Bombay High Court Allows Petitions Challenging Mechanical Rejection of Rehabilitation Claims Under National Highways Act. The Court held that the provisions of the First, Second, and Third Schedules of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 apply to land acquisition under the National Highways Act, 1956, and the Competent Authority must individually assess each claimant's entitlement to rehabilitation and resettlement benefits.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

This batch of writ petitions involved a common question of law: whether and how the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (2013 Act) apply to land acquisition under the National Highways Act, 1956 (NH Act). The petitioners, whose lands were acquired for national highway projects, contended that they were entitled to compensation under the First Schedule, rehabilitation and resettlement under the Second Schedule, and infrastructure amenities under the Third Schedule of the 2013 Act. They argued that their requests for such entitlements were mechanically rejected by the Competent Authority, which relied on a Manual of Guidelines instead of objectively applying the substantive provisions of the 2013 Act. The respondents, including the Union of India and the National Highways Authority of India, opposed the petitions. The Court traced the legislative history, noting that Section 105(1) of the 2013 Act initially excluded the NH Act (listed in the Fourth Schedule) from its application, but Section 105(3) required the Central Government to direct within one year that the beneficial provisions of the first three Schedules apply to such enactments. After a series of ordinances, the Removal of Difficulties Order, 2015 (2015 Order) was issued under Section 113 of the 2013 Act, explicitly extending the First, Second, and Third Schedules to all acquisitions under the Fourth Schedule enactments, including the NH Act, with effect from September 1, 2015. The 2017 Notification from the Ministry of Road Transport and Highways confirmed this position. The Court held that the 2015 Order and the 2017 Notification make it clear that the beneficial provisions of the 2013 Act apply to NH Act acquisitions. The Competent Authority must individually assess each claimant's entitlement to rehabilitation and resettlement under the Second Schedule, rather than mechanically rejecting claims based on guidelines. The Court directed the Competent Authority to reconsider the petitioners' claims in accordance with the law, applying the provisions of the 2013 Act to the facts of each case.

Headnote

A) Land Acquisition - Application of 2013 Act to NH Act - Section 105(3) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The Court examined whether the First, Second, and Third Schedules of the 2013 Act apply to acquisitions under the National Highways Act, 1956. Held that the 2015 Removal of Difficulties Order and the 2017 Notification make it clear that the beneficial provisions of the 2013 Act apply to NH Act acquisitions, and the Competent Authority must individually assess each claimant's entitlement to rehabilitation and resettlement benefits under the Second Schedule. (Paras 2-10)

B) Land Acquisition - Rehabilitation and Resettlement - Second Schedule of 2013 Act - The Court held that the Competent Authority under the NH Act cannot mechanically reject claims for rehabilitation and resettlement by relying on a Manual of Guidelines; instead, it must apply its mind to the facts of each case and determine entitlement under the Second Schedule of the 2013 Act. (Paras 3-4, 10)

C) Land Acquisition - Removal of Difficulties Order - Section 113 of 2013 Act - The 2015 Order under Section 113 of the 2013 Act extended the application of the First, Second, and Third Schedules to enactments in the Fourth Schedule, including the NH Act, with effect from September 1, 2015, to ensure uniformity of treatment to landowners. (Paras 7-8)

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Issue of Consideration

Whether, and how, the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 apply to determination of compensation, provision of rehabilitation and resettlement, and making available infrastructure amenities in cases of land acquisition under the National Highways Act, 1956.

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Final Decision

The Court allowed the writ petitions and directed the Competent Authority under the NH Act to reconsider the petitioners' claims for rehabilitation and resettlement benefits under the Second Schedule of the 2013 Act, applying the provisions of the 2013 Act to the facts of each case, and not mechanically relying on any Manual of Guidelines.

Law Points

  • Application of 2013 Act to NH Act
  • Rehabilitation and Resettlement Entitlements
  • Removal of Difficulties Order
  • Section 105(3) of 2013 Act
  • 2017 Notification
  • Individual Assessment Required
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Case Details

2024 LawText (BOM) (10) 256

Writ Petition No.15282 of 2022 with connected matters

2024-10-25

G. S. Kulkarni, Somasekhar Sundaresan

2024:BHC-AS:42749-DB

Dr. Ramdas Sabban, Ms. Arundhati Sabban, Mr. Pravin Sabban, Mr. Shrikant Kompelli (for Petitioners); Mr. Kedar Dighe, Ms. P.N. Diwan (for State); Mr. Ashutosh Misra (for UOI); Ms. Riya Jariwal, Mr. Adesh Jadhav (for NHAI)

Roshanbi Aziz Motiwala, Chandrashekhar Basalingappa Barbade (decd. through L.Rs.), Shantinagar Zopadpattidharak Sangh, Suresh Baburao Madhekar (decd. through L.Rs.), Balu Santu Allati & Ors., Narayan Sakharam Vishwasrao & Ors.

Union of India through Secretary, Ministry of Road Transport and Highways & Ors.; Competent Authority for NHAI and Special Land Acquisition & Ors.

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Nature of Litigation

Writ petitions challenging mechanical rejection of claims for rehabilitation and resettlement benefits under the 2013 Act in land acquisition proceedings under the NH Act.

Remedy Sought

Petitioners sought directions to the Competent Authority to apply the provisions of the First, Second, and Third Schedules of the 2013 Act to their land acquisitions under the NH Act and to grant them the corresponding benefits.

Filing Reason

The Competent Authority rejected the petitioners' requests for rehabilitation and resettlement entitlements under the Second Schedule of the 2013 Act in a mechanical manner, relying on a Manual of Guidelines instead of objectively applying the substantive provisions of the 2013 Act.

Issues

Whether the provisions of the First, Second, and Third Schedules of the 2013 Act apply to land acquisition under the NH Act. Whether the Competent Authority under the NH Act must individually assess each claimant's entitlement to rehabilitation and resettlement benefits under the Second Schedule of the 2013 Act.

Submissions/Arguments

Petitioners argued that the 2015 Removal of Difficulties Order and the 2017 Notification make it clear that the beneficial provisions of the 2013 Act apply to NH Act acquisitions, and the Competent Authority must apply its mind to the facts of each case. Respondents opposed the petitions, but the Court found that the law clearly supports the petitioners' position.

Ratio Decidendi

The provisions of the First, Second, and Third Schedules of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 apply to land acquisition under the National Highways Act, 1956, by virtue of the Removal of Difficulties Order, 2015 and the 2017 Notification. The Competent Authority must individually assess each claimant's entitlement to rehabilitation and resettlement benefits under the Second Schedule, rather than mechanically rejecting claims based on guidelines.

Judgment Excerpts

This is a batch of Writ Petitions that involve a singular and common question of law – whether, and how, the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (“2013 Act”) would apply to determination of compensation, provision of rehabilitation and resettlement and making available infrastructure amenities in cases of land acquisition under the National Highways Act, 1956 (“NH Act”). The case of the Petitioners is that while the law is clear that the entitlements to rehabilitation and resettlement under the Second Schedule of the 2013 Act would be available over and above the monetary compensation under the First Schedule of the 2013 Act even to cases of land acquisition under the NH Act, their grievance is that their requests for entitlements under the Second Schedule have been rejected in a mechanical manner, purporting to reply on a Manual of Guidelines, instead of an objective application of the substantive provisions of the relevant schedules of the 2013 Act to the facts relating to the Petitioners requests.

Procedural History

The writ petitions were filed in 2022 and 2024 challenging the rejection of claims for rehabilitation and resettlement benefits. The Court heard the matters on September 29, 2024, and pronounced judgment on October 25, 2024.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 105(1), Section 105(3), Section 113, First Schedule, Second Schedule, Third Schedule, Fourth Schedule
  • National Highways Act, 1956: Section 3
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