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2025 Supreme(P&H) 1830

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
HARKESH MANUJA, J.
Suresh Kumar and another - Petitioners
Versus
Union of India and others - Respondents
Civil Writ Petition No. 29401 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

When landowners are identically situated under the same acquisition notification, denying them parity in compensation constitutes hostile discrimination. In such cases, courts may exercise writ jurisdiction to grant relief, bypassing limited statutory arbitration remedies to prevent further delay and ensure just and fair compensation.

Headnote:(A) Constitution of India - Article 14 - Right to equality - 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 before law. (Paras 7.1, 8, 9.2)

(B) Arbitration and Conciliation Act, 1996 - Section 34 - Scope of judicial interference - Court is empowered only to set aside an arbitral award and lacks jurisdiction to modify or enhance compensation - Where statutory remedy is ineffective or would lead to further delay and hardship, writ jurisdiction under Article 226 is maintainable to ensure just and fair compensation. (Paras 4.1, 10, 10.4)

(C) Writ Jurisdiction - Article 226 - Exercise of plenary power - Court may intervene to prevent manifest arbitrariness and to avoid unnecessary remand where the entitlement to compensation has already attained finality in respect of similarly situated persons. (Paras 10.1, 10.3, 12)

Facts of the case:
Landowners challenged an arbitral award that denied them enhanced compensation for acquired land, despite other landowners in the same acquisition process receiving higher compensation. The petitioners sought parity in compensation, arguing that the denial was discriminatory and arbitrary.

Findings of Court:
The court found that the denial of parity for identically situated landowners, whose land was acquired under the same notification and for the same purpose, was patently arbitrary and violated the constitutional right to equality.

Issues: Whether the court can exercise writ jurisdiction to grant parity in compensation when the statutory remedy under the arbitration law is limited and would cause undue delay and hardship.

Ratio Decidendi: The court held that to prevent discrimination and ensure just compensation, it is appropriate to invoke writ jurisdiction to grant parity, rather than relegating parties to a limited statutory remedy that would only result in further litigation and delay.

Result: Petition allowed; landowners held entitled to compensation at the same rate as previously awarded to similarly situated persons.

Table of Content
1. factual history of land acquisition and arbitration proceedings under the 1956 act. (Para 3)
2. parties' contentions regarding discrimination and maintainability of the writ petition. (Para 4 , 5)
3. recognition of arbitrary discrimination against landowners compared to similarly situated claimants. (Para 6 , 7)
4. identically situated landowners are entitled to equal compensation for acquired land. (Para 8 , 9)
5. writ jurisdiction is maintainable to prevent abuse of process and provide substantive justice. (Para 10 , 11)
6. final court order granting parity in compensation to avoid further delay. (Para 12 , 13 , 14 , 15)

JUDGMENT :

HARKESH MANUJA, J.

The petitioners-landowners, by way of present petition, seek issuance of a writ in the nature of certiorari quashing the impugned Award dated 18.01.2024 (Annexure P-3) 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 pray 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-4) 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(s) 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(s) sought arbitration invoking Section 3-G (5) of the 1956 Act, wherein vide Award dated 08.07.2011 (Annexure P-1), the learned Arbitrator assessed the market value of the acquired land at the rate of Rs.2,30,000/- per marla, besides award of other statutory benefits.

[3.2] Thereafter, respondent Nos.1 & 2 assailed the validity of the arbitration award dated 08.07.2011 before the Court of learned Additional District Judge, Jalandhar, having preferred Arbitration Case No. 5687/2012, which was allowed on 01.07.2013 (Annexure P-2) and after setting aside the Award dated 08.07.2011, the matter was remitted back to the learned Arbitrator for fresh decision.

[3.3] Later, after about 11 years of the above said remand order dated 01.07.2013, the learned Arbitrator vide its award dated 18.01.2024, adjudicated the matter afresh and dismissed the claim petition filed by the petitioners for enhancement of compensation. In doing so, learned Arbitrator ignored the award dated 28.07.2011 (Annexure P-4) 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.

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