High Court of KeralaSingle JudgeWrit petition allowed; directive to grant inter...

M.M. PAILY VAZHUKKUMPARA and others v. UNION OF INDIA and others

Case / Petition Number:WP(C).No.16227 OF 2011(C)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A. Muhammed Mustaque
Judgment Date
2020-03-05
Court Decision / Holding
Writ petition allowed. The competent authority is directed to grant interest and solatium in light of Tarsem Singh within two months after notice to the petitioners.
Final Disposition
Writ petition allowed; directive to grant interest and solatium within two months of notice as per Tarsem Singh.

Parties to the Case

Appellants / Petitioners

  • M.M. Paily Vazhukkumpara
  • M.M. George So. Mathai
  • K. Madhavan Nair
  • George So. Devas-symuttom Thottill
  • Sheela Antony
  • Sebastian P.O. Ouseph
  • K.U. Yohannan
  • Paulose P. Mophoothankuzhi
  • K.U. Paulose So. Ulahannan
  • Joy Chaliyelil
  • Shaju C.Rso. Rappai
  • Annamma Mathaiwo.M.P.Mathai
  • M.K. Varghese Mekkattil
  • K.Ramakrishnan So.K.Raman Menon
  • V.P. Francisso.V.P Paulose
  • A.M. Umer So.Abdul Rahiman
  • Joy T.Vso.Varghese
  • K.C.Joseph So.Chacko
  • Paul Mani So.Mani
  • Jose K.Dso.Devassy
  • Vargheose P.Cso.Cherian
  • L.U.Paulus o.SOkay
  • K.C. Pappachan So.Chacko
  • K.Balachandra nSo.Raman Nair
  • M.P.George So.Paulose
  • Sal y George Wo.George Kooruvelil

Respondents

  • Union of India (Secretary to Government, Ministry of Shipping, Road Transport and Highways)
  • The National Highways Authority of India
  • The State of Kerala
  • The Deputy Collector and Special Land Acquisition Officer under the NH Act
  • The District Collector, Thrissur
  • Thrissur Expressway Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • M.A. Firoz
  • • George Mecheril

Counsels for Respondents

  • • P. Vijayakumar (ASG of India)
  • • K.A. Salil Narayanan
  • • A. C. Vidhya
  • • M.M. Deepa
  • • V. A. Johnson Varikkappallil
  • • Thomas Antony

Case Synopsis & Summary

This Kerala High Court writ petition challenges the statutory regime governing land acquisition under the National Highways Act, 1956, focusing on whether interest and solatium can be claimed when compensation is awarded under the NH Act. The Court observes that the National Highways Act provides a distinct mechanism for acquisition and compensation, with Section 3J stating that nothing in the Land Acquisition Act shall apply to NH acquisitions. Petitioners contend that interest and solatium, ordinarily available under the Land Acquisition Act, ought to be payable, and that the 2019 Supreme Court decision in Union of India v. Tarsem Singh (2019) 9 SCC 304 struck down 3J to the extent it denied solatium and interest. Arbitration under Section 3G(5) had occurred in 2017, but the petition was filed in 2011; the petition asserts that the remedy was pursued before this Court well in advance of the arbitration award. The Supreme Court’s Tarsem Singh decision is treated as clarifying the right to solatium and interest for NH acquisitions. The Court finds no delay in pursuing this challenge and concludes that Tarsem Singh supports relief. Accordingly, the writ petition is allowed, and the competent authority is directed to grant interest and solatium within two months after notice to the petitioners, in light of Tarsem Singh.

Provisions of Law Cited

National Highways Act, 1956Land Acquisition Act, 1894Section 3J of the National Highways ActSection 3G(5) of the National Highways ActSection 3G(3) of the National Highways ActSection 3A of the National Highways ActSection 3D of the National Highways Act

Legal Doctrines & Maxims

  • Waiver: voluntary relinquishment of a known right; Arbitrator has limited jurisdiction under NH Act; rights recognized after judicial pronouncements (Tarsem Singh)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that the Land Acquisition Act, 1894, ordinarily attaches interest and solatium to compensation. They challenge the NH Act’s Section 3J which bars application of the LA Act to NH acquisitions, arguing Tarsem Singh (2019) 9 SCC 304 recognizes solatium and interest for NH acquisitions. They note arbitration under NH Act (Section 3G(5)) occurred during pendency, but their challenge was filed in 2011; they argue the remedy matured via Tarsem Singh, and there is no justification to deny relief on timing or waiver grounds. They maintain that the authority should grant interest and solatium in light of Tarsem Singh.

