Court quashes award, grants right to file objections on land compensation under National Highway Authority Act

The court partially allowed the writ petition, quashing the award related to compensation for land constructed under the National Highway Authority Act, 1956. It held that the notifications for acquisition were valid, but the compensation assessment violated principles of natural justice and statutory provisions under Section 3-G of the Act. The petitioner was granted the right to file objections, and the respondents were directed to obtain valuation reports for constructions. The competent authority must provide a hearing and deliver a compliant award within three months.

---

---

Issues involved:
Challenge to the award in relation to land constructed by respondent-Authority under National Highway Authority Act, 1956; Validity of acquisition proceedings; Compensation assessment for standing construction; Compliance with statutory provisions for compensation under Section 3-G of the Act; Violation of principles of natural justice in awarding compensation.

Analysis:
The petitioner challenged the award related to land constructed by the respondent-Authority under the National Highway Authority Act, 1956, and questioned the validity of acquisition proceedings. The petitioner argued that the acquisition should be quashed due to the publication of the notification under Section 3-D of the Act within the prescribed time. Additionally, the petitioner claimed that the compensation assessment for the standing construction was erroneous and violated principles of natural justice. The petitioner contended that compensation could not be determined without assessing the value of the building and without providing an opportunity to file objections. The court found that the notifications issued under Section 3-D of the Act were valid and did not cease as per the terms of the Act. The court also noted that the award failed to comply with the statutory provisions for compensation assessment under Section 3-G of the Act.

The respondent argued that the award made by the authority was subject to the provisions of the Arbitration and Conciliation Act, 1996, and the petitioner's remedy for compensation lay in invoking the jurisdiction of the 1996 Act before the competent court. However, the court observed a statutory obligation for publishing a notice in two newspapers for compensation under Section 3-G of the Act, which was not fulfilled in this case. The court held that the award was in violation of principles of natural justice and contrary to the provisions of Section 3-G, leading to a quashing of the award related to agricultural land.

As a result of the judgment, the petitioner was granted the right to file objections regarding the land and constructions standing thereon. The respondents were directed to obtain the valuation report for the constructions and inform the petitioner to file objections accordingly. The competent authority was instructed to deliver the award in compliance with Section 3-G of the Act after providing a hearing to the petitioner. The court allowed the writ petition partly, quashing the award related to compensation and setting a timeline of three months for the completion of the necessary procedures.

---