[Cites 13, Cited by 0]
Punjab-Haryana High Court
National Highways Authority Of India ... vs State Of Punjab And Others on 30 April, 2026
CWP-28269
28269-2025 (O&M) [1]
213
IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
CWP
CWP-28269-2025 (O&M)
Date of Decision: 30.04.2026
National Highways Authority of India ...Petitioner
VERSUS
State of Punjab and ors.
...Respondent
CORAM: HON'BLE MR. JUSTICE HARKESH MANUJA
Present : Mr. Rishi Kaushal, Advocate
for the petitioner.
Mr. Puru Jarewal, DAG, Punjab.
****
HARKESH MANUJA, J. (ORAL)
Reply by way of compliance report on behalf for
respondent No.2 has been filed in Court today. The same is taken on
record. Registry to tag the same at appropriate place.
Vide this common order, a bunch of 44 Civil Writ
Petitions, details of which are given in the footnote of this judgment,
Petitions,
are being decided as identical facts and question of law are involved
therein.. For the sake of brevity, facts are being taken from CWP-
CWP
28269-2025
2025.
2. The present writ petition has been filed on behalf of
National highways Authority of India through its Project Director,
(hereinafter
inafter referred to as 'the Authority'), with the following prayer
clause:-
CWP-28269
28269-2025 (O&M) [2]
"a) Issuance of a writ in the nature of certiorari for setting
aside the (Award No. 1 of 2025) Award dated
22.04.2025 (Annexure P
P-7)
7) passed by respondent
no.3 i.e. Land Acquisition Collector-cum-SDM,
SDM,
Rupnagar under Section 28A of the Land Acquisition
Act, 1894, whereby the applications of landowners for
re-determination
determination of compensation were allowed,
compensation was enhanced to Rs. 27,10,456/
27,10,456/- per
acre, and interest @ 9% per annum ffrom
rom the date of
possession till realization was granted, fastening the
entire financial liability upon the Petitioner
Petitioner-NHAI,
NHAI,
despite the acquisition having been undertaken by
PWD (B&R), Punjab, and the stretch being
transferred to NHAI only in December 2019
2019.
b) Issuance of a writ in the nature of mandamus/ writ of
Declaration declaring that the Land Acquisition
Collector had no authority or jurisdiction under
Section 28A of the Land Acquisition Act, 1894, to
grant interest from the date of possession to
landowners
owners who had not availed a reference under
Section 18 of the Land Acquisition Act, 1894.
c) Further prayer to the Hon'ble Court directing the
Petitioner-NHAI
NHAI cannot be fastened with financial
liability in respect of acquisitions undertaken by PWD
(B&R), Punjab, prior to the transfer of the Morinda
Bye-Pass
Pass stretch to NHAI vide notification dated
18.12.2019 (Annexure P
P-4) in the interest of justice;
d) With a prayer in the interim to stay the execution,
implementation, and effect of the impugned Award
dated
d 22.04.2025, (Annexure P
P-7)
7) and restrain the
respondents from taking any coercive steps against
the Petitioner-NHAI
NHAI for recovery of the amounts
directed therein."
CWP-28269
28269-2025 (O&M) [3]
3. In the present case(s), land forming part of the revenue
estate of Tehsil Morinda, District
District Rupnagar was acquired by the
Government of Punjab, Department of PWD (B&R) vide notification
dated 04.08.2000 and 09.02.2001 issued under Section 4 and 6 of
the Land Acquisition Act, 1894, (for
(for short 'the Act')) respectively, for
public purpose, namely,
na "for the construction of 4
4-laning
laning of
Chandigarh Ludhiana road including Morinda bye pass in tehsil and
Chandigarh-Ludhiana
district Rupnagar."
Rupnagar." Award under Section 11 of the 1894 Act was
passed by the Land Acquisition Collector, (for short 'the LAC') on
21.11.2002, whereby
whereby the market value was assessed @ Rs.8.10
lakhs per acre, besides grant of other statutory benefits under the
1894 Act. Aggrieved of the award passed by the LAC, the
landowners filed their objections in terms of Section 18 which were
declined by the learned
learned Reference Court vide decision dated
30.04.2008.
4. Still aggrieved, the landowners preferred RFAs which
were accepted vide order dated 27.04.2018, resulting in the matters
being remanded to the learned Reference Court for fresh
adjudication. Pursuant thereto, the learned Reference Court, vide
decision dated 31.03.2023, enhanced the compensation by
assessing the market value at ₹27,10,456/
₹27,10,456/- per acre,, besides
granting all other statutory benefits as provided under the Act.
However, in the meanwhile, the Central Government vide notification
dated 18.12.2019 issued in exercise of its powers under Section 11
CWP-28269
28269-2025 (O&M) [4]
of the National Highways Authorities of Act, 1988, (for short '1988
Act')) , entrusted the stretch of National Highway No.95 (Morinda bye
pass) to the National
tional Highways Authority of India
India.. The relevant
extract from the notification is reproduced hereunder:
hereunder:-
"NOTIFICATION
NOTIFICATION
New Delhi, the 18th December, 2019
S.O. 4529(E). In exercise of the powers conferred by
section 11 of the National Highways Authority of India Act,
1988 (68 of 1988), the Central Government hereby entrusts
the stretch of national Highways as specified in column (3) of
the Table below of the section as specified in column (2) of the
National Highways as specified in the corresponding entry in
i
column (1) of the said Table, to the National Highways
Authority of India, namely:-
TABLE
New NH Section of National Highways Length in
No. Kilometers
95 Kharar-Samrala
Samrala Chowk
Chowk-MC Limit Km. 0.000 to
Section Km 92.000
01 Bidipur-Dhilwan
Dhilwan section Km. 387.100
to Km.
(In the State of Punjab)
407.100
(F.No.NH
(F.No.NH-14013/9/2019-P&M)
RAJESH GUPTA, DY. SECY."
5. Based upon the determination made by the learned
Reference Court vide its award dated 31.03.2023, some of the
landowners who did not avail their remedies under Section 18 of
1894 Act, preferred application under Section 28
28-A
A of the 1894 Act,
for re-determi
determination
nation of compensation on parity basis. The said
CWP-28269
28269-2025 (O&M) [5]
applications preferred under Section 28
28-A
A of the Act were allowed by
the LAC vide decision dated 22.04.2025 (P
(P-7)
7) and the liability to pay
the enhanced amount of compensation was fastened upon the NHAI.
Parass 13 and 14, being relevant are reproduced hereunder:
hereunder:-
13. Question of Financial Liability
Liability: The financial
liability of this award will be borne by NHAI since the
stretch of Morinda bye--pass
pass has been taken over by
NHAI vide notification S.O. no.4528 (E) d
dated
ated
18.12.2019 from Department of Public Works,
Government of Punjab, (attached as Annexure
B) Furthermore, the letter number 194
194-196
196 dated
28/05/2024 issued by Superintending Engineer, PWD
(B&R) Ludhiana which was endorsed to office of the
undersigned as well clearly states in para 4 that the
acquired land along with constructed road (Morinda Bye-
Bye
pass) has now been handed over to NHAI (attached as
annexure C). Therefore, the interest from the date of
issue of notification of acquisition under section 4 of the
Land Acquisition Act 1894 (that is 04.08.2000) till final
realization along with the absolute enhancement minus
the amount already paid to the applicant under section
31 of Land Acquisition Act, 1894 shall be borne by
NHAI, The calculation sheet be prepared accordingly
and sent to the NHAI along with its order.
14. The said enhanced calculated amount shall be
deposited by the NHAI and the same be released to the
applicants after establishing the eligibility of the
applicants obtaining adequate sur
surety
ety bonds/indemnity
bonds duly attested by the Executive Magistrate.
It is clearly stated here that if the land
owner/applicant/claimant has died during the course of
trial or before filing case under section 28
28-A
A of the Land
CWP-28269
28269-2025 (O&M) [6]
Acquisition Act, 1894 and iis
s so verified by a valid death
certificate issued by competent authority, the legal heirs
shall be given compensation subject to production of a
valid legal heir certificate from civil court and attested
Kursinama which is counter signed by the Patwari and
Nambardar for rural areas and Municipal Councilor/
Executive Officer, Municipal Council for urban areas."
6. The main grievance raised on behalf of the petitioner in
the present petition(s) is that the liability to pay enhanced amount of
compensation in terms of decision dated 22.04.2025, passed by the
LAC-cum
cum-SDM
SDM in exercise of powers under Section 28
28-A
A of the 1894
Act could not be fastened upon the petitioner
petitioner-NHAI.
NHAI. It has been
submitted that since at the time of commencement of the process for
acquisition
ion of the subject land in the year 2000, the process was
initiated by the State Government,
Government, as such the liability to pay
compensation under the provisions of 1894 Act was upon the State
Government and not the NHAI. Learned counsel further submits that
in the absence of any liability transfer document having been
produced by the State Government despite specific instructions
issued vide order dated 06.03.2026, liberty may be granted to NHAI
to avail its remedies, in terms of Section 12(2) of the National
Highway
ghway Act, 1988.
7. Per contra, ld. Counsel for the respondents contends that
at the time of filing of application under Section 28
28-A,
A, the stretch of
National Highway no. 95 already stood entrusted to the petitioner-
petitioner
CWP-28269
28269-2025 (O&M) [7]
National Highway Authority, thus the ld. LAC
LAC-cum-SDM
SDM was right in
fastening the liability to pay enhanced compensation upon the
petitioner and thus the award passed by it calls for no interference.
DISCUSSION AND REASONING
8. I have heard learned counsel for the parties at length and
have perused the paper-book
paper book with their assistance. For the purpose
of adjudicating the controversy involved in the present case, it is
apposite to refer to Section 2 of the 1956 Act, which stipulates that
the highways specified in the Schedule are deemed to be National
Highways. The provision further empowers the Central Government
to include additional highways in, or omit existing highways from, the
Schedule by issuing notifications in the Official Gazette. The same is
reproduced hereunder:
"2. Declaration of certain highways to be national
highways.--
(1) Each of the highways specified in the Schedule 2 is
hereby declared to be a national highway.
(2) The Central Government may, by notification in the
Official Gazette, declare any other highway to be a
national highway and on the publication of such
notification such highway shall be deemed to be
specified in the Schedule.
(3) The Central Government m
may,
ay, by like notification, omit
any highway from the Schedule and on the publication
of such notification, the highway so omitted shall cease
to be a national highway."
8.1 A perusal of the said Schedule appended to the 1956 Act
CWP-28269
28269-2025 (O&M) [8]
further reveals that the highway in question stood notified as National
Highway No. 95 vide notification No. S.O. 251(E) dated 27th
February, 2002. Consequently, by virtue of such notification and the
statutory scheme, the said highway stood vested in the Central
Government.
9. Furthermore, in so far as the dispute regarding payment
of enhanced amount of compensation is concerned, reference need
to be made to Section 11 and 12 of the National Highway Act ,1988
which read as under:
"11. Power of the Central Government to vest or
entrust any national highway in the Authority.--
--
The Central Government may, from time to
time, by notification in the Official Gazette, vest
in, or entrust to, the Authority, such national
highway or any stretch thereof as may be
specified in such notifica
notification.
12. Transfer of assets and liabilities of the Central
Government to the Authority.
Authority.--
(1) On and from the date of publication of the
notification under section 11,
11,--
(a) all debts, obligations and liabilities incurred, all
contracts entered into and a
allll matters and
things engaged to be done by, with, or for, the
Central Government, immediately before such
date for or in connection with the purposes of
any national highway or any stretch thereof
vested in, or entrusted to, the Authority under
that section,
on, shall be deemed to have been
incurred, entered into and engaged to be done
by, with, or for, the Authority;
CWP-28269
28269-2025 (O&M) [9]
(b) all non-recurring
recurring expenditure incurred by or for
the Central Government for or in connection
with the purposes of any national highway or
any
ny stretch thereof, so vested in, or entrusted
to, the Authority, up to such date and declared
to be capital expenditure by the Central
Government shall, subject to such terms and
conditions as may be prescribed, be treated as
capital provided by the Centr
Central
al Government to
the Authority;
(c) all sums of money due to the Central
Government in relation to any national highway
or any stretch thereof, so vested in, or
entrusted to, the Authority immediately before
such date shall be deemed to be due to the
Authority;
ority; (d) all suits and other legal
proceedings instituted or which could have
been instituted by or against the Central
Government immediately before such date for
any matter in relation to such national highway
or any stretch thereof may be continued or
instituted by or against the Authority.
(2) If any dispute arises as to which of the assets,
rights or liabilities of the Central Government
have been transferred to the Authority, such
dispute shall be decided by the Central
Government."