Contentions of Respondents

The respondents submit that petitioners could have sought relief through arbitration and that the arbitrator’s jurisdiction is limited. They contend that 3J precludes LA Act provisions; the Tarsem Singh decision, though cited, is not applicable retroactively to pre-existing awards in all respects. They argue any waiver cannot apply where the right did not exist before the Tarsem Singh decision, and emphasize the need to respect arbitration outcomes and statutory channels.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Union of India v. Tarsem Singh2019 (9) SCC 304PositiveTarsem Singh held that Section 3J cannot deny solatium and interest; the judgment supports the petitioners’ entitlement, and the Kerala High Court relies on it to grant relief.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE** ## **THURSDAY, THE 05TH DAY OF MARCH 2020 / 15TH PHALGUNA, 1941** ## **WP(C).No.16227 OF 2011(C)** ## **PETITIONERS:** - **1 M.M.PAILY VAZHUKKUMPARA ,CHUVANNAMANNU P.O.,PATTIKKAD,, THRISSUR-680652** - **2 M.M.GEORGE SO.MATHAI MEKKATTIL HOUSE, VAZHUKKUMPARA ,CHUVANNAMANNU P.O.,PATTIKKAD,, THRISSUR-680652** - **3 K.MADHAVAN NAIR ANIYAN NAIR KOTHOTTIL HOUSE,CHEMUTHARA,, P.O.PATTIKKAD, THRISSUR680652** - **4 GEORGE SO.DEVASSYMUTTOMTHOTTIL HOUSE VAZHUKKUMPARA,CHUVANNAMANNU P.O.,PATTIKKAD,, THRISSUR-680652** - **5 SHEELA ANTONY CHAKKATHARA HOUSE KAIRALY NAGAR, PATTIKKAD,THRISSUR-680652** - **6 SEBASTIAN P.O.SO.OUSEPH PADIKKALATH HOUSE, PATTIKKAD P.O.,, THRISSUR-680652** - **7 K.U.YOHANNAN S/O.ULAHANNAN, KIZHAKKEKUTTIKKATTIL HOUSE,, CHUVANNAMANNU P.O.,CHUVANNAMANNU, PATTIKKAD P.O., THRISSUR-680652** - **8 PAULOSE P.MPOOTHANKUZHI HOUSE VAZHUKKUMPARA P.O.,, CHUVANNAMANNU, PATTIKKAD,, THRISSUR-680652** - **9 K.U.PAULOSE SO.ULAHANNAN KAROTTUKURUVELIL, AALPARA P.O.,, KANNARA, PATTIKKAD, THRISSUR-680652** - **10 JOY CHALIYELIL HOUSE CHUVANNAMANNU, PATTIKKAD,THRISSUR-680652** WP(C).No.16227 OF 2011(C) 2 - **11 SHAJU C.RSO.RAPPAI CHALISSERY HOUSE ERAVIMANGALAM, THRISSUR-680751** - **12 ANNAMMA MATHAIWO.M.P.MATHAI MEKKATTIL HOUSE, VAZHUKKUMPARAM,P.O.CHUVANNAMANNU, PATTIKKAD, THRISSUR-680652** - **13 M.K.VARGHESE MEKKATTIL HOUSE VVAZHUKKUMPARA,THONIKKAL,P.O.CHUVANNAMANNU,, PATTIKKAD, THRISSUR-680652** - **14 K.RAMAKRISHNANSO.K.RAMAN MENON KARAPPURATHU HOUSE, VAZHUKKUMPARA,,** - **P.O.CHUVANNAMANNU, PATTIKKAD, THRISSUR-680652** - **15 V.P.FRANCISSO.V.P PAULOSE VALLURAN HOUSE,P.O.CHUVANNAMANNU,, PATTIKKAD, THRISSUR-680652** - **16 A.M.UMMER SO.ABDUL RAHIMAN AMBALATH HOUSE,VAHZUKKUKMPARAM,, P.O.CHUVANNAMANNU, PATTIKKAD,, THRISSUR-680652** - **17 JOY T.VSO.VARGHESE THURUTHEL HOUSE P.O.CHUVANNAMANNU, PATTIKKAD,THRISSUR-680652** - **18 K.C.JOSEPH SO.CHACKO KAINIKKARA HOUSE, P.O.CHUVANNAMANNU,, PATTIKKAD, THRISSUR-680652** - **19 PAUL MANISO.MANI THERUVANKUNNEL HOUSE VAZHUKKUMPARA,** - **P.O.CHUVANNAMANNAU,PATTIKKAD, THRISSUR-680652** - **20 JOSE K.DSO.DEVASSY KALAN HOUSE,, P.O.CHUVANNAMANNAU,PATTIKKAD, THRISSUR-680652** - **21 VARGHESE P.CSO.CHERIAN PATTAYIL HOUSE,P.O.CHUVANNAMANNAU,PATTIKKAD,, THRISSUR-680652** - **22 L.U.PAULOSE SO.K.I.ULAHANNAN KOLLIYOTTIL HOUSE,, VAZHUKKUMPARA,, P.O.CHUVANNAMANNAU,PATTIKKAD, THRISSUR-680652** - **23 K.CPAPPACHANSO.CHACKO KAINIKKARA HOUSE,, P.O.CHUVANNAMANNAU,PATTIKKAD,** WP(C).No.16227 OF 2011(C) 3 ## **THRISSUR-680652** - **24 K.BALACHANDRAN SO.RAMAN NAIR AANTHOOR HOUSE,VAZHUKKUMPARA, P.O.CHUVANNAMANNAU,PATTIKKAD, THRISSUR-680652** - **25 M.P.GEORGE SO.PAULOSE MEKKATTIL