In a significant ruling, the Allahabad High Court has directed the National Highways Authority of India (NHAI) to pay compensation to landowners whose property was acquired under the National Highways Act, 1956. The judgment, delivered by a bench comprising Justice Manoj Kumar Gupta and Justice Manish Kumar Nigam, underscores the legal mandate that compensation must be paid promptly once land vests in the Central Government, irrespective of subsequent administrative hurdles. The court’s decision highlights the importance of protecting landowners’ rights against delays in compensation, particularly in cases involving large-scale infrastructure projects like the Bharatmala Pariyojana.
Background of the Case:
In the case titled Mohammad Shahid and 2 Others vs. Union of India and 4 Others (WRIT – C No. 16025 of 2024), the petitioners sought a direction from the Allahabad High Court for the payment of compensation for land acquired by the National Highways Authority of India (NHAI). The land, located in Village Sarniya, Tehsil and District Bareilly, was acquired under the National Highways Act, 1956, with the acquisition process initiated on January 28, 2022, under Section 3-A of the Act. A subsequent declaration under Section 3-D was made on September 13, 2022, and an award was passed on July 6, 2023, valuing the land and the superstructure at approximately Rs. 12.48 crore.
Legal Issues Involved:
The core legal issue in this case revolved around the non-payment of compensation by the NHAI despite the land having vested in the Central Government following the declaration under Section 3-D of the National Highways Act, 1956. The petitioners argued that once the land vests in the Central Government, compensation must be paid without delay. NHAI, however, contended that due to a ban on incurring additional liabilities under the Bharatmala Pariyojana, imposed by the Ministry of Road Transport and Highways, they could not proceed with the compensation payments until further approval was obtained.
Decision of the Court:
The court categorically rejected the arguments presented by NHAI, emphasizing that once the land is vested in the Central Government under Section 3-D of the National Highways Act, 1956, the compensation must be paid without delay. The court observed:
“Section 3-H(1), which mandates that the State Government will deposit the compensation amount before taking possession, is not a provision enabling the Central Government to delay payment of the compensation amount and contend that the compensation would be paid as and when possession is taken. Rather, the said provision is for the benefit of the tenure holders, whose lands had been acquired under the provisions of the Act. It is a safeguard against taking over of possession of the land without payment of compensation.”
The court further noted that the reliance on the Office Memorandum dated November 23, 2023, which restricted the creation of new liabilities under the Bharatmala Pariyojana, was misplaced. The memorandum applies only to new acquisitions and contracts, not to ongoing obligations such as compensation for land already acquired. The court stated:
“The Office Memorandum would only apply to new projects of acquisition and works and contracts and not to the compensation amount under an existing award.”
The Allahabad High Court allowed the writ petition and issued a mandamus directing NHAI to release the compensation amount to the competent authority within four weeks of the order. This compensation is to be paid to the petitioners and other affected parties in accordance with the law.
Parties and Legal Representation:
– Petitioners: Mohammad Shahid and 2 Others
– Respondents: Union of India and 4 Others
– Counsel for Petitioners: Shiv Kant Mishra
– Counsel for Respondents: A.S.G.I., C.S.C., Rajesh Kumar Jaiswal
