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2025 Supreme(Online)(KER) 12692

IN THE HIGH COURT OF KERALA AT ERNAKULAM
VIJU ABRAHAM, J
MURALIDHARAN NAIR – Appellant
Versus
NATIONAL HIGHWAY AUTHORITY OF INDIA – Respondent
WP(C) NO. 28483 OF 2022



Advocates:
For the Appellant: S.KRISHNAMOORTHY, SNEHA ROSE, P.S.ARUNA
For the Respondent: K.P.SATHEESAN (SR.), P.MOHANDAS (ERNAKULAM), K.SUDHINKUMAR, SABU PULLAN, GOKUL D. SUDHAKARAN, R.BHASKARA KRISHNAN

Fair compensation must consider the structural value of properties acquired under eminent domain.

Headnote:Statute Analysis: The judgment revolves around Section 3(G)(5) of the National Highway Act regarding compensation for property acquisition. Facts of the Case: The petitioner claimed additional compensation after an inadequate initial award.

Findings of Court:
The court found the need for a fresh evaluation of the structural value.

Issues: The main question addressed was whether the structural value should be included in compensation calculations.

Ratio Decidendi: The court emphasized timely submission of valuation reports and affirmed the need for fair compensation, stating the NHAI must deposit the compensation amount within two months.

Result: The writ petition is disposed of with directions to deposit within an outer limit of 2 months.

JUDGMENT

The petitioner has approached this Court seeking a direction to the respondents to pass fresh award in respect of the commercial building No.10/847 of Haripad Municipality in Survey No.277/25 of Haripad Village to the tune of Rs.39,84,332/- along with other statutory benefits and to disburse the same to the petitioner, subject to claiming enhanced compensation under Section 3(G)(5) of the National Highway Act before proceedings with the acquisition.

2. The specific case of the petitioner is that only the value of the land was awarded, but the structural value of the commercial building has not been taking into consideration.

3. A counter affidavit has been filed by the

3rd respondent wherein paragraph 6 is stated that the value of the structure could not be determined as the detailed valuation report was not received within time and that the additional DVS in respect of the petitioner's building is under preparation and the same will be submitted to the office of the National Highway Authority of India, ie, requisitioning authority for depositing additional funds. The additional structural value of the commercial building of the petitioner will be issued soon on receipt of funds from the requisitioning authority. Paragraph 6 of the counter affidavit reads as follows:

“6. It is submitted that the structural value of the commercial building of the petitioner was evaluated by the agency appointed by the NHAI and the same have been scrutinized and certified by the State PWD authorities as Rs.37,45,272/- after deducting the 6% salvage value. But the structure value of the petitioner's building was not included in the Detailed Valuation Report(DVS) as the same has not been received on time from the PWD Authorities before the 3G(I) determination. The additional DVS in respect of the petitioner's building is under preparation and the same will be submitted to the office of the NHAI, requisitioning authority for depositing additional funds. The award of compensation for the structural value of the commercial building of the petitioner will be issued soon on receipt of funds from the requisitioning authority”.

4. The learned Government Pleader upon instructions submitted that all the proceedings are now over and what remains now is depositing of the additional fund by the requisitioning authority, ie, the National Highway Authority of India.

5. In the light of the above, the writ petition is disposed of as follows:

The National Highway Authority of India shall deposit the amount towards the commercial building in the property, without any delay, at any rate, within an outer limit of 2 months from the date of receipt of a copy of the judgment. Thereafter, the 3rd respondent shall pass a revised award in respect of the commercial structure in the property within a period of one month thereafter.

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