Allahabad High Court Denies Return of Unutilized Land Acquired Under National Highways Act

Court orders immediate compensation to petitioners if unpaid, but upholds permanent vesting of acquired land.

In a significant ruling, the Allahabad High Court has dismissed a plea seeking the return of land acquired under the National Highways Act, 1956, despite it remaining unutilized for the intended purpose. The division bench, comprising Justices Ajit Kumar and Swarupama Chaturvedi, delivered the judgment on November 20, 2025, in the case of "Ameer Ahmad v. Union of India."

The petitioners, Ameer Ahmad and others, had approached the court under Article 226 of the Constitution, seeking the return of their land acquired for the construction of National Highway 87 from Rampur to Kathgodam. They contended that the land was not used for the highway and should be reverted to them based on the District Magistrate's opinion that the land remained unutilized.

However, the court upheld the arguments presented by the counsel for the National Highways Authority of India (NHAI). It was argued that once land is acquired under the National Highways Act, it becomes vested under Section 3D(2) of the Act, and there is no statutory provision allowing the original tenure holder to reclaim it, even if unutilized. The NHAI further clarified that such lands could be used for utilities, service lanes, and drainage, not solely for highway construction.

The court acknowledged that no compensation had been awarded to the petitioners to date. Therefore, while dismissing the plea for the return of the land, the court directed the authorities to expedite the disbursement of compensation under the award, emphasizing that it should preferably be completed within one month from the submission of a certified copy of the court's order.

The judgment reinforces the legal standing of land acquired under special statutes like the National Highways Act, highlighting the lack of provisions for reverting unutilized land to its original owners. However, it ensures that compensatory measures are promptly addressed, providing some relief to the petitioners.

Bottom Line:

Land acquired under the National Highways Act, 1956 cannot be returned to the original tenure holder even if it is not utilized for the purpose for which it was acquired. However, if compensation has not been disbursed, authorities are directed to ensure its payment promptly.

Statutory provision(s): National Highways Act, 1956 Section 3D(2)

Ameer Ahmad v. Union of India, (Allahabad)(DB) : Law Finder Doc Id # 2818841