High Court Quashes Land Acquisition Compensation Denial Endorsements for Lack of Hearing and Proper Notice Under National Highways Act, 1956. The Court held that denial of compensation without notice under Section 3G(7) of the National Highways Act, 1956 and without opportunity of hearing is arbitrary and violative of natural justice.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
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Case Note & Summary

The petitioner, T. Younis @ Unees, a landowner, challenged two endorsements dated 20.05.2022 and 20.09.2022 issued by the Special Land Acquisition Officer & Competent Authority, National Highway Authority of India (first respondent). By these endorsements, the Competent Authority informed the petitioner that payment of compensation for his acquired lands in Sy.Nos.503/A2 and 503/B2 of Amaravati Village, Hospet Taluk could not be made because the land was not acquired. The petitioner sought a writ of certiorari to quash these endorsements. The Court noted that the Competent Authority had not issued any notice under Section 3G(7) of the National Highways Act, 1956 to the petitioner before passing the endorsements. The Court held that the denial of compensation without affording an opportunity of hearing and without following the mandatory notice requirement under Section 3G(7) was arbitrary and violative of principles of natural justice. Consequently, the Court quashed the impugned endorsements and directed the Competent Authority to issue notice to the petitioner, hear him, and pass fresh orders in accordance with law within three months. The writ petition was allowed.

Headnote

A) Land Acquisition - Compensation Denial - Right to Hearing - Section 3G(7) of the National Highways Act, 1956 - The Competent Authority denied compensation to the petitioner on the ground that the land was not acquired, but the petitioner was not issued any notice under Section 3G(7) nor given an opportunity of hearing before passing the endorsements. The Court held that the denial of compensation without notice and hearing is arbitrary and violative of principles of natural justice. (Paras 1-5)

B) Land Acquisition - Compensation Determination - Notice Requirement - Section 3G(7) of the National Highways Act, 1956 - The Court held that Section 3G(7) mandates that the Competent Authority must issue notice to persons interested before determining the amount of compensation. The endorsements denying compensation without such notice are unsustainable. (Paras 3-5)

C) Constitutional Law - Writ Jurisdiction - Certiorari - Articles 226 and 227 of the Constitution of India - The Court exercised its writ jurisdiction to quash the impugned endorsements as they were passed without jurisdiction and in violation of natural justice. (Paras 1, 5)

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Issue of Consideration

Whether the Competent Authority can deny payment of compensation to a landowner without issuing a notice under Section 3G(7) of the National Highways Act, 1956 and without affording an opportunity of hearing.

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Final Decision

The writ petition is allowed. The impugned endorsements dated 20.05.2022 and 20.09.2022 (Annexures-F and F1) are quashed. The Competent Authority is directed to issue notice to the petitioner, afford an opportunity of hearing, and pass fresh orders in accordance with law within three months from the date of receipt of a copy of this order.

Law Points

  • Right to be heard before denial of compensation
  • Mandatory notice under Section 3G(7) of National Highways Act
  • 1956
  • Writ of certiorari against administrative endorsements
  • Compensation determination under National Highways Act
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Case Details

2023 LawText (KAR) (01) 23

Writ Petition No.104106/2022 (LA-RES)

2023-01-06

N.S.Sanjay Gowda

Mallikarjunswamy B.Hiremath (for petitioner), Vinayak S. Kulkarni (AGA for R1), Shilppa Shah for Shivaraj Ballolli (for R2)

T. Younis @ Unees

Special Land Acquisition Officer & The Competent Authority, National Highway Authority of India, and National Highway Authority of India

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Nature of Litigation

Writ petition challenging endorsements denying compensation for acquired land.

Remedy Sought

Petitioner sought a writ of certiorari to quash the impugned endorsements dated 20.05.2022 and 20.09.2022.

Filing Reason

The Competent Authority denied payment of compensation for the petitioner's acquired lands on the ground that the land was not acquired, without issuing notice or affording hearing.

Issues

Whether the Competent Authority can deny compensation without issuing notice under Section 3G(7) of the National Highways Act, 1956? Whether the impugned endorsements are violative of principles of natural justice?

Submissions/Arguments

Petitioner argued that the endorsements were arbitrary and without jurisdiction as no notice was issued under Section 3G(7) of the National Highways Act, 1956. Respondents argued that the land was not acquired and hence compensation was not payable.

Ratio Decidendi

The Competent Authority cannot deny compensation to a landowner without issuing a notice under Section 3G(7) of the National Highways Act, 1956 and without affording an opportunity of hearing. Such denial is arbitrary and violative of principles of natural justice.

Judgment Excerpts

Two endorsements issued by the Special Land Acquisition Officer ... dated 20.05.2022 and 20.09.2022 ... are challenged in this writ petition by the landowner. The Competent Authority ... has informed the petitioner that the payment of the compensation ... cannot be made because the land was not acquired. It is not in dispute that before issuing the impugned endorsements, no notice was issued to the petitioner as contemplated under Section 3G(7) of the National Highways Act, 1956. The denial of compensation without affording an opportunity of hearing to the petitioner is arbitrary and violative of principles of natural justice.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India challenging two endorsements dated 20.05.2022 and 20.09.2022 issued by the Special Land Acquisition Officer. The petition was heard and reserved for orders, and pronounced on 06.01.2023.

Acts & Sections

  • National Highways Act, 1956: Section 3G(7)
  • Constitution of India: Articles 226, 227
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