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2026 Supreme(Online)(HP) 3150

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA


2026:HHC:21565


Arb. Appeal No.9 of 2022


Reserved on: 14.05.2026

Decided on: 03.06.2026


National Highway Authority of India ….Appellant

Versus

Nikka Ram and others ...Respondents


Coram

Hon’ble Mr. Justice Romesh Verma, Judge


For the appellant: Ms. Shreya Chauhan, Advocate.

For the respondent: Mr. Rakesh Gupta, Advocate with

Mr.Rajesh Prakash, Advocate.

Petitioner Advocates:Shreya Chauhan ,Respondent Advocate: Peeyush Verma Rajesh Prakash Om Prakash Sangeeta Bandhu Rajesh Prakash Om Prakash

Romesh Verma, Judge

1. The present appeal arises out of judgment as passed by learned District Judge, Mandi, dated 20.11.2021 in Arbitration Petition No.10 of 2021, whereby the objections preferred by the present appellant/NHAI against the award as passed by Arbitrator-cum-Divisional Commissioner, Mandi Division, Mandi, dated 18.01.2020 exercising powers of Arbitrator under National Highways Act, 1956, have been dismissed and the findings as returned by the learned Arbitrator have been affirmed.

2. The facts, which are necessary for the adjudication of the instant appeal, are that the Central Government issued notification through Ministry of Road, Transport and Highways vide notification No. SO 872(E) dated 21.04.2012 and SO 1890 (E) dated 17.08.2012. The Central Government through Ministry of Road, Transport Highways declared its intention to acquire the land of the respondents. Vide acquisition notifications dated 29.04.2015, 12.05.2015, 03.12.2025 & 16.03.2016 bearing No.SO 1111(E), under Section 3(A)(i) of the Act, the structures of the respondents were acquired.

3. It is the case of the respondents that being senior citizens, they are running a Charitable Organization duly registered under Indian Society Registration Act, 25 of 2006 whose aim and essence is to promote education and development of education system in the State of Himachal Pradesh. They are joint owners of the land bearing Khasra No.346, measuring 00-10-10 bigha, situated in Muhal Kannaid/6, Tehsil Sunder Nagar, District Mandi, H.P.. The structures No.909 & 910 along with land, cowshed, Temple, porch, lawn and boundary wall were acquired under the National Highways Act, 1956 for four laning of National Highway NH-21 on the stretch of the land Bilaspur-Ner Chowk Section vide different notifications. The Central Government, after publication of notification in the Official Gazettee under Section 3D of NH Act, 1956 declared that the land scheduled under sub section (1) of Section 3A of NH Act, 1956, stands vested absolutely free from all encumbrances.

4. The competent authority i.e. CALA passed its award on 27.11.2013 vide No.51 for acquiring land measuring 0-1-12 bighas in Khasra No.346/1 in Muhal Kannaid. Similarly, Award No.51/1 dated 27.08.2014 was passed by CALA for acquiring 0-3-14 bighas over Khasra No.345/1. The competent authority i.e. CALA vide its supplementary award dated 14.08.2017 passed an award for acquiring the additional land. On 02.03.2019, supplementary award No.37/4 was passed for structures No.909 and 910. The value assessed for structure No.909 was Rs.83,42,616/- and structure No.910 was Rs.24,51,370/- along with statutory benefits under Section 30(1) and 30(3) of Right to Fair Compensation & Transparency in Land Acquisition, Rehabilitation & Resettlement Act, 2013.

5. Against the awards as passed by the competent Authority i.e. CALA, the present respondents preferred application under Section 3G(5) of the National Highways Act for the enhancement of compensation before the learned Arbitrator.

5. It was stated in the application that the procedure as adopted by the present appellant is erroneous, illegal and is not sustainable. Further, it was averred that the land of the respondents is situated abutting the National Highway along with structures No.909 and 910. It was stated in the objections that after coming to the knowledge and the intention of the objectors/respondents while widening of four lane road objections were raised by raising various contentions and various representations were made to the authorities. The grouse was made to the department, however, no heed was given to their requests despite issuance of various letters dated 22.09.2018, 10.10.2018, 10.12.2018, 31.01.2019, 06.02.2019, 25.02.2019, 14.05.2019 and 16.04.2019. It was stated that the land owners/respondents have only this source and the constructions as situated over the land is the only source of their livelihood and residence. They have no alternat

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