Deposit and payment of amount
Section 3H of the National Highways Act, 1956 deals with deposit and payment of amount. The amount determined under section 3G shall be deposited by the Central Government in such manner asmay be laid down by rules made in this behalf by that Government, with the competent authority before taking possession of the land. The Act came into force on 15 Apr 1957.
1[3H. Deposit and payment of amount.--(1) The amount determined under section 3G shall be deposited by the Central Government in such manner asmay be laid down by rules made in this behalf by that Government, with the competent authority before taking possession of the land.
(2) As soon as may be after the amount has been deposited under sub-section (1), the competent authority shall on behalf of the Central Government pay the amount to the person or persons entitled thereto.
(3) Where several persons claim to be interested in the amount deposited under sub-section (1), the competent authority shall determine the persons who in its opinion are entitled to receive the amount payable to each of them.
(4) If any dispute arises as to the apportionment of the amount or any part thereof or to any person to whom the same or any part thereof is payable, the competent authority shall refer the dispute to the decision of the principal civil court of original jurisdiction within the limits of whose jurisdiction the land is situated.
(5) Where the amount determined under section 3G by the arbitrator is in excess of the amount determined by the competent authority, the arbitrator may award interest at nine per cent, per annum on such excess amount from the date of taking possession under section 3D till the date of the actual deposit thereof.
(6) Where the amount determined by the arbitrator is in excess of the amount determined by the competent authority, the excess amount together with interest, if any, awarded under sub-section
(5) shall be deposited by the Central Government in such manner as may be laid down by rules made in this behalf by that Government, with the competent authority and the provisions of subsections (2) to (4) shall apply to such deposit.]
Section 3H, The National Highways Act, 1956 (Act 48 of 1956).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 2
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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K. Sujata Acharya v. State of Odisha
Court's Decision & Legal Precedent
Orissa HC DB noted Deity/Endowments/Tahasildar-CA moved District Judge under NH Act s.3H(4) (SPJC 03/2018); DJ (12.8.2021) directed disbursement of land value to Deity via Inspector of Endowments and structure value to petitioner within two months. Without challenge to that judgment, HC refused extra solatium/interest beyond DJ order but directed NHAI Project Director and CALA to release amounts per the s.3H(4) judgment preferably within five weeks; further remedies left open.
On this section: Applied s.3H(4): District Judge reference on apportionment of deposited compensation is binding for disbursement; HC enforces payment per that reference without rewriting statutory dues already adjudicated.
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Prabhakar Baburao Adsul v. Competent Authority cum Deputy Collector
Court's Decision & Legal Precedent
Bom HC DB directed Competent Authority to make a reference under NH Act s.3H(4) to the Principal Civil Court of original jurisdiction to determine the dispute over compensation paid for ~4948 sq.m. at Gat No.149 Balupatalachi Wadi (objection 3.2.2020). Apportionment/recovery disputes to be decided by that Civil Court; merits left open. Disposed on CA letter confirming referral within 15 days.
On this section: Applied s.3H(4): where apportionment/entitlement dispute arises over deposited compensation, Competent Authority must refer to Principal Civil Court of original jurisdiction.
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Premalata Panigrahi v. National Highways Authority of India
Court's Decision & Legal Precedent
Orissa HC DB noted NH Act s.3H(4) reference pending as CMA 01/2018 before District Judge Keonjhar on compensation apportionment, with alleged liberal adjournments. Declined mandamus without clear current status, but directed that on filing an early-disposal application the DJ should decide that application preferably within two weeks and proceed if no legal impediment.
On this section: Applied s.3H(4): pending Principal Civil Court/DJ references on compensation apportionment are to be progressed expeditiously on early-disposal applications.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
2 instruments name this provision in its title or its text without being made under it.
Questions about Section 3H
What have the courts held on Section 3H of the National Highways Act?
K. Sujata Acharya v. State of Odisha (28 Jul 2025) is the leading judgment on this section among those set out below: Applied s.3H(4): District Judge reference on apportionment of deposited compensation is binding for disbursement; HC enforces payment per that reference without rewriting statutory dues already adjudicated. Another 2 judgments on this section are set out below.
How do I find court cases under Section 3H of the National Highways Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: National Highways Act 1956 3H, section 3H National Highways Act 1956, section 3H of the National Highways Act. People searching for it also type national highways act 3h(4) and national highway act 3h. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with K. Sujata Acharya v. State of Odisha (28 Jul 2025).
What should I read with Section 3H of the National Highways Act, and has it changed?
Its own text turns on section 3D (Declaration of acquisition), section 3G (Determination of amount payable as compensation), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it. 2 instruments name it without being made under it, most recently The National Highways (Manner of deposition) Rules, 2018 (2019), then National Highways (manner of depositing the amount by the Central Government with the competent authority for acquisition of land) Rules, 1998. (1999).
When did Section 3H of the National Highways Act come into force?
Section 3H of the National Highways Act, cited as National Highways Act 1956 3H, came into force on 15 Apr 1957, having been enacted on 11 Sep 1956. It is in force as at the date shown on this page.
Other sections of this Act
- 3G. Determination of amount payable as compensation427 words
- 9. Power to make rules340 words
- 3D. Declaration of acquisition239 words
- 3E. Power to take possession203 words
- 7. Fees for services or benefits rendered on national highways202 words
- 8A. Power of Central Government to enter into agreements for development and maintenance of national highways178 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.