Supreme Court Uses Article 142 to Reinstate Section 34 Petitions After High Court's Unconstitutional Ruling on National Highways Act
In a significant judgment delivered on January 13, 2026, the Supreme Court of India, comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi, invoked its powers under Article 142 of the Constitution to revive Section 34 petitions that were dismissed following a High Court judgment declaring Sections 3G and 3J of the National Highways Act, 1956, unconstitutional.
The case, titled "M/s Riar Builders Pvt Ltd v. Union of India," involved petitions filed by landowners challenging the compensation awarded for land acquisition under the National Highways Act. These petitions were withdrawn after the Punjab and Haryana High Court's decision on March 20, 2025, which invalidated the statutory arbitral mechanism. However, the Supreme Court stayed the High Court’s judgment on May 30, 2025, temporarily reviving the arbitral framework.
The Supreme Court's order sets aside the withdrawal of petitions by the Additional District Judge, Bhiwani, allowing the petitions to proceed from the stage of withdrawal. The Court emphasized the need for complete justice, highlighting the limitations faced by landowners due to the delay and legal intricacies following the High Court's ruling.
During the hearing, the Supreme Court addressed disparities in compensation mechanisms for land acquired under different acts, suggesting a legislative review to ensure parity as per Article 300-A of the Constitution. The Court observed that landowners under the National Highways Act are treated differently from those under the Land Acquisition Act, 1894, or the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, leading to potential inequities.
The judgment calls for legislative introspection, urging the Union of India to revisit the legislative scheme to align compensation determination mechanisms across different land acquisition acts. The Court refrained from expressing a final opinion, acknowledging the issue's legislative nature, and requested the Attorney General to consider the matter.
The Supreme Court's decision underscores its role in ensuring justice and equity in land acquisition cases, setting a precedent for the treatment of similar cases in the future. The matter is scheduled for further consideration on April 21, 2026, with interim orders remaining in effect.
Bottom Line:
The Supreme Court invoked its powers under Article 142 of the Constitution to revive Section 34 petitions dismissed due to a High Court judgment declaring Sections 3G and 3J of the National Highways Act, 1956 unconstitutional. Further, the Court suggests revisiting the legislative scheme for parity in compensation mechanisms for land acquisition.
Statutory provision(s): Article 142 of the Constitution of India, Sections 3G and 3J of the National Highways Act, 1956, Section 34 of the Arbitration and Conciliation Act, 1996, Article 300-A of the Constitution of India.
M/s Riar Builders Pvt Ltd v. Union of India, (SC) : Law Finder Doc Id # 2840228
