Court Directs Compliance with 2013 Act for Interest on Enhanced Compensation in National Highway Land Acquisition
In a significant ruling, the Punjab and Haryana High Court has directed the payment of enhanced interest on compensation for land acquisition under the National Highways Act, 1956, in accordance with the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The decision came in response to a writ petition filed by landowners Kuldeep Singh and others, challenging the award granted by an arbitrator in relation to their land acquired for the development of the Delhi-Amritsar-Katra National Highway.
The court, presided over by Justice Harkesh Manuja, found that the arbitrator erred in awarding interest at a flat rate of 9% from the date of filing the application until the deposit of the enhanced compensation. Instead, the court held that the petitioners were entitled to interest at 9% for the first year and 15% per annum thereafter from the date of possession, as mandated by Section 72 of the 2013 Act. The ruling emphasized the necessity of applying the beneficial provisions of the 2013 Act to avoid discrimination among landowners affected by acquisitions under different statutes.
The court's decision was grounded in established legal precedents, including the Supreme Court's judgment in Tarsem Singh's case, which affirmed the applicability of solatium and interest provisions of the 2013 Act to acquisitions under the National Highways Act, 1956. The judgment also addressed the scope of judicial review under Article 226 of the Constitution, highlighting the court's role in ensuring justice and fairness in cases of manifest arbitrariness or discrimination.
Justice Manuja underscored that the petitioners' plea was justified given the reliance on earlier awards for similarly situated landowners, where interest was awarded in line with the 2013 Act. The court noted that the failure to extend identical treatment constituted arbitrary and discriminatory conduct, violating Article 14 of the Constitution.
In conclusion, the court modified the arbitrator's award to grant the petitioners the entitled interest rates under the 2013 Act, ensuring they receive just compensation for their acquired land. This decision reinforces the principle of uniform application of compensation laws, thereby upholding the rights of landowners subjected to compulsory land acquisition.
Bottom line:-
Land Acquisition - Compensation under the National Highways Act, 1956 must include interest as per Section 72 and Section 80 of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, to ensure parity and avoid discrimination among landowners.
Statutory provision(s): National Highways Act, 1956; Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Sections 72, 80, and 105(3); Constitution of India, Article 14; Arbitration and Conciliation Act, 1996, Section 34.
Kuldeep Singh v. Union of India, (Punjab And Haryana) : Law Finder Doc id # 2888128
