Petitioners to receive compensation for unauthorized pipeline construction without due process; acquisition process to be completed within three months.
In a significant ruling, the Gujarat High Court has directed Gail (India) Ltd. to compensate petitioners Ushaben Harilal Nandha and another for illegally utilizing their land for laying a petroleum pipeline without proper acquisition notification under the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962. The Division Bench, comprising Mrs. Sunita Agarwal, Chief Justice, and Justice D.N. Ray, delivered the judgment on August 4, 2026, in the matter of R/Special Civil Application No. 6224 of 2019.
The court found that Gail (India) Ltd. had utilized the petitioners' land in Jamnagar during 2007-2008 without adhering to the necessary legal procedures for land acquisition. The judgment emphasized that such actions could not be regularized, as they violated the petitioners' constitutionally protected rights under Article 300A of the Indian Constitution.
The court has ordered that the acquisition process be initiated, treating the date of filing the writ petition, March 27, 2019, as the notification date for determining the market value of the land. The entire acquisition process, including compensation calculation, must be completed within three months. Compensation will include interest from the date of dispossession until payment.
While the court acknowledged the illegality of the pipeline laying, it deemed the removal of the pipelines infeasible due to their critical role in the national LPG supply chain under the Prime Minister Ujwala Scheme. Instead, the court focused on ensuring fair compensation for the petitioners.
Regarding the challenge to the 2018 acquisition notifications for parallel pipelines, the court found no valid grounds to sustain the challenge. However, petitioners were advised to approach the competent authority or appellate authority under the Act for compensation issues.
The court concluded by disposing of the petition, allowing for further legal recourse if the directions were not observed.
Bottom Line :
Acquisition of Right of User in Land - Illegal utilisation of land for laying petroleum pipeline without acquisition notification under the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 - Compensation to be determined with market value as on the date of filing of the writ petition, along with interest from date of dispossession till payment.
Statutory provision(s): Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962, Sections 3A, 6, Article 300A of the Constitution of India
Ushaben Harilal Nandha v. Union of India, (Gujarat)(DB) : Law Finder Doc id # 2959735
