The requirement for a fair hearing in disputes over compensation claims under property acquisition law was established.

J U D G M E N T

The petitioner has approached this court being aggrieved by the fact that the amount of compensation to be paid by the National Highway Authority of India (NHAI) in respect of the property acquired by the petitioner through Ext.P1 sale deed is being claimed by the 4th respondent who is none other than the daughter of the petitioner. It is submitted that the 4th respondent is claiming the compensation amount merely on the strength of of a document which evidences that the 4th respondent's name is entered in the revenue records as owner of the property for the purpose of payment of basic tax.

2. The learned counsel for the petitioner submits that there has been no transactions in respect of the property after the execution of Ext.P1 sale deed in favour of the petitioner and therefore merely on account of the fact that the basic tax is being remitted by the 4th respondent, the 4th respondent cannot claim that she is entitled to the compensation payable by the NHAI. The learned counsel submits that Ext.P4 representation has been preferred before the 2nd respondent who is the competent authority and direction may be issued to the 2nd respondent to consider Ext.P4 after affording to the petitioner an opportunity of being heard.

3. The learned counsel for the NHAI would submit that if there is a dispute regarding the person entitled to claim compensation, the compensation amount will have to be deposited in the District Court in terms of Section 3 H (4) of the National Highways Act and that court will have to determine as to who is entitled to the payment of compensation. However, he submits that the competent authority can consider Ext.P4 and can also examine as to whether there has been any subsequent transaction in respect of the property covered by Ext.P1 to determine who is entitled to payment of compensation.

4. Having heard the learned counsel for the petitioner, the learned counsel for the NHAI and the learned Government Pleader appearing for the competent authority (2nd respondent), this writ petition will stand disposed of directing the 2nd respondent to consider and pass orders on Ext.P4 after affording an opportunity of hearing to the petitioner and the 4th respondent, within a period of 2 months from the date of receipt of a certified copy of this judgment. Till such time as orders are passed in Ext.P4, any amount of compensation fixed for the land in question shall not be disbursed.