The Supreme Court has refused to interfere with an interim order of the Telangana High Court that permitted landowners to withdraw compensation amounts deposited by the National Highways Authority of India (NHAI) in a land acquisition dispute arising out of the four-laning of National Highway-163 in Telangana. Dismissing NHAI’s special leave petition, the Bench of Justices Sanjay Kumar and K. Vinod Chandran held that no ground was made out to interfere with the High Court’s interim order.
The dispute stems from land acquisition undertaken by NHAI for the Yadadri-Warangal highway expansion project. Landowners, dissatisfied with the compensation initially awarded by the competent authority, sought enhancement before the arbitrator under the National Highways Act, 1956. In 2018, the arbitrator enhanced the compensation and awarded interest at 9% for the first year from possession and 15% thereafter until payment.
NHAI challenged only the enhanced interest component, contending that under Section 3H(5) of the National Highways Act, the arbitrator could award only 9% interest and that the higher 15% rate under Section 80 of the RFCTLARR Act, 2013 was inapplicable since the acquisition was under the National Highways Act.
Before the Telangana High Court, NHAI argued that although it had deposited the disputed differential interest amount approximately Rs. 2.81 crore in compliance with the court’s earlier direction, the arbitral award ought to be stayed pending adjudication of its appeal. However, the High Court declined interim protection and permitted withdrawal of the deposited sums by the landowners, prompting NHAI to approach the Supreme Court.
Declining to intervene, the Supreme Court dismissed the SLP, effectively allowing the landowners to retain access to the deposited compensation while the underlying challenge continues.
