National Highways Act – Section 3D – Relevant date for Interest on enhanced compensation
Judgment dated 6.9.2024 of the Bombay High Court in Writ Petition No.14902 of 2023 of National Highways Authority of India Vs. Champalal Najlya Pawara and others with connected matters.
On 17.8.2012, the Notification under Section 3A of NHA, 1956, was issued for acquisition of the lands of the petitioners from Shirpur Taluka District Dhule.
On 10.07.2013, the Notification under Section 3D was issued.
On 3.5.2014, the Award was passed under Section 3G. Compensation was disbursed to the landowners.
On 23.4.2019, the Arbitral Award for enhancing the compensation was passed.
The respondents claimed interest on enhanced compensation from the date of declaration i.e. 10.7.2013 under Section 3D of the Act till date of actual deposit.
According to the NHAI, the interest on enhanced compensation has to be from the date of taking actual possession at the time of disbursement of compensation on 19.6.2014.
Sections 3D, 3H(1) and (5) indicate that the interest has to be paid from “the date of taking possession under Section 3D”
In this case, the possession was taken at the time of disbursement of compensation under Section 3G. In other words, the possession was not taken on the date of Section 3D notification.
HELD that on the date of Section 3D Notification, the land has absolutely vested with the Central Government under Section 3D(2) of NHA free from all encumbrances and the Central Government has right to enter into and to do construction. Therefore, the interest on the enhanced compensation is liable to be paid from the said date even if the physical possession was taken subsequently at the time of disbursement of the initial compensation.