9.1 A conjoint
conjoint reading of the aforesaid provisions makes it
evident that upon issuance of a notification under Section 11, all
assets, liabilities, obligations and pending proceedings in relation to
the concerned National Highway stand vested in, or entrusted to, the
t
CWP-28269
28269-2025 (O&M) [10]
National Highways Authority of India.
10. In the present case, the Central government vide notification
dated 18.12.2019 entrusted NH NO.95 to the petitioner
petitioner-NHAI.
NHAI.
Consequently, by operation of Section 12(1), all rights, liabilities and
proceedings pertaining thereto stood transferred to the Authority. At
proceedings
the same time, Section 12(2) envisages that any inter se dispute as
to the extent of such transfer is to be resolved by the Central
Government. Be that as it may, the liability to ensure paymen
paymentt of the
enhanced compensation, as determined in accordance with law,
cannot be permitted to remain in abeyance. It is also not disputed
that the respective Competent Authorities for Land Acquisition
(CALAs) have already forwarded the requisite calculation
calculations,
s, in terms
of the award passed under Section 28
28-A
A of the 1894, to the Authority
in the second week of April, 2026.
11. In view of the above, the present petitions are disposed of
with a direction to the petitioner-NHAI
petitioner NHAI to deposit the amount of
compensation
pensation with the respective CALAs. The needful be done within
a period of six weeks from today. Upon such deposit, the respective
CALAs shall ensure disbursement of the amount to the landowners,
strictly in terms of the award passed under Section 28
28-A of the Act,
within a further period of four weeks thereafter. However, the
petitioner NHAI shall be at liberty to avail its remedies, in accordance
petitioner-NHAI
with law, subject to the proof of any document or agreement
demonstrating transfer or allocation of liability, executed inter se the
CWP-28269
28269-2025 (O&M) [11]
parties to the dispute herein.
12.. Pending miscellaneous application(s), if any, shall also stand
disposed of.
30.04.2026 ( HARKESH MANUJA)
sanjay JUDGE
Whether speaking/reasoned ? Yes/No
Whether Reportable ? Yes/No
Sr.No. Case No.
1. CWP-28272
28272-2025 (O&M)
2. CWP-28274
28274-2025 (O&M)
3. CWP-28276
28276-2025 (O&M)
4. CWP-28279
28279-2025 (O&M)
5. CWP-28281
28281-2025 (O&M)
6. CWP-28282
28282-2025 (O&M)
7. CWP-28285
28285-2025 (O&M)
8. CWP-28286
28286-2025 (O&M)
9. CWP-28289
28289-2025 (O&M)
10. CWP-31879
31879-2025 (O&M)
11. CWP-31881
31881-2025 (O&M)
12. CWP-31889
31889-2025 (O&M)
13. CWP-31892
31892-2025 (O&M)
14. CWP-31897
31897-2025 (O&M)
15. CWP-31898
31898-2025 (O&M)
16. CWP-31906
31906-2025 (O&M)
17. CWP-31907
31907-2025 (O&M)
18. CWP-31910
31910-2025 (O&M)
19. CWP-31918
31918-2025 (O&M)
20. CWP-31928
31928-2025 (O&M)
21. CWP-31937
31937-2025 (O&M)
22. CWP-31938
31938-2025 (O&M)
23. CWP-31941
31941-2025 (O&M)
24. CWP-31954
31954-2025 (O&M)
25. CWP-31961
31961-2025 (O&M)
26. CWP-31964
31964-2025 (O&M)
27. CWP-31973
31973-2025 (O&M)
28. CWP-31977
31977-2025 (O&M)
29. CWP-31985
31985-2025 (O&M)
30. CWP-31992
31992-2025 (O&M)
CWP-28269
28269-2025 (O&M) [12]
31. CWP-32019
32019-2025 (O&M)
32. CWP-32024
32024-2025 (O&M)
33. CWP-32026
32026-2025 (O&M)
34. CWP-32036
32036-2025 (O&M)
35. CWP-32053
32053-2025 (O&M)
36. CWP-32054
32054-2025 (O&M)
37. CWP-397
39718-2025 (O&M)
38. CWP-32072
32072-2025 (O&M)
39. CWP-32073
32073-2025 (O&M)
40. CWP-32074
32074-2025 (O&M)
41. CWP-32151
32151-2025 (O&M)
42. CWP-32334
32334-2025 (O&M)
43. CWP-32836
32836-2025 (O&M)
30.04.2026
.2026 (HARKESH MANUJA)
sanjay JUDGE
