Case Note & Summary
The petitioners, Bajranglal Vyankatlal Malu and Lalchand Vyankatlal Malu, were owners of lands acquired for the construction of National Highway No.7. The Deputy Collector (Land Acquisition) passed an award on 31st October 2012 determining the compensation payable. On 21st July 2014, the Deputy Collector issued a notice under Section 3H of the National Highways Act, 1956 calling upon the petitioners to receive the compensation amount. On 1st March 2017, the petitioners filed an application under Section 3G(5) of the Act before respondent No.4 (Additional Commissioner) seeking redetermination of compensation. The Additional Commissioner dismissed the application as barred by limitation, holding that the application should have been made within 90 days of receipt of the notice under Section 3H. The petitioners challenged this order by way of a writ petition. The High Court considered the issue of limitation. The petitioners argued that under Section 3G(6) of the Act, the provisions of the Arbitration and Conciliation Act, 1996 apply, and Section 43 of that Act makes the Limitation Act, 1963 applicable to arbitrations. They contended that the limitation period for an application under Section 3G(5) should be computed from the date of knowledge of the award, not from the notice under Section 3H. The court agreed, holding that the notice under Section 3H is only for payment of compensation and does not trigger the limitation period under Section 3G(5). The court found that the Additional Commissioner erred in dismissing the application on limitation grounds. The court set aside the impugned order and directed respondent No.4 to decide the application under Section 3G(5) afresh on merits, in accordance with law, after giving an opportunity of hearing to the petitioners. The writ petition was allowed.
Headnote
A) Land Acquisition - Compensation Redetermination - Limitation - Section 3G(5), 3G(6), 3H National Highways Act, 1956 read with Section 43 Arbitration and Conciliation Act, 1996 and Limitation Act, 1963 - The petitioners' lands were acquired for National Highway No.7 and an award was passed on 31.10.2012. They received notice under Section 3H on 21.07.2014 to receive compensation. They applied under Section 3G(5) on 01.03.2017 for redetermination. The Additional Commissioner dismissed the application as barred by limitation, holding that the 90-day period under Section 3G(5) started from the Section 3H notice. The High Court held that the limitation under Section 3G(5) must be computed from the date of knowledge of the award, not from the Section 3H notice, as Section 3H notice is only for payment. The court relied on the principle that limitation for challenging an award runs from knowledge of the award. The petition was allowed and the matter remitted for fresh consideration on merits. (Paras 3-8)
Issue of Consideration
Whether the limitation period for filing an application under Section 3G(5) of the National Highways Act, 1956 for redetermination of compensation commences from the date of notice under Section 3H of the Act or from the date of knowledge of the award.
Final Decision
The High Court allowed the writ petition, set aside the impugned order dated 1st March 2017, and directed respondent No.4 to decide the application under Section 3G(5) of the National Highways Act, 1956 afresh on merits, in accordance with law, after giving an opportunity of hearing to the petitioners.
Law Points
- Limitation for application under Section 3G(5) of National Highways Act
- 1956 starts from date of knowledge of award
- not from notice under Section 3H
- Section 3G(6) read with Section 43 of Arbitration and Conciliation Act
- 1996 makes Limitation Act
- 1963 applicable
- Section 3H notice is for payment
- not for triggering limitation under Section 3G(5).
Case Details
2019 LawText (BOM) (07) 201
Writ Petition No.6249/2017
Shri Y.R. Kinkhede for petitioners; Ms. Kalyani Deshpande, A.G.P. for respondent Nos.2 and 4; Shri A.A. Kathane for respondent No.3
Shri Bajranglal Vyankatlal Malu and Shri Lalchand Vyankatlal Malu
The Secretary to the Govt. of India, Ministry of Road and Transport & Highways; The Deputy Collector, Land Acquisition (General) Nagpur & Competent Authority for Acquisition of Lands for National Highways; The Project Director, National Highways No.7; The Additional Commissioner, Nagpur & Arbitrator under the National Highways Act, 1956
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Nature of Litigation
Writ petition challenging the dismissal of an application under Section 3G(5) of the National Highways Act, 1956 for redetermination of compensation on the ground of limitation.
Remedy Sought
The petitioners sought quashing of the order dated 1st March 2017 passed by respondent No.4 dismissing their application for redetermination of compensation as barred by limitation, and a direction to decide the application on merits.
Filing Reason
The petitioners' application under Section 3G(5) for redetermination of compensation was dismissed by the Additional Commissioner as barred by limitation, on the ground that it was filed beyond 90 days from the notice under Section 3H.
Previous Decisions
The Deputy Collector (Land Acquisition) passed an award on 31st October 2012 determining compensation. The petitioners received a notice under Section 3H on 21st July 2014 to receive compensation. The petitioners filed an application under Section 3G(5) on 1st March 2017, which was dismissed by the Additional Commissioner on limitation grounds.
Issues
Whether the limitation period for filing an application under Section 3G(5) of the National Highways Act, 1956 commences from the date of notice under Section 3H or from the date of knowledge of the award.
Submissions/Arguments
The petitioners argued that under Section 3G(6) read with Section 43 of the Arbitration and Conciliation Act, 1996, the Limitation Act, 1963 applies, and the limitation period should be computed from the date of knowledge of the award, not from the notice under Section 3H.
The respondents argued that the application under Section 3G(5) should have been made within 90 days of receipt of notice under Section 3H, as per the Additional Commissioner's reasoning.
Ratio Decidendi
The limitation period for filing an application under Section 3G(5) of the National Highways Act, 1956 for redetermination of compensation commences from the date of knowledge of the award, not from the date of notice under Section 3H of the Act, as the notice under Section 3H is only for payment of compensation and does not trigger the limitation period under Section 3G(5).
Judgment Excerpts
The respondent No.4 Additional Collector has recorded that the application under Section 3G(5) of the National Highways Act should have been moved within 90 days of receipt of notice from the competent Authority calling upon the petitioners to receive the amount of compensation as per Section 3H of the National Highways Act, 1956.
In view of Section 3G(6) of the Act of 1956, the provisions of Arbitration and Conciliation Act, 1996 are applicable to every arbitration under the Act of 1956 and in view of Section 43 of the Act of 1996, Limitation Act, 1963 applies to arbitrations as it applies to proceedings in Courts.
Procedural History
The Deputy Collector passed an award on 31.10.2012. On 21.07.2014, notice under Section 3H was issued to petitioners. On 01.03.2017, petitioners filed application under Section 3G(5) which was dismissed by Additional Commissioner on limitation. Petitioners filed Writ Petition No.6249/2017 challenging the dismissal. The High Court allowed the petition on 01.07.2019.
Acts & Sections
- National Highways Act, 1956: 3G(5), 3G(6), 3H
- Arbitration and Conciliation Act, 1996: 43
- Limitation Act, 1963:
