Bombay High Court Allows Writ Petition Challenging Rejection of Compensation Claim by Co-owner Under National Highways Act, 1956 — Interpretation of Section 3-H(3) and (4) Clarified. The court held that when a dispute arises regarding apportionment of compensation among co-owners, the Land Acquisition Officer must refer the matter to arbitration under Section 3-H(4) of the National Highways Act, 1956, and cannot reject the claim on the ground of disputed title.

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

The petitioner, Arun Trimbakrao Lokare, filed a writ petition under Article 226 of the Constitution of India challenging an order dated 05.01.2017 passed by the Deputy Collector (Land Acquisition Officer, Jaikwadi Scheme), Beed, rejecting his claim for a share in compensation for land acquired under the National Highways Act, 1956. The petitioner claimed that his father had purchased an undivided 1/4th share in agricultural land admeasuring 5 Acres 14 Are from survey nos. 11/1 and 10/01 of village Manjarsumba, District Beed, by a sale deed dated 17.07.1979, and mutation entry No.332 dated 28.12.1980 was made in his father's name. Subsequently, a portion of 16 Are from survey No.10/1 was acquired by the State for national highway purposes. The petitioner, as a co-owner, applied to the Land Acquisition Officer for a share in the compensation. The officer called upon respondent No.4 (another co-owner) to file his say and then rejected the petitioner's claim on the ground that the petitioner's title was not established. The High Court noted that there was no dispute about the facts and the only controversy was the interpretation of Section 3-H(3) and (4) of the Act. The court held that under Section 3-H(3), the competent authority determines the amount of compensation and the persons entitled to it. However, if there is a dispute as to the apportionment of compensation or as to the persons to whom it is payable, the authority must refer the dispute to arbitration under Section 3-H(4). The officer cannot reject the claim outright; he must refer the dispute to the Arbitrator. The impugned order was quashed and set aside, and the matter was remitted to the Land Acquisition Officer to refer the dispute to the Arbitrator under Section 3-H(4) of the Act. The writ petition was allowed.

Headnote

A) Land Acquisition - Compensation Apportionment - Section 3-H(3) and (4) National Highways Act, 1956 - Co-owner's Claim - The petitioner, claiming to be a co-owner of acquired land, applied for a share in compensation. The Land Acquisition Officer rejected the claim holding that the petitioner's title was not proved. The High Court held that under Section 3-H(3), the competent authority determines the amount of compensation and persons entitled, but if there is a dispute as to apportionment or title, the matter must be referred to arbitration under Section 3-H(4). The officer cannot reject the claim outright; he must refer the dispute to the Arbitrator. (Paras 6-10)

B) Land Acquisition - Reference to Arbitrator - Section 3-H(4) National Highways Act, 1956 - Dispute as to Apportionment - The court clarified that the word 'dispute' in Section 3-H(4) includes a dispute regarding apportionment of compensation among co-owners. The officer's rejection of the claim without referring the dispute to arbitration was illegal. The impugned order was quashed and the matter remitted to the officer to refer the dispute to the Arbitrator under Section 3-H(4). (Paras 7-10)

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Issue of Consideration

Whether the Land Acquisition Officer (respondent No.3) was justified in rejecting the petitioner's claim for a share in compensation on the ground that the petitioner's title was not established, and whether the dispute regarding apportionment of compensation among co-owners ought to have been referred to arbitration under Section 3-H(4) of the National Highways Act, 1956.

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Final Decision

The writ petition is allowed. The impugned order dated 05.01.2017 passed by the Deputy Collector (Land Acquisition Officer, Jaikwadi Scheme), Beed, is quashed and set aside. The matter is remitted to the Land Acquisition Officer to refer the dispute to the Arbitrator under Section 3-H(4) of the National Highways Act, 1956. Rule is made absolute accordingly.

Law Points

  • Interpretation of Section 3-H of National Highways Act
  • 1956
  • Distinction between Sub-Section (3) and (4)
  • Right of co-owner to claim compensation
  • Reference to Arbitrator under Section 3-H(4) only when dispute as to apportionment or title
  • No requirement of prior determination of title by civil court
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Case Details

2017 LawText (BOM) (06) 69

Writ Petition No.1949/2017

2017-06-29

S.C. Dharmadhikari, Mangesh S. Patil

Mr. Govind Kulkarni h/f Mr. Rajendra Deshmukh for petitioner, Mr. S.B. Yawalkar AGP for respondent Nos.1 to 3, Mr. R.G. Hange for respondent No.4

Arun S/o Trimbakrao Lokare

The State of Maharashtra through Secretary, Department of Urban Development, The Collector Beed, The Deputy Collector Beed (Land Acquisition Officer, Jaikwadi Scheme), Ashruba S/o Rangnath Rasal

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging an order rejecting claim for share in compensation under the National Highways Act, 1956.

Remedy Sought

The petitioner sought quashing of the order dated 05.01.2017 passed by the Deputy Collector (Land Acquisition Officer) rejecting his claim for a share in compensation, and a direction to refer the dispute to arbitration under Section 3-H(4) of the National Highways Act, 1956.

Filing Reason

The petitioner's claim for a share in compensation as a co-owner of acquired land was rejected by the Land Acquisition Officer on the ground that his title was not established.

Previous Decisions

The Land Acquisition Officer rejected the petitioner's claim by order dated 05.01.2017, which is impugned in the petition.

Issues

Whether the Land Acquisition Officer was justified in rejecting the petitioner's claim for a share in compensation on the ground of disputed title without referring the dispute to arbitration under Section 3-H(4) of the National Highways Act, 1956. What is the correct interpretation and distinction between Sub-Section (3) and (4) of Section 3-H of the National Highways Act, 1956?

Submissions/Arguments

The petitioner argued that being a co-owner, he is entitled to a share in compensation and the officer ought to have referred the dispute to arbitration under Section 3-H(4) instead of rejecting the claim. The respondents (State and respondent No.4) did not dispute the facts but contended that the petitioner's title was not established and the officer's order was correct.

Ratio Decidendi

Under Section 3-H(3) of the National Highways Act, 1956, the competent authority determines the amount of compensation and the persons entitled to it. However, if there is a dispute as to the apportionment of compensation or as to the persons to whom it is payable, the authority must refer the dispute to arbitration under Section 3-H(4). The officer cannot reject the claim of a co-owner on the ground of disputed title; he must refer the dispute to the Arbitrator.

Judgment Excerpts

Interpretation of the provisions of Section 3-H of the National Highways Act, 1956, and particularly interpretation and distinction between Sub Section (3) and (4) of Section 3-H apparently is in dispute in this writ petition. The whole controversy therefore, revolves around the interpretation and distinction between Sub-Section (3) and (4) of Section 3-H of the Act. Under Sub-Section (3), the competent authority determines the amount of compensation and the persons entitled to it. However, if there is a dispute as to the apportionment of compensation or as to the persons to whom it is payable, the authority must refer the dispute to arbitration under Sub-Section (4).

Procedural History

The petitioner's father purchased an undivided 1/4th share in land in 1979. A portion of the land was acquired under the National Highways Act. The petitioner applied for a share in compensation on 30.01.2016. The Land Acquisition Officer called respondent No.4 and rejected the claim on 05.01.2017. The petitioner filed the present writ petition on an unspecified date. The petition was heard and reserved on 12.06.2017, and judgment was pronounced on 29.06.2017.

Acts & Sections

  • National Highways Act, 1956: Section 3-H(3), Section 3-H(4)
  • Constitution of India: Article 226
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