IN THE HIGH COURT OF ALLAHABAD
MANOJ KUMAR GUPTA, MANISH KUMAR NIGAM, JJ.
Mohammad Shahid and Others – Petitioners
Versus
Union of India and Others – Respondents
Writ (C) No. 16025 of 2024
Decided On : 04-07-2024
COMPENSATION - LAND ACQUISITION - National Highways Act, 1956: Sections 3-A, 3-D, 3-E, 3-F, 3-G, 3-H - The court interpreted the provisions of the National Highways Act, 1956, emphasizing that once land is vested in the Central Government under Section 3-D, the government is obligated to pay compensation regardless of possession. The court highlighted that Section 3-H mandates the deposit of compensation before taking possession, ensuring that affected landowners are not deprived of their rights. The court concluded that the NHAI's refusal to pay compensation based on a ban on new liabilities was contrary to the Act's provisions.
Fact of the Case:
The petitioners sought compensation for land acquired under the National Highways Act, 1956, which was notified for acquisition on 28.01.2022. An award was declared on 06.07.2023, but compensation was not paid due to a lack of financial approval from NHAI, citing a government memorandum banning new liabilities.
Finding of the Court:
The court found that the NHAI's refusal to pay compensation was not supported by the law. It ruled that the land vested in the Central Government upon notification, and compensation must be paid regardless of possession. The court emphasized that the provisions of the Act protect the rights of landowners.
Issues: Whether the NHAI is obligated to pay compensation for land acquired under the National Highways Act despite not taking possession, and whether the government's memorandum affects this obligation.
Ratio Decidendi: The court held that the vesting of land under Section 3-D of the National Highways Act obligates the government to pay compensation as determined by the competent authority, irrespective of possession. The provisions of the Act are designed to protect landowners from delays in compensation.
Final Decision: The writ petition was allowed, and a mandamus was issued to the NHAI to provide the compensation amount to the competent authority for disbursement to the petitioners within four weeks.
JUDGMENT :
1. The prayer made in the instant petition is for a direction to the respondents to pay compensation to the petitioners in pursuance of award of the Competent Authority, Bareilly dated 06.07.2023 in respect of land bearing Gata No. 156 area 0.6053 hectare of revenue Village-Sarniya, Tehsil and District-Bareilly and also interest on the compensation amount.
2. The case of the petitioners is that their land aforesaid was notified for acquisition on 28.01.2022 under Section 3-A of the National Highways Act, 1956 (for short 'the Act') followed by notification under Section 3-D of the Act dated 13.09.2022. An award was declared by the competent authority on 06.07.2023. The value of land determined is Rs.3,02,65,000/-and of super structure as Rs.2,95,64,257/-. Thus, the petitioner has become entitled to a sum of Rs.5,98,29,257/-plus solatium and other statutory benefits. The total sum would be Rs.12,48,72,386/-. The competent authority addressed a communication to the Project Director, NHAI on 17.07.2023 for making available the requisite amount to facilitate payment of the compensation amount to the affected persons. The Project Director, in turn, sent a communication dated 19.10.2023 to the higher authorities seeking financial approval. It seems that the higher authorities of NHAI did not accord financial approval and as a result whereof the compensation amount has not been paid to the petitioners so far.
3. The competent authority in its instructions supplied through learned Standing Counsel took the stand that the amount has not been made available to him by NHAI and, therefore, compensation has not been paid.
4. The Project Director, NHAI has filed his affidavit on behalf of respondent no. 5 (NHAI) and therein it is not disputed that the subject land of the petitioner was acquired under the provisions of National Highways Act, 1956. However, the stand taken is that the Ministry of Road Transport and Highways through Office Memorandum dated 23.11.2023 placed ban on incurring additional expense/liability under Bharatmala Pariyojana and, therefore, the compensation amount has not been approved nor transmitted to the account of competent authority for payment. Copy of the Office Memorandum dated 23.11.2023 has been brought on record as Annexure CA-2 and it reads as follows:
Government of India
Ministry of Road Transport & Highways
Transport Bhawan, 1, Parliament Street, New Delhi-11001
New Delhi 23rd November, 2023
OFFICE MEMORANDUM
Sub: Non-creation of any liability under Bharatmala Pariyojana Phase-I.
I am directed to inform that during the meeting held on 10.11.2023 under the chairmanship of Secretary, Expenditure on Pre-Budget discussion for deciding Revised Estimate of 2023-24 and Budgetary Estimate of 2024-25, it was clarified that no new liability is to be created under Bharatmala Pariyojana Phase-I until the revised CCA approval is obtained. This has been further reiterated vide Secretary, Expenditure D.O. letter dated 16.11.2023 in which it has been categorically mentioned that:
“(i) No new works are approved and no contracts are awarded under Bharatmala under any phase until CCEA approval is received (ii) No Expenditure is incurred beyond the level of 20% above the amount approved by the CCEA in 2017, except for (a) inevitable payments such as contractually payable amounts under ongoing contracts, (b) expenditure under Vivad Se Vishwas 1 & 2 schemes (which have been separately sanctioned by the Government).”
2. Accordingly, all concerned are requested to strictly adhere to the above direction of the Secretary, Expenditure and no additional liabilities are to be created including liabilities on land acquisition and pre-construction activities under Bharatmala Pariyojana without approval of the Competent Authority.
(Kamal Parkash)
Under Secretary to the Govt. of India
Telphone: 011-23710454
Planningmorth@gmail.com”
5. Reliance has been placed on Section 3-H of the Act to contend that the petitioner
AI
The National Highways Act, 1956 mandates that once land is vested in the Central Government, compensation must be paid to affected landowners regardless of possession, ensuring their rights are prote....
Section 3-G(4) of Act stipulates that such notice shall state particulars of land and shall require all persons interested in such land to appear in person or by an agent or by a legal practitioner b....
Once the award amount is deposited with the 3rd respondent, the land acquisition proceedings are deemed to have been completed, and there is no necessity to go for initiation of fresh land acquisitio....
The judgment establishes that compliance with procedural requirements in land acquisition is essential, and failure to notify affected parties or timely deposit of compensation invalidates the acquis....
The court established that compliance with procedural requirements of the National Highways Act is essential for valid land acquisition, particularly regarding timely compensation to affected parties....
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