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2026 Supreme(Online)(Chh) 11277

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Amitendra Kishore Prasad, J
Arpita Jain – Appellant
Versus
State Of Chhattisgarh – Respondent
WPC No. 2188 of 2020



Advocates:
For the Appellants/Petitioners: Kashif Shakeel
For the Respondents: Ujjawal Choubey, Dhiraj Kumar Wankhede

Once an award is passed under the National Highways Act, 1956, the Competent Authority becomes functus officio and lacks jurisdiction to unilaterally review, modify, or alter the determined compensation.

Headnote:(A) National Highways Act, 1956 - Sections 3A, 3D, and 3G - Land Acquisition - Competency of authority to review/modify award - Once an award is passed under the National Highways Act, the Competent Authority becomes functus officio and lacks jurisdiction to unilaterally review, modify, or alter the said award - Rectification of multiplier factor in a final award through subsequent executive circulars is without jurisdiction.

Facts of the case:
The petitioners, as owners of acquired land, were granted compensation via an award dated 12.07.2016 using a multiplier factor of two. Subsequently, in 2019, the Competent Authority unilaterally passed a fresh order reducing the compensation by applying a multiplier of one, citing a 2017 state circular, without providing notice or opportunity of hearing to the landowners.

Findings of Court:
The court held that the Competent Authority exceeded its jurisdiction by altering the final award. Following the precedent set in WPC No. 665/2019, the court found the modifying order illegal as the authority had become functus officio upon passing the original award.

Issues: Whether the Competent Authority has the jurisdiction to reopen and modify an award after it has attained finality, and whether a later executive circular can retrospectively alter the multiplier factor used in a completed award.

Ratio Decidendi: An award passed under the National Highways Act, 1956, attains finality, and the Competent Authority possesses no statutory power to review its own decision once passed, rendered functus officio.

Result: Writ petition allowed; the modifying order was quashed, and the original award was restored.

Table of Content
1. factual background involving unilateral reduction of land acquisition compensation. (Para 1 , 2)
2. contentions regarding the authority of cala to review finalized awards. (Para 3 , 4 , 5)
3. an award under the national highways act is final; authorities are functus officio. (Para 6 , 7 , 8 , 9 , 10 , 11)

Order on Board

16/04/2026

1. The petitioners have filed this writ petition seeking following reliefs:

“10.1 That, this Hon'ble Court may kindly be pleased to call for the entire record pertaining to the proceedings, for its kind perusal.

10.2 That, this Hon'ble Court may kindly be pleased to issue an appropriate writ quashing and setting aside the order dated 14.11.2019 in Revenue Case No. 07/A-82/15-16 (Annexure P/2) passed by the Respondent No. 3 holding it to be illegal.

10.3 That, this Hon'ble Court may further kindly be pleased to issue an appropriate writ and direct the Respondents to pay the Compensation amount for the acquisition of the subject land as calculated in the Original Award dated 12.07.2016 (Annexure P/1) by applying the multiplier factor of TWO and to pay the same along with interest as well as penal interest.

10.4 That, this Hon'ble Court may kindly be pleased to grant any other relief, along with the cost of petition, as it may deem fit.”

2. Facts of the case, as projected in the petition, are that the petitioners are joint owners of the subject agricultural land bearing Khasra No. 243/2, admeasuring 0.0198 hectare, situated at Village Birejhar, Tahsil Kurud, District Dhamtari. The said land was earlier recorded in the name of one Shiv Kumar, who was the previous owner, and subsequently, upon culmination of civil proceedings, ownership came to be vested in the present petitioners. In the year 2015, the National Highways Authority of India initiated acquisition proceedings for the purpose of widening/extension of National Highway No. 30 (Raipur to Dhamtari stretch from Km 32.230 to 59.230) under the provisions of the National Highways Act, 1956. In furtherance thereof, notifications under Section 3A were issued and published in the Gazette on 13.03.2015 and in local newspapers on 19.04.2015. Thereafter, declaration under Section 3D(1) was published in the Gazette of India on 08.01.2016, followed by publication under Section 3G(3) in local newspapers on 25.01.2016 and 26.01.2016. Ultimately, the Competent Authority passed an award dated 12.07.2016 determining compensation for the acquired land. While passing the original award dated 12.07.2016, the Competent Authority applied a multiplier factor of two for rural areas in accordance with the notification dated 09.02.2016 issued by the Ministry of Rural Development, Government of India under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Consequently, compensation for the petitioners’ land was assessed at Rs. 16,26,768/-. However, due to pendency of a civil dispute between the previous owner Shiv Kumar and the present petitioners, the compensation amount was not disbursed at that time. Subsequently, in the year 2019, the civil suit was decided in favour of the petitioners, and their names were duly mutated in the revenue records. Thereafter, the petitioners approached the authorities seeking release of compensation along with applicable interest. However, instead of releasing the awarded amount, the Competent Authority passed a fresh order dated 14.11.2019, whereby the compensation was re-determined by applying a multiplier factor of one, purportedly in light of a State Government circular dated 25.05.2017. As a result, the compensation amount was drastically reduced to Rs. 8,44,668/-, almost half of the originally determined amount, without affording any notice or opportunity of hearing to the petitioners. It is further the case that an earlier State notification dated 04.12.2014 prescribing multiplier factor of one had already been chall

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