2026ArbitrationHigh CourtLatestLegalMarch 2026Real Estate

Bombay HC – NHAI acquired land – Compensation for easementary loss to petrol pump business

NHAI Act – Section 3G – Arbitral Award for acquired land confirmed by Section 34 Court – Interference by Section 37 Court

The Arbitral Tribunal had increased the price of the acquired land from Rs.595 to Rs.1190 per sq.meter and enhanced the compensation determined by the competent authority.  Section 34 District Court confirmed the said Award.

Thus, in the case of Tarsem Singh (supra), it is held that easementary right is subsumed in ownership right and that once ownership is taken over by acquisition, there cannot be separate compensation for easementary right. However, in the instant case, this court finds that frontal part of the land of the claimant is acquired and remaining part of the claimant’s land is affected as he runs the business of petrol pump. Thus, the claimant being also the adjacent land holder where he runs his petrol pump has suffered the loss of easementary right. Thus, granting 10% of loss of easementary right does not travel beyond the law as laid in the case of Tarsem Singh supra.

Judgment dated 16.3.2026 of the Division Bench of the High Court of Bombay in Arbitration Appeal No.14 of 2016 of NHAI PIU Aurangabad  Vs.   Kerman Sam Amroliwala and another with connected matter.

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