniform compensation - Denial of such parity constitutes hostile discrimination and violates the constitutional mandate of equality - Writ jurisdiction under Article 226 is maintainable to prevent manifest arbitrariness and to avoid protracted litigation when statutory remedies are limited in scope and would cause undue hardship. (Paras 7.1, 8, 10, 10.4, 12)

(B) Writ Jurisdiction - Scope and ambit - While the scope of interference with arbitral awards is limited, the court may exercise plenary powers under Article 226 to ensure justice and fairness when the statutory authority acts in breach of fundamental principles of procedure or where the alternative remedy is ineffective or would result in further delay and harassment. (Paras 10, 10.4, 11)

Facts of the case:
The petitioner challenged an arbitral award regarding compensation for acquired land. The petitioner's land was acquired under the same notification and for the same public purpose as other landowners who were granted significantly higher compensation. The petitioner sought parity in compensation, arguing that the differential treatment was arbitrary and discriminatory.

Findings of Court:
The court found that the denial of parity to identically situated landowners, whose lands were acquired under the same notification, was patently arbitrary and violated the constitutional guarantee of equality. The court further held that relegating the petitioner to the statutory remedy under the arbitration law would be ineffective, as that forum lacks the power to modify or enhance compensation, and would only lead to further delay and hardship.

Issues: The main issues were the maintainability of the writ petition in light of the available statutory remedy and the entitlement of the petitioner to claim parity in compensation with other similarly situated landowners.

Ratio Decidendi: The court ruled that when landowners are identically situated and their lands are acquired under the same notification, they must be treated equally in the matter of compensation. The court emphasized that the constitutional mandate of equality overrides technical procedural objections, especially when the alternative remedy is inadequate to provide substantive justice.

Result: Petition allowed.

Table of Content
1. factual history regarding land acquisition and arbitration history. (Para 1 , 2 , 3)
2. parties' contentions on discrimination and availability of alternative remedies. (Para 4 , 5)
3. right to parity in compensation for similarly situated landowners. (Para 6 , 7 , 8 , 9)
4. article 226 maintainability when statutory arbitration remedies are ineffective. (Para 10 , 11 , 12)
5. final order granting compensation parity to avoid further litigation. (Para 13 , 14 , 15)

JUDGMENT :

HARKESH MANUJA, J.

The petitioner-landowner, by way of present petition, seeks issuance of a writ in the nature of certiorari quashing the impugned Award dated 18.01.2024 (Annexure P-4) passed by respondent No.4 totally in an illegal, arbitrary and discriminatory manner, without considering the award pertaining to the same acquisition and of the same village; for the same kind of land and further prays for issuance of a writ in the nature of mandamus directing the respondents to pay the similar amount of compensation as has been awarded to the identically placed landowners in accordance with an arbitral Award dated 28.07.2011 (Annexure P-5) passed by the Commissioner, Jalandhar Division-cum-Arbitrator (hereinafter to be referred as “Arbitrator”) in case No.MA-494-2009, titled “ Smt. Lilawati and others Versus Govt. of India and others ”; which was not challenged further by the respondent-NHAI and the same attained finality and has also been implemented in the year 2020 in execution proceedings.

[2] Reply on behalf of respondent Nos. 1 & 2-NHAI has already been filed and taken on record.

FACTS

[3] Briefly stating, some land owned by the petitioner situated in the revenue estate of Village Dugri Rajputan (situated within municipal limit), Tehsil Mukerian, District Hoshiarpur, came to be acquired in terms of notifications dated 24.12.2004 & 11.07.2005 issued under Sections 3-A & 3- D of the National Highways Act, 1956 (for short “1956 Act”) respectively for the improvement and widening of Jalandhar-Pathankot National Highway-1A KM 26.00 to 117.50 in the State of Punjab. On 23.04.2008, respondent No.3 passed an award under Section 3-G (1) of the 1956 Act, whereby the market value was assessed at the rate of Rs.50,000/- per marla.

[3.1] Being aggrieved, the petitioner sought arbitration invoking Section 3-G (5) of the 1956 Act, wherein vide Award dated 28.04.2011 (Annexure P-2), the learned Arbitrator assessed the market value of the acquired land at the rate of Rs. 1,50,000/- per marla for commercial and Rs. 1,25,000/- per marla for residential, besides award of other statutory benefits.

[3.2] Thereafter, respondent Nos.1 & 2 assailed the validity of the arbitration award dated 28.04.2011 before the Court of learned Additional District Judge, Jalandhar, having preferred Arbitration Case No.0800070/2011, which was allowed on 19.04.2012 (Annexure P-3) and after setting aside the Award dated 28.04.2011, the matter was remitted back to the learned Arbitrator for fresh decision.

[3.3] Later, after about 12 years of the above said remand order dated 19.04.2012, the learned Arbitrator vide its award dated 18.01.2024, adjudicated the matter afresh and dismissed the claim petition filed by the petitioner for enhancement of compensation. In doing so, learned Arbitrator ignored the award dated 28.07.2011 (Annexure P-5) passed in arbitration case of Smt. Lilawati (supra) pertaining to the same village; the acquisition made for the same public purpose, and of identical nature of land. The learned Arbitrator overlooked the fact that some identically placed landowners whose land was acquired under the same notification dated 24.12.2004 issued under Section 3-A of 1956 Act; for the same public purpose; followed by the same award dated 23.04.2008; were granted the benefit of enhanced market value at the rate of Rs.2,30,000/- per marla for similar nature of land, i.e. commercial/residential, vide award dated 28.07.2011 (Annexure P-5) passed in Smt. Lilawati’s case (supr

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