Bombay High Court Quashes Modified Supplementary Award in National Highway Acquisition Case — Restores Original Award Due to Lack of Notice and Violation of Natural Justice. Competent Authority Cannot Unilaterally Reduce Compensation Without Hearing Landowners Under National Highways Act, 1956.

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

The petitioners, Sangeeta Natwarlal Karwa and Natwarlal Navneetlal Karwa, owned 4 acres of land in Gat No.37/1/2 at Valsang, Solapur. For the purpose of national highway construction, the Competent Authority under the National Highways Act, 1956 passed an original award under Section 3G on 25th March 2021, determining compensation of Rs.18,89,519/- for 800 sq. mtrs. Subsequently, a notice dated 26th July 2021 was issued. However, without any notice or hearing to the petitioners, the Competent Authority passed a Modified Supplementary Award on 25th March 2021 (same date as original) and issued a fresh notice on 22nd September 2021, reducing the compensation amount. The petitioners challenged these actions by filing a writ petition under Article 226 of the Constitution of India, seeking quashing of the modified award and notice, and restoration of the original award. The respondents, including the State of Maharashtra, District Collector, Competent Authority, and National Highways Authority, opposed the petition. The court analyzed the facts and found that the Competent Authority had no power to unilaterally modify the award without giving the landowners an opportunity of being heard. The court held that the principles of natural justice were flagrantly violated. Consequently, the court quashed the Modified Supplementary Award and the impugned notice, restored the original award and notice dated 26th July 2021, and directed respondent No.4 to deposit the deficit amount of Rs.18,89,519/- within four weeks. The petition was allowed with no order as to costs.

Headnote

A) Constitutional Law - Writ Jurisdiction - Article 226 of the Constitution of India - Quashing of Modified Supplementary Award - The petitioners sought certiorari to quash the Modified Supplementary Award dated 25.03.2021 and notice dated 22.09.2021, and mandamus to restore the original award and notice. The court held that the impugned actions were violative of natural justice as no notice or hearing was given to the petitioners before reducing compensation. (Paras 1-4)

B) Land Acquisition - National Highways Act, 1956 - Sections 3G, 3H - Compensation Determination - The original award under Section 3G determined compensation at Rs.18,89,519/- for 800 sq. mtrs. The Competent Authority later issued a Modified Supplementary Award reducing the amount without any notice to the landowners. The court held that such unilateral reduction without affording an opportunity of hearing is illegal and unsustainable. (Paras 5-10)

C) Administrative Law - Principles of Natural Justice - Audi Alteram Partem - The Competent Authority's action in modifying the award without notice or hearing violated the fundamental principle of natural justice. The court restored the original award and directed the respondent No.4 to deposit the deficit amount. (Paras 11-15)

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Issue of Consideration

Whether the Competent Authority could unilaterally modify the original award under Section 3G of the National Highways Act, 1956, reducing compensation without issuing notice or hearing the landowners, and whether such action violates principles of natural justice.

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Final Decision

The court allowed the petition, quashed the Modified Supplementary Award dated 25.03.2021 and the notice dated 22.09.2021, restored the original award dated 25.03.2021 and notice dated 26.07.2021, and directed respondent No.4 to deposit the deficit amount of Rs.18,89,519/- within four weeks. No order as to costs.

Law Points

  • Natural justice
  • Right to be heard
  • Compensation determination
  • National Highways Act
  • 1956
  • Section 3G
  • Section 3H
  • Writ jurisdiction
  • Article 226
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Case Details

2023 LawText (BOM) (01) 73

WRIT PETITION NO.5327 OF 2022

2023-02-28

R.D. Dhanuka, M.M. Sathaye

Mr.Manoj A. Patil for the Petitioners, Mr.V.S. Gokhale “B” Panel Counsel for the Respondent Nos.1 to 3, Mr.Chandan Athani i/b Mr.Siddharth Ambegaonkar / Hinge and Deshmukh Associates for the Respondent No.4

Sau.Sangeeta Natwarlal Karwa and Shri Natwarlal Navneetlal Karwa

State of Maharashtra, District Collector Solapur, Competent Authority @ Deputy Collector (Land Acquisition) No.1 Solapur, Project Director National Highways Authority Solapur

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the Modified Supplementary Award and notice issued under the National Highways Act, 1956.

Remedy Sought

Quashing of Modified Supplementary Award dated 25.03.2021 and notice dated 22.09.2021; restoration of original award and notice; direction to respondent No.4 to deposit deficit award amount of Rs.18,89,519/-.

Filing Reason

The Competent Authority unilaterally reduced the compensation amount without notice or hearing to the petitioners, violating principles of natural justice.

Previous Decisions

Original award under Section 3G dated 25.03.2021 and notice dated 26.07.2021 were passed; subsequently Modified Supplementary Award and fresh notice were issued.

Issues

Whether the Competent Authority could modify the original award without notice or hearing to the landowners? Whether the impugned Modified Supplementary Award and notice are violative of principles of natural justice?

Submissions/Arguments

Petitioners argued that the Modified Supplementary Award was passed without any notice or opportunity of hearing, and thus illegal. Respondents contended that the modification was within the authority's power and no hearing was required.

Ratio Decidendi

The Competent Authority under the National Highways Act, 1956 cannot unilaterally modify an award reducing compensation without affording the landowners an opportunity of hearing, as such action violates the principles of natural justice. The original award stands restored.

Judgment Excerpts

By this Petition filed under Article 226 of the Constitution of India, the Petitioners have prayed for a writ of certiorari for quashing and setting aside the impugned Modified Supplementary Award dated 25th March, 2021... The Petitioners also prayed for a declaration and direction against the Competent Authority to restore and confirm the Award dated 25th March, 2021 under Section 3(G) of the National Highways Act, 1956...

Procedural History

The original award under Section 3G was passed on 25.03.2021. A notice dated 26.07.2021 was issued. Subsequently, a Modified Supplementary Award dated 25.03.2021 and a notice dated 22.09.2021 were issued without notice to the petitioners. The petitioners filed the present writ petition on an unspecified date, which was heard and finally disposed of on 28.02.2023.

Acts & Sections

  • National Highways Act, 1956: 3(G), 3(H), 3(E)
  • Constitution of India: Article 226
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