Kochi: The Kerala High Court has clarified the scope of the word ‘dispute’ under Section 3H(4) of the National Highways Act, 1956, while dealing with compensation claims in land acquisition cases.

A Division Bench comprising Justice A Muhamed Mustaque and Justice Harisankar V Menon observed that only two types of disputes must be referred by the Competent Authority to a civil court: disputes regarding the apportionment of compensation and disputes over the person entitled to receive it.

The court held that such disputes should be referred to a civil court only when the competent authority cannot decide them on its own without adjudication. If a claimant’s title deed or document is valid on its face, the authority can act upon it without referring the matter, even if another party challenges its validity.

The Bench further clarified that a third party wishing to contest such documents must file a separate case before a civil court. They cannot bypass limitation laws by seeking a reference through the competent authority under the NH Act.

The ruling came in an appeal filed by a petitioner who claimed entitlement to compensation for land acquired by the NHAI, arguing that his father had transferred the property when he was a minor without civil court permission. A single judge had dismissed his plea as time-barred.

The Division Bench, however, said the question was whether the matter required reference to a civil court. Since the title deed was accepted as valid by the authority, the court held there was no need for such a reference. The petitioner was given liberty to challenge the deed through independent civil proceedings, subject to the law of limitation.
(With LiveLaw inputs)