HOUSE,VAZHUKKMPARA, P.O.CHUVANNAMANNAU,PATTIKKAD, THRISSUR-680652** - **26 SALY GEORGE WO.GEORGE KOORUVELIL HOUSE, P.O.CHUVANNAMANNU,, PATIKKAD, THRISSUR-680652** - **BY ADVS. SRI.M.A.FIROZ SRI.GEORGE MECHERIL** ## **RESPONDENTS:** - **1 UNION OF INDIA SECREARY TO GOVERNMENT,MINISTRY OF SHIPPING,, ROAD TRANSPORT AND HIGHWAYS, (DEPARTMENT OF RAOD TRANSPORT AND HIGHWAYS), NEW DELHI-1** - **2 THE NATIONAL HIGHWAY AUTHORITY OF INDIA G-5 & 6,SECTOR 10, DWARAKA,NEW DELHI-110075, REP.BY ITS CHAIRMAN** - **3 THE STATE OF KERALA REP.BY ITS CHIEF SECRETARY TO GOVERNMENT,, SECRETARIAT,THIRUVANANTHAPURAM-695001** - **4 THE DEPUTY COLLECTOR AND THE SPECIAL LAND ACQUISITION, OFFICER AND THE COMPETENT AUTHORITY UNDER THE, NATIONAL HIGHWAYS ACT, NHDP OFFICE, CHEMPUKAVU, THRISSUR,PIN-680003** - **5 THE DISTRICT COLLECTOR THRISSUR PIN-680003** - **6 THRISSUR EXPRESSWAY LTD PORJECT OFFICE BEHIND APPLLO TYRES, PERAMBRA,, THRISSUR, PIN680689,REP.BY ITS PROJECT DIRECTOR** - **R1, R6 BY ADV. SMT.M.M.DEEPA R1 BY ADV. SRI.V.A.JOHNSON VARIKKAPPALLIL R1 BY ADV. SRI.THOMAS ANTONY** WP(C).No.16227 OF 2011(C) 4 **R1-2 BY ADV. SHRI.P.VIJAYAKUMAR, ASG OF INDIA R2 BY ADV. SRI.K.A.SALIL NARAYANAN** **GOVERNMENT PLEADER, SMT.A C VIDHYA** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 05.03.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WP(C).No.16227 OF 2011(C) 5 ## **JUDGMENT** ## **Dated this the 5th day of March 2020** The short issue in this case whether interest and solatium can be claimed by the parties whose land have been acquired under the National Highways Act, 1956 without the same being raised in arbitration proceedings under the National Highways Act. 2. The dispute is essentially regard to interest and solatium as applicable to the compensation amount to be awarded under the Land Acquisition Act, 1894. 3. Under the National Highways Act, a different procedure is contemplated for acquisition and award of compensation. Section 3J of the National Highways Act states that, nothing in the Land Acquisition Act shall apply to an acquisition under the National Highways Act. Treating that interest and solatium is statutorily conferred, that it is not awarded under the National Highways Act as there is no similar provision under the National Highways Act. This writ petition was filed in the WP(C).No.16227 OF 2011(C) 6 year 2011, challenging the statutory provisions of the National Highways Act. 4. Some of the petitioners who were not satisfied with the award of compensation raised a dispute. That was referred to arbitration as contemplated under Section 3G(5) of the National Highways Act. It appears that the arbitration award was passed while this writ petition was pending. It is pointed out by the learned Standing Counsel for the National Highway Authority of India, that the award was passed as early as in the year 2017. 5. The Apex Court, in **Union of India v. Tarsem Singh** 2019 (9) SCC 304 struck down Section 3J to the extent the non grant of solatium and interest in respect of the land acquired under the National Highways Act. This judgment was rendered on 19/09/2019. The challenge therefore become an academic interest in as much as that it has already been sustained by the Apex Court. Now, the only dispute is regard to the relief to be given to the petitioners. 