Case Note & Summary
The petitioners, owners of shops and properties in Solapur, challenged the award of compensation dated 31st December 2021 passed by the Competent Authority and Deputy Collector (Land Acquisition) under Section 3G(2) of the National Highways Act, 1956 for acquisition of their land for the National Highway project. The petitioners contended that the Competent Authority determined the compensation without issuing any notice to them and without providing an opportunity of hearing, thereby violating principles of natural justice. The respondents, including the Competent Authority and NHAI, argued that the procedure under the National Highways Act does not mandate a notice or hearing before determination of compensation. The court analyzed the provisions of the National Highways Act, 1956, particularly Sections 3G(2), 3H, and 3J, and held that the principles of natural justice are implicit in the determination of compensation as it affects the rights of the persons interested. The court observed that the Competent Authority must issue notice and give an opportunity of hearing to the persons interested before determining compensation. Since the impugned award was passed without following such procedure, it was set aside. The court directed the Competent Authority to issue notice to the petitioners, hear them, and pass a fresh award within a specified period. The petitions were allowed with no order as to costs.
Headnote
A) Constitutional Law - Principles of Natural Justice - Right to Hearing - Section 3G(2) of the National Highways Act, 1956 - The court considered whether the Competent Authority can determine compensation without issuing notice and providing an opportunity of hearing to the persons interested. Held that the principles of natural justice require that before determining compensation, the authority must issue notice and give an opportunity of hearing to the persons interested, as the determination affects their rights. (Paras 1-20) B) Land Acquisition - Compensation Determination - Notice Requirement - Section 3G(2) of the National Highways Act, 1956 - The court examined the procedure for determination of compensation under the National Highways Act, 1956. Held that the Competent Authority must follow the principles of natural justice and issue notice to the persons interested before determining compensation, and failure to do so renders the award invalid. (Paras 1-20) C) Land Acquisition - Applicability of Land Acquisition Act, 1894 - Section 3J of the National Highways Act, 1956 - The court noted that Section 3J of the National Highways Act, 1956 makes certain provisions of the Land Acquisition Act, 1894 applicable to proceedings under the National Highways Act. Held that the principles of natural justice are inherent in the determination of compensation and must be followed. (Paras 1-20)
Issue of Consideration
Whether the determination of compensation under Section 3G(2) of the National Highways Act, 1956 without issuing notice and providing an opportunity of hearing to the persons interested is valid in law.
Final Decision
The court allowed the writ petitions, set aside the impugned award dated 31st December 2021, and directed the Competent Authority to issue notice to the petitioners, give them an opportunity of hearing, and pass a fresh award within a specified period. No order as to costs.
Law Points
- Principles of natural justice
- Right to hearing
- Section 3G(2) of National Highways Act
- 1956
- Section 3H of National Highways Act
- Section 3J of National Highways Act
- Land Acquisition Act
- 1894
- Compensation determination
- Notice requirement
- Opportunity of hearing
