Himachal Pradesh High Court

A land-title dispute does not justify withholding compensation for an acquired structure from its established builder.

YAGYA CHAND vs COMPETENT-AUTHORITY-CUM-COLLECTOR LAND ACQUISITION NHAI (SLAU-II) AND OTHERS

Himachal Pradesh High CourtJUDGMENT: October 16, 20262 MIN READSOURCE JUDGMENT
A land-title dispute does not justify withholding compensation for an acquired structure from its established builder.. YAGYA CHAND vs COMPETENT-AUTHORITY-CUM-COLLECTOR LAND ACQUISITION NHAI (SLAU-II) AND OTHERS. Himachal Pradesh High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

In highway acquisition proceedings, the petitioner’s house was identified as Structure No. 35.

Source reference: p. 4–5

The supplementary award recorded him as its constructor and assessed compensation of ₹66,66,000, with an additional 2.5% charge of ₹1,66,650.

Source reference: p. 4–5

The award amount was deposited in a fixed deposit after the Gurdwara Guru Granth Sahib, Bhuntar’s Managing Committee objected to payment, asserting that the property belonged to the Gurdwara and that related litigation was pending.

Source reference: p. 5–7

The petitioner relied on the award, a Patwari’s certificate, and the respondents’ valuer’s report to establish that he had constructed the house.

Source reference: p. 9–11

The Committee relied on civil litigation concerning the land, but the Court noted that the litigation did not seek a declaration or relief concerning ownership of Structure No. 35.

Source reference: p. 11–12

The petitioner sought release of the compensation and accrued interest; the respondents also objected that he had an alternative remedy under the National Highways Act.

Source reference: p. 8
02

Issues

Whether the petitioner had established an entitlement to compensation awarded for Structure No. 35, notwithstanding the dispute concerning ownership of the underlying land.

Source reference: p. 9–12

Whether the pending litigation concerning the land justified withholding the structure compensation, including in light of the Committee’s objection to payment.

Source reference: p. 7–8, 11–13
03

Law Applied

A building, superstructure, or improvement on acquired land is independently compensable, and the person who establishes an interest in that structure may claim its compensation, even if title to the underlying land is disputed.

Source reference: p. 12

An acquisition award identifying a person as the structure’s constructor, supported by official evidence such as a Patwari’s certificate, may establish a prima facie claim; the burden then shifts to a rival claimant to produce cogent evidence of entitlement.

Source reference: p. 12

The Court also relied on Union of India v. Tarsem Singh, (2019) 9 SCC 304, for the principle that compulsory-acquisition compensation must be just and fair and must not be discriminatory.

Source reference: p. 25

In considering the Committee’s asserted status and the related litigation, the Court referred to the prior proceedings concerning the Sikh Gurudwara Act, 1925, including the finding that the claimed Gurdwara entity had not been constituted in accordance with the Act.

Source reference: p. 14–24
04

Reasoning

The supplementary award expressly recorded the petitioner as the person who constructed Structure No. 35, and the Patwari’s certificate and the respondents’ valuer’s report supported that finding.

Source reference: p. 4–5, 10–11

The Committee’s claim related principally to the land; it produced no specific pleading, declaration, or other cogent evidence establishing its ownership of the structure.

Source reference: p. 11–12

The Court therefore treated the petitioner’s claim to structure compensation as distinct from the dispute over land title.

Source reference: p. 11–12

It also considered that the prior proceedings undermined the Committee’s claim to represent a legal entity entitled to the property, and concluded that the pending land litigation did not justify retaining the structure compensation.

Source reference: p. 22–25
05

Holding

The Court allowed the petition and directed the Competent Authority-cum-Collector to release ₹66,66,000 awarded for Structure No. 35, together with the unpaid ₹1,66,650 and up-to-date interest, preferably within three weeks.

The petition was disposed of accordingly, along with any pending applications.

Source reference: p. 26
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Code of Civil Procedure, 19081

Himachal Pradesh High Court

Original Court PDF

YAGYA CHANDvsCOMPETENT-AUTHORITY-CUM-COLLECTOR LAND ACQUISITION NHAI (SLAU-II) AND OTHERS

Himachal Pradesh High Court · October 16, 2026

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