The Himachal Pradesh High Court has held that compensation for a building or structure acquired under the National Highways Act, 1956, is independently payable to the person who establishes an interest in the structure, and cannot be withheld merely because a dispute concerning ownership of the underlying land is pending.

The Court observed that a building, superstructure or improvement standing on acquired land is independently compensable, and the person who constructed, possessed, owned or beneficially enjoyed the structure is entitled to claim compensation to that extent.

Justice Sandeep Sharma remarked that: “Acquisition includes structure No. 35 and compensation for such structure must be paid to the person, who has established an interest in the structure. Needless to say, building, superstructure or improvement standing on the acquired land is independently compensable.”

The petitioner, Yagya Chand, approached the Himachal Pradesh High Court seeking release of compensation awarded for Structure No. 35, which was acquired by the National Highways Authority of India (NHAI) for the four-laning of the Nerchowk–Manali section of National Highway-21.

Under a supplementary award dated May 22, 2018, the Competent Authority-cum-Collector (CALA) had awarded ₹66.66 lakh for the structure, identifying the petitioner as its constructor.

However, following objections by the Managing Committee of Gurdwara Guru Granth Sahib, Bhuntar, claiming ownership over the property, the authorities withheld the compensation and deposited the amount in a fixed deposit pending resolution of the dispute.

Aggrieved by the non-release of compensation, the petitioner approached the High Court seeking payment of the awarded amount along with interest.

The High Court observed that the supplementary award and the Patwari's certificate established that the petitioner had constructed the acquired structure. It held that compensation for a building or superstructure is independently payable to the person who establishes an interest in it, irrespective of a pending dispute over ownership of the underlying land.

The Court further noted that the rival claimant had failed to produce any cogent evidence establishing ownership of the structure. It also took note of an earlier judgment in RSA No. 129 of 1997, wherein a Coordinate Bench had held that Gurdwara Guru Granth Sahib, Bhuntar, was not a legally constituted entity.

Accordingly, the Court directed the CALA to release ₹66.66 lakh towards compensation, along with the additional amount of ₹1,66,650 and up-to-date interest, preferably within three weeks.

Date of Decision: 16.10.2026