Allahabad High Court asks Centre to clarify LA Act 2013 applies to rehabilitation awards under NH Act

The Allahabad High Court recently directed the Central government to issue a circular clarifying that the benefits of the Land Acquisition Act, 2013 (LA Act 2013) are relevant to determine rehabilitation and resettlement awards under National Highways Act (NH Act). .Justices Kshitij Shailendra and Manoj Kumar Gupta passed the order after noting that there was an increase in cases involving allegations of unfulfilled awards under the NH Act. The Bench observed that this may be due to confusion over whether the High Court's earlier judgment in Ranvir Singh and 35 others vs. NHAI still held the field..In the Ranvir Singh case, the Court had held that the benefits of the LA Act 2013 would apply to determine the awards payable for resettlement and rehabilitation under the NH Act. The National Highways Authority of India (NHAI), however, challenged this February 2023 ruling before the Supreme Court on the limited aspect of whether it should be the collector or the competent authority under the NH Act who should pass awards under the Act. The NHAI argued that the Ranvir Singh judgment was inconsistent with the NH Act insofar as it directed the collector to pass the award. The NH Act vests authority solely in the competent authority to conduct inquiries and declare awards, the NHAI maintained. This appeal is still pending before the Supreme Court. .The Bench of Justices Shailendra and Gupta, however, pointed out that the Ranvir Singh judgment was only contested on this limited aspect. The ruling was still binding when it comes to whether the LA Act 2013 is applicable to awards passed under the NH Act, the Court pointed out."We notice that in Ranvir Singh (supra), the issue was whether the provisions of rehabilitation and resettlement under the Act, 2013 would apply to the acquisitions made under the NH Act or not. The ratio of the judgment in Ranvir Singh (supra) is binding on this Court and not the directions issued in the operative part of the said order as the same is not the ratio decidendi of the said case," the Court observed..The Court, thus directed the Central Government to issue circular to clarify this legal position."As the judgment of Division Bench of this Court in Ranvir Singh (supra) is not under challenge on merits, it is desirable that Central Government clarifies the legal position by issuing a circular so as to obviate filing of separate petitions by affected persons for direction to pass such an award," the Court ordered..The order was passed on a plea filed by certain persons seeking the payment of a rehabilitation and resettlement award after their land was acquired under the provisions of the NH Act. The award was sought under the provisions of the LA Act, 2013. Notably, the petitioners had prayed for directions to this effect to be issued to the collector concerned. However, the NHAI argued that it is only the competent authority (not the collector) under the NHAI Act that can pass the award. Apart from this aspect, the NHAI did not oppose the petitioners' prayer for the payment of a resettlement and rehabilitation award in line with the mandate of the Land Acquisition Act, 2013. The Court agreed with the NHAI that the competent authority as defined in Section 3(a) of the NH Act should be the authority to assess and decide on the petitioners' claim..The Court proceeded to dispose of the plea by directing this competent authority to decide on the petitioners' claim, while having regard to the LA Act, 2013. Advocate Manoj Kumar Dhuriya appeared for petitioners. Government Advocate Pranjal Mehrotra appeared for NHAI..[Read Order]