UNION OF INDIA Vs. TARSEM SINGH

JUDGEMENT

(1.) Leave granted.

(2.) A batch of appeals before us by the Union of India question the view of the Punjab and Haryana High Court which is that the non-grant of solatium and interest to lands acquired under the National Highways Act, which is available if lands are acquired under the Land Acquisition Act, is bad in law, and consequently that Section 3J of the National Highways Act, 1956 be struck down as being violative of Article 14 of the Constitution of India to this extent.

(3.) The facts of one of these appeals may be taken up as illustrative of the points for consideration in all these appeals. In Union of India & Anr. v. Tarsem Singh & Ors. (Civil Appeal No. 7064 of 2019 @ SLP (C) No.9599 of 2019), a notification dated 24.12.2004 was issued under Section 3A of the National Highways Act, 1956 (hereinafter referred to as "the Act"), intending to acquire land belonging to the Respondents for the purpose of four-laning National Highway No.1-A on certain stretches of the JalandharPathankot section as well as the Pathankot-Jammu section falling within the State of Punjab. On 11th July, 2005, the said lands were declared to have vested in the State pursuant to Section 3D(2) of the said Act. On 5th October 2006, the competent authority under the Act passed an Award in which compensation was calculated at Rs.4,219/- per marla or Rs.6.75 lakhs per acre. As this Award was disputed by the Respondents, an Arbitrator was appointed under the Act, who then arrived at a figure of Rs.1.5 lakhs per marla as compensation. It is important to note that as no solatium or interest is provided by the Act, such solatium and interest was not awarded by the learned Arbitrator. Meanwhile, a Section 34 application filed under the Arbitration Act by the Union of India was dismissed on the ground that it was hopelessly time-barred. On appeal to the Division Bench of the High Court, it was found on facts that as the amount of compensation awarded was not challenged in certain cases, the National Highways Authority of India being "State" under Article 12 of the Constitution cannot be permitted to pick and choose between persons similarly situate, as a result of which the appeal against valuation at the rate of 1.5 lakhs per marla was rejected. However, the Court deleted the grant of severance and 18% interest if the awarded amount is not paid within six months, following an earlier Division Bench judgment of the same Court. The Court then went on to state that despite the fact that no appeal has been filed against the learned Single Judge's judgment by the owners, yet compensation for acquired land being in the nature of beneficial legislation, they would be bound by an earlier Division Bench judgment which requires the National Highway Authority to pay solatium and, therefore, directed payment of solatium at the rate of 30%, as laid down in the said judgment.