The Gauhati High Court has clarified a critical ambiguity in land acquisition jurisprudence by holding that the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act) applies to acquisitions of right of user under the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (P&MP Act). The judgment underscores that the 2015 Removal of Difficulties Order extends RFCTLARR Act’s enhanced compensation framework to all acquisitions under enactments listed in the Fourth Schedule, including the P&MP Act, overriding earlier interpretations that confined compensation to 10% of market value under the P&MP Act.
Background & Facts
The Dispute
The petitioner, Kaddus Ali, inherited a one-third share of ancestral land measuring 13 Bighas (Dag No. 864, Periodic Patta No. 17) in Village Nichuka, Barpeta District, Assam. The land was originally recorded in his father’s name and devolved upon the petitioner and his brothers. Following the death of one brother, the petitioner became the owner of his share, while the remaining portion passed to the legal heirs of his deceased brother.
Key Facts
- 15.03.2016: Petitioner’s name recorded as pattadar in Jamabandi; land revenue paid regularly.
- 26.12.2018: Ministry of Petroleum and Natural Gas issued a Notification under Section 3(1) of the P&MP Act, 1962, acquiring the Right of User over 1 Bigha 17.5 Lechas of the petitioner’s land for laying the Barauni-Guwahati Gas Pipeline (BGPL).
- 09.08.2019: Notice issued by the Competent Authority under the P&MP Act. The petitioner claims he became aware of this notice only on 20.06.2020, precluding his participation in objection proceedings.
- 23.07.2020: Petitioner filed a claim petition before the Competent Authority, seeking compensation under the RFCTLARR Act, 2013, arguing that the land would become permanently unusable for beneficial purposes due to restrictions under Section 9 of the P&MP Act, 1962 (e.g., prohibition on construction, excavation, or tree plantation).
- 07.08.2020: Competent Authority rejected the claim, holding that compensation must be determined under the P&MP Act, 1962.
- 21.08.2020: Public notice issued for survey and compensation assessment under Section 10 of the P&MP Act, 1962 (10% of market value + crop compensation). Petitioner refused to sign the declaration form.
- 20.04.2023: Subsequent pipeline (Paradip Numaligarh Crude Oil Pipeline) laid within the same corridor without additional notice or compensation, reinforcing the petitioner’s claim of permanent deprivation of land use.
Procedural History
- 12.06.2019: Petitioner filed Misc. (L.A) Case No. 16/2020 under Sections 10(2) and 10(3) of the P&MP Act, 1962 before the District Judge, Barpeta.
- Respondents’ Positions:
- Respondent Nos. 2 - 4 (State authorities): Filed a joint written statement refraining from comment, implying no objection to the petitioner’s contentions.
- Respondent No. 1 (GAIL): Argued that compensation was determined under the First Schedule of the RFCTLARR Act, 2013 (market value × 2 + 40% solatium), a methodology uniformly adopted across Assam and other projects.
- 02.01.2024: Learned Additional District Judge dismissed the claim petition as premature and not maintainable
Case Details
*Kaddus Ali v. GAIL (India) Ltd. and Ors.*
Court
Gauhati High Court (High Court of Assam, Nagaland, Mizoram and Arunachal Pradesh)
Date
16 June 2026
Case Number
WP(C)/572/2024
Bench
Hon’ble Mr. Justice Kardak Ete
Counsel
Pet: Mr. N. N. B. Choudhury, Ms. N. Mahanta, Mr. N. Gautam, Mr. K. N. Choudhury (Senior Counsel), Mr. A. Hussain, Mr. M. S. Alam, Md. S. Alom
Res: Mr. R. Borpujari (for R-1), Mr. B. D. Chowdhury (for R-1), Mr. D. Saikia (Senior Counsel for R-1), Mr. G. Baishya (for R-1), Mr. R. K. Deb Choudhury (Dy. S.G.I.), Ms. N. Bordoloi (Standing Counsel, Revenue Department for R-2), Mr. H. Sarma (State Counsel for R-3 & R-4)
Frequently Asked Questions
Under the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (P&MP Act), 'acquisition of Right of User' means the Central Government acquires the right to use land for laying pipelines while ownership remains with the landowner. In contrast, 'acquisition of land' (e.g., under the Land Acquisition Act) involves transfer of ownership. The P&MP Act imposes restrictions (e.g., no construction, excavation) under Section 9, but the landowner retains formal title.
Yes. While Section 105(1) of the RFCTLARR Act excludes enactments listed in the Fourth Schedule (including the P&MP Act), the 2015 Removal of Difficulties Order explicitly extends the First, Second, and Third Schedules of the RFCTLARR Act to acquisitions under these enactments. The Gauhati High Court held that this order overrides earlier interpretations and mandates RFCTLARR Act compensation for Right of User acquisitions.
P&MP Act (Section 10): Compensation is 10% of the market value of the land + actual damages (e.g., crops, temporary severance). RFCTLARR Act (First Schedule): Compensation includes market value × 2 + 40% solatium + interest (9% for first year, 15% thereafter). The RFCTLARR Act also provides rehabilitation and resettlement benefits (Second/Third Schedules).
Yes. Section 10(2) of the P&MP Act allows either party to appeal to the District Judge if the compensation determined by the Competent Authority is not acceptable. However, Section 10(6) makes the District Judge’s decision final, with no further appeal. The Gauhati High Court held that writ jurisdiction under Article 226 is maintainable in such cases, as no alternative remedy exists.
Section 9 of the P&MP Act prohibits landowners from: - Constructing buildings or structures.
- Excavating tanks, wells, or reservoirs.
- Planting trees.
The Court held that these restrictions substantially impair the land’s beneficial use, justifying enhanced compensation under the RFCTLARR Act.
