High Court Quashes Endorsement Denying Compensation in Land Acquisition for National Highway — Payment Cannot Be Withheld Due to Title Dispute After Vesting. Competent Authority Must Deposit Disputed Amount Before Court Under Section 3G(5) of National Highways Act, 1956, Not Refuse Payment.

High Court: Karnataka High Court Bench: KALABURAGI 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). The endorsements 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 there was a dispute regarding title to the property. The petitioner had purchased the land under a registered sale deed dated 18.05.2015, and the land was acquired for the purpose of National Highway No.13. The petitioner contended that the Competent Authority had no jurisdiction to decide title disputes and that the compensation ought to be paid to him or deposited before the court. The respondents argued that the title dispute was pending before the civil court and that the petitioner was not the owner. The Court analyzed Section 3G(5) of the National Highways Act, 1956, which provides that if there is any dispute as to the apportionment of compensation or as to the persons entitled to it, the Competent Authority shall refer the dispute to the court and deposit the compensation amount. The Court held that the Competent Authority cannot refuse to pay compensation altogether; it must either pay the person found entitled or deposit the amount before the court. The impugned endorsements were quashed, and the Competent Authority was directed to either pay compensation to the petitioner or deposit it before the jurisdictional court within four weeks. The writ petition was allowed.

Headnote

A) Land Acquisition - Compensation - Withholding Payment - Section 3G(5) of National Highways Act, 1956 - The Competent Authority refused to pay compensation to the landowner citing a title dispute. The Court held that once the land vests in the National Highway Authority, the Competent Authority cannot withhold compensation; it must either pay the person entitled or deposit the amount before the court under Section 3G(5) of the Act. The endorsements denying payment were quashed. (Paras 1-8)

B) Constitutional Law - Writ Jurisdiction - Certiorari - Articles 226 & 227 of Constitution of India - The Court exercised its writ jurisdiction to quash the impugned endorsements issued by the Competent Authority, as they were based on an erroneous interpretation of law and caused injustice to the petitioner. (Paras 1, 8)

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Issue of Consideration

Whether the Competent Authority can refuse to pay compensation to the landowner on the ground that there is a dispute regarding title to the acquired land, after the land has vested in the National Highway Authority of India.

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Final Decision

Writ petition allowed. Impugned endorsements dated 20.05.2022 and 20.09.2022 quashed. Competent Authority directed to either pay compensation to petitioner or deposit it before jurisdictional court within four weeks.

Law Points

  • Land acquisition compensation cannot be withheld due to title dispute after vesting
  • Competent Authority must deposit disputed amount before court under Section 3G(5) of National Highways Act
  • 1956
  • Writ of certiorari lies against erroneous administrative endorsements
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Case Details

2023 LawText (KAR) (01) 28

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

2023-01-06

N.S.Sanjay Gowda

Mallikarjunswamy B.Hiremath for petitioner, Vinayak S. Kulkarni 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 on ground of title dispute.

Remedy Sought

Quashing of endorsements dated 20.05.2022 and 20.09.2022 and direction to pay compensation.

Filing Reason

Competent Authority refused to pay compensation citing title dispute.

Issues

Whether the Competent Authority can refuse to pay compensation on the ground of title dispute after land vests in the National Highway Authority. Whether the Competent Authority is bound to deposit the disputed compensation amount before the court under Section 3G(5) of the National Highways Act, 1956.

Submissions/Arguments

Petitioner argued that he is the owner by registered sale deed and the Competent Authority cannot decide title; compensation must be paid or deposited. Respondents argued that there is a title dispute pending before civil court and petitioner is not the owner.

Ratio Decidendi

Under Section 3G(5) of the National Highways Act, 1956, if there is a dispute as to the apportionment of compensation or persons entitled, the Competent Authority shall refer the dispute to the court and deposit the compensation amount; it cannot refuse to pay compensation altogether.

Judgment Excerpts

The Competent Authority cannot refuse to pay compensation on the ground that there is a dispute regarding title. If there is any dispute as to the apportionment of the compensation or as to the persons entitled to compensation, the Competent Authority is required to refer the dispute to the court and deposit the compensation amount.

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 & Competent Authority, National Highway Authority of India. The petition was heard and reserved for orders, and pronounced on 06.01.2023.

Acts & Sections

  • National Highways Act, 1956: Section 3G(5)
  • Constitution of India: Articles 226, 227
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