The Allahabad High Court has dismissed a writ petition filed by Central U.P. Gas Limited seeking protection against alleged interference with its possession over land at Chakeri, Kanpur Nagar, and a direction for re-alignment of the Kanpur Ring Road Project to save its existing CNG and PNG infrastructure. A Division Bench of Justice Mahesh Chandra Tripathi and Justice Kunal Ravi Singh held that re-alignment of a national highway project involves technical, financial and administrative considerations to be examined by expert authorities, and that interference under Article 226 was not warranted after the project had substantially progressed.
Background of the Case
Central U.P. Gas Limited, a public limited company incorporated under the Companies Act, 1956, is a joint venture of Gas Authority of India Limited and Bharat Petroleum Corporation Limited. The company has been authorised by the Petroleum and Natural Gas Regulatory Board to develop and operate City Gas Distribution Networks in Kanpur, Unnao, Bareilly and Jhansi.
The petitioner stated that it had acquired leasehold rights over Plot No. 203 (Part), situated at Chakeri, Tehsil-Sadar, District-Kanpur Nagar, measuring about 1,750 square metres, from the Kanpur Development Authority through a registered lease deed dated March 31, 2010, for 90 years.
According to the petitioner, after obtaining the land, it established a CNG Filling Mother Station in 2011. The station was connected with the High Pressure Steel Pipeline Network and a District Regulating Station, along with a Medium Density Polyethylene pipeline network, was installed for PNG supply to nearby residential areas.
The petitioner submitted that thousands of vehicles are refuelled daily at the station and six DB stations are also supplied through it. It claimed that large investments had been made for machinery, pipelines and other infrastructure.
The dispute arose after the petitioner received a notice dated March 16, 2026, from the Competent Authority/Additional District Magistrate (Land Acquisition), Kanpur, stating that the land had been acquired for the Kanpur Ring Road Project under the National Highways Act, 1956. The notice referred to notifications under Sections 3A(1) and 3D(1) of the Act and directed the petitioner to appear for receiving ex gratia compensation for structures standing on the land.
Petitioner’s Arguments
The petitioner contended that before receiving the March 16, 2026 notice, no communication, notice or intimation regarding the acquisition proceedings had been served on it. It also submitted that no survey or demarcation was conducted in its presence, due to which it remained unaware of the acquisition proceedings.
The company later came to know that notifications under Sections 3A(1) and 3D(1) of the National Highways Act had been issued on September 1, 2022, and February 2, 2023, respectively, for acquisition of land for the Kanpur Ring Road Project, and that its land was also included.
The petitioner said it submitted representations dated March 20, 2026, and April 13, 2026, seeking re-alignment of the proposed road project to protect the existing CNG and PNG infrastructure, but the representations were either rejected or kept pending without effective consideration.
It further argued that officials of the authorities visited the site, marked more than 35% of the land for acquisition, and threatened demolition of the boundary wall, machinery and other installations.
The petitioner submitted that acquisition of even 30 to 40% of the land would make the entire CNG station and District Regulating Station non-functional, as the station would fail to comply with mandatory safety requirements prescribed by statutory authorities including the Petroleum and Explosives Safety Organization, Fire Department and Pollution Control Board.
It was also contended that no compensation had yet been paid as required under Section 3H of the National Highways Act, 1956, and therefore possession could not legally be taken under Section 3E of the Act.
NHAI’s Stand
Opposing the writ petition, counsel for NHAI submitted that the Section 3A notification was published as far back as September 1, 2022.
The Court recorded that, according to NHAI, the project had already been approved in the 68th Meeting of the Land Acquisition Committee held on February 21, 2022. Thereafter, the Section 3D notification was published on February 2, 2023.
NHAI also informed the Court that the appointed date for Kanpur Ring Road Package-III was declared on January 28, 2025, and approximately 50% of the construction work had already been completed.
It was argued that at such an advanced stage, any modification or change in alignment was not feasible and would seriously affect execution of the project. NHAI submitted that it would be appropriate for the petitioner to shift its unit to an alternative location.
Court’s Analysis
The High Court noted that the Kanpur Ring Road Project was approved in the 68th Meeting of the Land Acquisition Committee held on February 21, 2022. The Section 3A notification was issued on September 1, 2022, inviting objections from all concerned persons, and the final declaration under Section 3D was issued on February 2, 2023.
The Bench also referred to the communication dated April 17, 2026, which showed that the appointed date for Kanpur Ring Road Package-III was declared on January 28, 2025, and that a substantial portion of the construction work had already been completed.
The Court held:
“Thus, the acquisition proceedings have attained finality and the project is presently at an advanced stage of execution.”
On the petitioner’s main prayer for re-alignment, the Court said such a relief could not be granted in exercise of writ jurisdiction under Article 226, particularly when the project concerned a major public infrastructure scheme undertaken in larger public interest.
The Court observed:
“The question of alignment of a national highway project involves technical, financial and administrative considerations, which are required to be examined by the expert authorities concerned.”
It further held:
“Once the alignment has been finalized after due approval and the project has substantially progressed, any interference at this stage would not only delay the project but would also increase public expenditure and adversely affect the rights and interests of other landowners and stakeholders connected with the project.”
Key Observations
The High Court said the petitioner had sufficient opportunity to raise its grievance at the appropriate stage, since the Section 3A notification was published in 2022 and the Section 3D declaration followed in 2023.
The Bench noted that the petitioner approached the authorities for re-alignment only in 2026, after substantial progress had already been made in execution of the project.
Rejecting the petitioner’s argument based on lack of individual notice, the Court observed:
“Even though the petitioner contends that no individual notice was served upon it, the acquisition notifications were issued in accordance with law and were part of the public domain.”
The Court further said:
“The petitioner, being a public utility company and a large commercial establishment, was expected to remain vigilant regarding acquisition proceedings affecting its land and infrastructure.”
On the apprehension of demolition and closure of the CNG station, the Court said public authorities were expected to act fairly and reasonably while implementing the project.
At the same time, it clarified that although no case was made out for interference with the acquisition proceedings or re-alignment, the petitioner may approach NHAI seeking reasonable time for shifting its infrastructure and making alternative arrangements.
The Court directed:
“In case such a request is made, the same shall be considered sympathetically and in accordance with law, keeping in view the fact that the petitioner is providing an essential public utility service to the consumers of the area.”
Decision
The Allahabad High Court held that the writ petition lacked merit and dismissed it. It refused to interfere with the acquisition proceedings or direct re-alignment of the Kanpur Ring Road Project, but left it open to the petitioner to approach NHAI for reasonable time to shift its infrastructure and make alternative arrangements.
Counsel for Parties
For Petitioner: Puneet Agarwal
For Respondents: A.S.G.I., C.S.C., Pranjal Mehrotra
Additional Chief Standing Counsel for State-respondents: Ambrish Shukla
Case Details
Case Title: Central UP Gas Limited Versus Union of India and 3 others
Case No.: WRIT – C No. – 19903 of 2026
Bench: Justice Mahesh Chandra Tripathi and Justice Kunal Ravi Singh
Date: May 27, 2026