6. The learned Standing Counsel would submit that the petitioners could have very well pursued their remedy under arbitration and without prosecuting their remedy, foreclosed their rights to claim interest and solatium. WP(C).No.16227 OF 2011(C) 7 7. The arbitrator is having only limited jurisdiction and competency to entertain a dispute. There is a complete embargo in application of Land Acquisition Act, 1984 under Section 3J. A waiver would arise when there is an established right. A waiver is understood as voluntary relinquishment of a known right. If such a right is not available under statutory provisions as then stood. That could not have been persuaded before an arbitrator. It is only when the Apex Court declared the law by striking down Section 3J to the extend as above the right came to be recognized. That means it is much after the award passed in the matter such right came into being acknowledged. 8. The petitioners are pursuing their remedy before this Court in 2011 onwards. This Court alone can decide the issue in regard to the virus of the statutory provision. It is also to be noted that the petitioners had not slept over their right. They pursued the challenge before this Court, much before the arbitration award was passed. So there is no delay on their part. In such circumstances, the relief cannot be denied to the petitioners based on the Apex Court judgment in regard to interest and solatium. Accordingly, the writ petition is WP(C).No.16227 OF 2011(C) 8 allowed. The competent authority is directed to grant the interest and solatium in the light of Apex Court judgment in **Tarsem Singh** 's (supra) case within a period of two months after notice to the petitioners. Ordered accordingly. The writ petition is disposed of as above. **Sd/-** **A.MUHAMED MUSTAQUE** **JUDGE** AJ WP(C).No.16227 OF 2011(C) 9 ## **APPENDIX** ## **PETITIONERS' EXHIBITS:** |**EXHIBIT P1**|**TRUE COPY OF THE RELEVANT NOTIFICATION**| |---|---| ||**DATED 21/10/2005 PUBLISHED ON THE MALAYALA**| ||**MANORAMA DAILY DATED 24/11/2005.**| |**EXHIBIT P2**|**TRUE COPY OF THE RELEVANT PORTION OF**| ||**SECTION 3D NOTIFICATION ISSUED ON**| ||**20/10/2006.**| |**EXHIBIT P3**|**TRUE COPY OF THE NOTIFICATION ISSUED UNDER**| ||**SEC.3. A OF THE N.H. ACT ON 16/03/2007.**| |**EXHIBIT P4**|**TRUE COPY OF THE SEC. 3A NOTIFICATION DATED**| ||**16/11/2007.**| |**EXHIBIT P5**|**TRUE COPY OF THE RELEVANT PORTION OF THE**| ||**AGREEMENT EXECUTED BETWEEN THE 2ND AND 6TH**| ||**RESPONDENT ON 24/08/2009.**| |**EXHIBIT P6**|**TRUE COPY OF THE NOTICE ISSUED UNDER**| ||**SEC.3G(3) DATED 04/12/2009.**| |**EXHIBIT P7**|**TRUE COPY OF THE 3G(3) NOTICE DATED**| ||**05/12/2009.**| |**EXHIBIT P8**|**TRUE COPY OF THE 3G(3) NOTICE DATED**| ||**07/12/2009.**| |**EXHIBIT P9**|**TRUE COPY OF THE PROCEEDINGS OF THE 4TH**| ||**RESPONDENT IN RESPECT OF THE FIRST**| ||**PETITIONER.**| |**EXHIBIT P10**|**TRUE COPY OF THE JUDGMENT DATED 25/03/2011**| ||**IN WPC NO.8380/2011.**| |**EXHIBIT P11**|**TRUE COPY OF THE INFORMATION FURNISHED BY**| ||**THE N.H.AUTHORITIES, PROJECT IMPLEMENTATION**| ||**UNIT, MALDA DATED 04-07-2017 AND 01-06-**| ||**2017.**| |**EXHIBIT P12**|**TRUE COPY OF THE COMMUNICATION WAS OBTAINED**| ||**FROM THE OFFICE OF THE DISTRICT MAGISTRATE**| ||**& COLLECTOR, MURSHIDABAD ON 13-07-2017.**| |**EXHIBIT P13**|**TRUE COPY OF THE ORDER DATED 03-08-2017 IN**| WP(C).No.16227 OF 2011(C) 10 ||**I.A.NO.2/2017 AND 3/2017 IN**| |---|---| ||**C.A.NO.10767/2017.**| |**EXHIBIT P14**|**TRUE COPY OF THE ORDER DATED 21-07-2016 IN**| ||**C.A.NOS.129-159/2014 OF THE HON'BLE SUPREME**| ||**COURT OF INDIA.**| |**EXHIBIT P15**|**TRUE COPY OF THE COMMON JUDGMENT IN ARB.**| ||**APPEAL NO.18/18, 21/18 AND 22/18.**|