Man To Get Balance Of ₹68 Lakh For Highway-Acquired Structure As Allahabad HC Says Officer Couldn’t Revalue Award

The petitioner claimed through his predecessor, whose name appeared in the Section 3-D notification for land acquired under the National Highways Act, 1956.

After verification of structures on the acquired land, the Competent Authority made a supplementary award on 4 August 2023, fixing compensation for the petitioner’s constructions at Rs. 68,00,650.78.

Although the petitioner was later asked to provide documents for release of compensation, the Authority conducted a fresh verification and issued a second supplementary award on 14 August 2024.

The petitioner received Rs. 29,18,284, but no payment was made under the 2023 award; his subsequent representation seeking payment remained undecided.

Section 3-G(1) of the National Highways Act, 1956 authorises the Competent Authority to determine compensation; under Section 3-G(5), a party dissatisfied with that determination may apply to have the amount determined by an arbitrator, with Sections 3-G(6) and 3-G(7) governing the arbitration process and relevant factors.

A statutory authority has no inherent power of review; that power must be conferred expressly or by necessary implication (Patel Narshi Thakershi v. Pradyumansinghji Arjunsinghji).

A statutory authority has no inherent power of review; that power must be conferred expressly or by necessary implication (Kalabharati Advertising v. Hemant Vimalnath Narichania; Shivraji v. Deputy Director of Consolidation).

Where legislation prescribes the manner for challenging a determination, it must be followed (Nazir Ahmad v. King Emperor).

Article 300A protects against deprivation of property except by authority of law.

The Court held that the 2023 award was a final determination under Section 3-G(1), made after verification and followed by the respondents’ request for documents to facilitate payment; it was not provisional.

The 2024 award followed a fresh valuation exercise and substantively reduced the amount for the same structures, rather than correcting a clerical or arithmetical slip.

Since the Act provides arbitration as the route for disputing quantum but gives the Competent Authority no power to review its award, the Authority could not substitute a new valuation on its own initiative.

The Court therefore found the later award without jurisdiction.

It directed the respondents to release the Rs. 68,00,650.78 determined by the 4 August 2023 award, less Rs. 29,18,284 already paid, within one month after production of a certified copy of the judgment before the Competent Authority.

The Court left open the right of the NHAI or another party to seek arbitration under Section 3-G(5), expressing no opinion on the merits of valuation or any limitation issue.