IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Sharad Kumar Sharma, J.
M/s Universal Construction Machinery and Equipment Limited - Petitioner
Versus
National Highway Authority of India & another - Respondents
Writ Petition (M/S) No. 225 of 2023
Decided On : 20-02-2023
Interest Payment - Land Acquisition - National Highways Act, 1956 - [Section 105, Section 28, Section 34, Section 3G(5)] - The court discussed the entitlement of interest and solatium payable on land acquired under the National Highways Act, 1956, and the appropriate forum for determining the interest and its entitlement. The judgment of 'Union of India Vs. Tarsem Singh' was referenced to establish the principles of payment of solatium and interest. The court held that the appropriate forum for the petitioner to determine the interest and its entitlement would be under section 3G(5) of the National Highways Act, 1956, and not through a writ petition under Article 226 of the Constitution of India.
Fact of the Case:
The petitioner sought payment of interest calculated on the acquisition of land under the National Highways Act, 1956. The court analyzed the petitioner's claim for interest and the impact of Article 300A of the Constitution of India. The court also discussed the principles of payment of solatium and interest as per the judgment of 'Union of India Vs. Tarsem Singh'.
Finding of the Court:
The court found that the appropriate forum for the petitioner to determine the interest and its entitlement would be under section 3G(5) of the National Highways Act, 1956, and not through a writ petition under Article 226 of the Constitution of India.
Issues: The issues revolved around the entitlement of interest and solatium payable on land acquired under the National Highways Act, 1956, and the appropriate forum for determining the interest and its entitlement.
Ratio Decidendi: The court held that the appropriate forum for the petitioner to determine the interest and its entitlement would be under section 3G(5) of the National Highways Act, 1956, and not through a writ petition under Article 226 of the Constitution of India.
Final Decision: The writ petition was dismissed, but dismissal was without prejudice to the rights of the petitioner to approach the competent authority as contemplated under section 3G(5) of the National Highways Act of 1956, with regards to the relief claimed in the writ petition.
JUDGMENT :
Sharad Kumar Sharma, J.
The petitioner in the present writ petition had prayed for the following reliefs:-
ii. Issue a writ, order or direction in the nature Mandamus directing the respondents to pay statutory interest along with penal interest calculated on Rs 2,06,43,507/- (Rupees Two Crores Six Lakhs, Forty Three Thousand Five Hundred & Seven only) from the Date of Possession to the Date of Amount Received;
iii. Issue any other writ, order or direction which this Hon'ble Court deems fit and proper.
iv. award Cost of the Petition.”
2. In fact the relief of payment of the interest, which has been determined by the petitioner to be payable, as referred to, in the relief clause is a self assessment which has been made by the petitioner for the deprivation of his land, which has been taken over by way of an acquisition under the provisions of the National Highways Act, 1956. The petitioner submits, that the petitioner would be entitled for an interest from the date of the possession i.e. 28.12.2017, and the claim of the interest, which would be payable on it would be rather 15% instead of 9%, which has been actually paid to the petitioner.
3. There are various contentions, which has been raised by the learned counsel for the petitioner and this Court feels it apt to deal it with chronology. The first argument which has been extended by the learned counsel for the petitioner is with regards to the impact of the Article 300A of the Constitution of India. So far as the implications of Article 300A of the Constitution of India is concerned, it is not in dispute, even by the petitioner, that the land has been taken over as a consequence of the notification of the acquisition issued under the National Highways Act, 1956, and in lieu thereof, the award has also been paid along with interest @ 9%.
4. In that eventuality, where the award has been paid it cannot be said, that taking over of the land was not in consonance or was in violation, to the provisions of the law, Article 300A of the Constitution of India, will only be attracted when the possession is taken of the land of an owner, dehors to the provision and procedure prescribed under law, which would not be a case at hand, because here the controversy has to be splited into for its consideration, where the relief sought for, is confined for the payment of the interest at a particular claimed rate of interest from the date of taking over of the possession i.e 28.12.2017. Hence, the argument extended from the prospective that Article 300A of the Constitution of India, will not be sustainable.
5. Learned counsel for the petitioner has ventured to argue, that the petitioner would be entitled for the interest, because the concept of solatium and interest, which is contained under the provisions of the Land Acquisition Act, has been borrowed to be applied in the acquisition proceedings, which are held under the National Highways Act 1956, as per the parameters laid down by the Hon’ble Apex Court in the judgment of the “Union of India Vs. Tarsem Singh” as rendered in SLP (C) No.9599 of 2019. The relevant paragraph nos.29 and 31, 46 to 48, are extracted hereunder:-
Courts should minimally interfere with arbitral awards unless there is a patent illegality or violation of public policy.
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Sections denying solatium and interest to landholders under the National Highways Act are unconstitutional; landowners are entitled to these benefits as per recent Supreme Court ruling.
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