Compensation claims for allegedly utilized highway land require Section 129 revenue demarcation.

The petitioner, a registered partnership firm, claimed ownership over land bearing Khasra Nos. 181, 183, 184, 185, 192/1, 192/2 and 663.

The respondents issued a notification dated 06.09.2018 under Section 3-A of the National Highways Act, 1956, for acquisition of land for widening National Highway No. 53 under the Raipur–Durg Bharatmala Project.

Although Khasra Nos. 184 and 185 were specifically included in the notification, the petitioner alleged that portions of Khasra Nos. 192/1, 192/2 and 663 were also utilized for road construction without determination or payment of compensation.

Following the petitioner’s complaint dated 14.03.2022, the Land Acquisition Officer directed a spot inspection, and the Revenue Inspector and Patwari prepared a panchnama/report.

The petitioner nevertheless alleged that no effective action was taken to determine and pay compensation for the additional land allegedly utilized.

The NHAI disputed the claim, asserting that all land actually required had already been acquired and compensated, while the remaining land had neither been acquired nor taken over.

1. Whether the petitioner’s additional land, beyond the land already acquired and compensated, had actually been taken over or utilized for construction or widening of National Highway No. 53?

2. Whether the petitioner was entitled to initiation of proceedings for determination and payment of compensation in respect of any such additional land found to have been utilized?

The Court applied Section 129 of the Chhattisgarh Land Revenue Code, 1959, which governs demarcation of land in accordance with the prescribed revenue procedure.

The Court also considered the acquisition framework under Section 3-A of the National Highways Act, 1956, pursuant to which the relevant land had been notified for acquisition.

The governing principle was that a disputed factual question concerning the identity and extent of land acquired, taken over, or utilized for a public project must be determined through physical demarcation and verification by the competent revenue authority, with reference to revenue records, maps, acquisition proceedings, and the actual construction on site.

If additional land was found to have been utilized beyond the land already acquired and compensated, the competent authority was required to initiate lawful proceedings for determination and payment of compensation after hearing the affected parties.

The Court found that the central dispute was factual: the petitioner alleged that additional portions of its land had been used for the highway, whereas the NHAI denied having taken or utilized such land.

Since this issue could not be satisfactorily resolved merely from the pleadings, the Court directed a formal demarcation under Section 129 of the Chhattisgarh Land Revenue Code.

The Land Acquisition Officer was required to provide prior notice and an opportunity of participation to the petitioner and the concerned respondents, and to consider the revenue records, maps, acquisition documents, Section 3-A notification, prior panchnama, and the actual area occupied by the highway.

The Court deliberately refrained from deciding either the factual extent of land utilized or the petitioner’s entitlement to compensation, leaving those questions to the competent authority on the basis of the demarcation report.

If the demarcation established that any land beyond the area already acquired and compensated had been taken over or utilized for the National Highway, the competent authority was directed to initiate proceedings for determination and payment of compensation in accordance with law, after granting due hearing to the petitioner and other concerned parties.

Such compensation proceedings, if required, were to be completed within a further six months from completion of the demarcation.

No opinion was expressed on the merits of the petitioner’s claim, and no order as to costs was made.