‘Retired HC Judge could be arbitrator to determine compensation for land losers’
Collector is the arbitrator to determine compensation, and the process of determining compensation amount is more like the exercise of a judicial function; the Collector requires much time to pass an award, says the court
The Madurai Bench of the Madras High Court has suggested that the Central government could think of appointing a retired High Court Judge as arbitrator to determine compensation to people whose lands are acquired for implementing projects.
A Division Bench of Justices V. Bhavani Subbaroyan and K.K. Ramakrishnan observed that the District Collector was the arbitrator to determine the compensation. The process of determining compensation amount was more like the exercise of a judicial function. The Collector required much time to pass an award.
The Collector was an authority acting in various capacities. The Collector was heading the district administration. When such a burdensome duty was cast upon the Collector, the official might not determine a fair compensation by applying judicial mind and following the procedure. Sometimes, miscarriage of justice took place by way of dismissing the arbitration applications filed by the landowners, the court observed.
As a result, the landowners’ legitimate right of getting a fair compensation was deprived. Receiving a fair compensation was not only a statutory right, it was also a constitutional obligation on the part of the government. Therefore, in order to streamline the system and overcome the miscarriage of justice, the court was duty bound to suggest that the Central government, as a constitutional guardian of the land losers, had to think of appointing a retired High Court Judge as arbitrator or otherwise, follow the scheme of reference to determine the compensation mentioned in the Tamil Nadu Highways Act, the court observed.
The court made the suggestion while hearing a Civil Miscellaneous Appeal preferred by the National Highways Authority of India challenging the compensation awarded by the Principal District Court in Madurai. A notification was issued for acquisition of lands for laying a four-way road from Madurai to Tiruchi. The District Revenue Officer fixed the value of the lands and the compensation. The landowners approached the Collector seeking enhancement of the compensation.
The Collector as arbitrator dismissed the claim of the landowners. The landowners preferred an arbitration original petition before the Principal District Court, which set aside the award passed by the Collector and passed the award determining the compensation on the basis of the documents produced by both sides and granted solatium, additional amount with interest. The Principal District Court order was challenged before the High Court, which dismissed the Civil Miscellaneous Appeal.
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