- At present, compensation is first decided by a competent authority appointed by the government.
- If the landowner or NHAI disputes the amount, the matter goes to an arbitrator appointed by the Central Government.
- In many cases, senior government officers or bureaucrats act as arbitrators. The Supreme Court questioned whether a government officer should decide a dispute in which the government itself has a financial interest.
- The Court said such disputes should preferably be handled by judicially trained persons
- Compensation disputes involve examination of sale deeds, market value, land location, commercial potential, loss of income and damage to the remaining land.
- The Court observed that these issues require legal knowledge and judicial assessment, not only administrative experience.
- Section 3G of the National Highways Act deals with determination of compensation and appointment of an arbitrator.
- Section 3J excludes the application of the general land acquisition law to highway acquisitions.
- The Punjab and Haryana High Court had earlier raised constitutional concerns regarding Sections 3G and 3J.
- The High Court held that the existing system may violate Article 14 because highway landowners could receive weaker legal protection than other landowners.
- Article 14 guarantees equality before law and protection against arbitrary government action.
- Article 300A protects a person from being deprived of property except through a valid and fair legal process.
- The Supreme Court’s main concern is independence and fairness in deciding compensation, amendment may increase project costs if compensation awards become higher.
- However, the Court indicated that administrative convenience cannot override the rights of landowners.
- Parliament must pass a formal amendment before the existing system changes.
Question:
Q1. The Supreme Court recently asked the Central Government to consider amending which law?
a) Land Acquisition Act, 1894
b) National Highways Act, 1956
c) Arbitration and Conciliation Act, 1996
d) Right to Fair Compensation Act, 2013
Answer: b) The Supreme Court asked the Central Government to reconsider provisions of the National Highways Act, 1956 relating to the settlement of compensation disputes arising from highway land acquisition.
a) Land Acquisition Act, 1894
b) National Highways Act, 1956
c) Arbitration and Conciliation Act, 1996
d) Right to Fair Compensation Act, 2013
Answer: b) The Supreme Court asked the Central Government to reconsider provisions of the National Highways Act, 1956 relating to the settlement of compensation disputes arising from highway land acquisition.
