SC questions Highways Act, says bureaucrats should not decide compensation

The top court said determining compensation for acquired land is a judicial function and welcomed the Centre's proposal to amend the National Highways Act

The Supreme Court on Thursday questioned the mechanism under the National Highways Act, 1956, that entrusts government-appointed bureaucrats with deciding disputes over compensation for acquired land, observing that such issues involve a judicial function and should ordinarily be decided by a judicially trained forum.

 

A Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohan noted that, unlike the framework governing other land acquisition laws, the National Highways Act does not provide for adjudication of compensation disputes by a judicial authority.

 

"The procedure under the principal land acquisition law ensures that the determination of compensation, which is purely a judicial exercise, is undertaken by a judicially trained mind. This is the only enactment where an exception has been carved out and bureaucrats have been vested with this role. Prima facie, that is not acceptable to us," the Bench observed.

 

The Court said the present framework appeared to place landowners at a systemic disadvantage in proceedings under the National Highways Act. It also noted that properties situated along national highways generally have greater market value, making fair determination of compensation particularly significant.

 

During the hearing, Chief Justice Kant remarked that the Supreme Court had previously been required to intervene in cases where landowners were denied statutory benefits such as solatium and interest under the National Highways Act.

 

"Under the ordinary land acquisition law, although the Land Acquisition Collector is a civil servant, there is a judicial forum where compensation can be determined by a judicially trained mind. Under the National Highways Act, that safeguard is completely absent," he said.

 

Attorney General R Venkataramani, appearing for the Centre, informed the Bench that the government is actively considering amendments to the National Highways Act to ensure that compensation disputes are decided by a judicially trained adjudicatory forum.

 

Taking note of the submission, the Court indicated that it would await the government's decision on the proposed legislative changes instead of immediately ruling on the constitutional issue.

 

"We are only proposing the amendment. If the Government is examining the issue, we would welcome that. Why should we decide the issue, prima facie or finally, if there is a possibility of an appropriate legislative process? We can wait for some time," the Bench said.