Himachal Pradesh Land Acquisition: Supreme Court Allows Compensation Enhancement Appeal

The Supreme Court of India, in the case of Shakuntla Devi vs. State of Himachal Pradesh & Others, addressed a dispute concerning compensation under the Land Acquisition Act, 1894. The ruling, delivered by Justices Kurian Joseph and Rohinton Fali Nariman, overturned the High Court’s decision and allowed the appellant to seek enhanced compensation.

Background of the Case

The case revolved around the acquisition of land for the widening of the Theog Kotkhai-Hatkoti (T.K.H.) road in Himachal Pradesh. A notification under Section 4(1) of the Land Acquisition Act was issued on June 13, 2008. To expedite the project, the government opted for a negotiated settlement with landowners instead of following standard acquisition proceedings.

A negotiated award was passed on September 11, 2008, stating that the landowners agreed to a fixed compensation and waived their right to enhancement under Section 18 of the Act. However, a Supplementary Award was issued on December 18, 2009, determining compensation for structures and trees on the acquired land. The appellant challenged this award, claiming that it was unilateral and lacked statutory benefits.

Key Legal Issues

• Was the supplementary negotiated award legally binding without the landowner’s consent?
• Did the appellant have the right to seek enhanced compensation under Section 18 of the Act?
• Did the High Court err in dismissing the appellant’s plea on the ground that she had accepted the award?

Arguments of the Parties

Petitioner’s Arguments (Shakuntla Devi)

The appellant contended that she had not voluntarily accepted the compensation under the supplementary award. She argued that the award was passed in absentia and did not provide her with an opportunity to negotiate or challenge the valuation of structures and trees.

Respondent’s Arguments (State of Himachal Pradesh)

The respondents maintained that the supplementary award was a continuation of the negotiated settlement. They contended that once the landowners accepted compensation for the land, they waived their right to claim enhancement for other components.

Supreme Court’s Observations

Justice Kurian Joseph, delivering the judgment, stated:

“The appellant had not accepted the award; if so, she would not have pursued the inadequacy of compensation before the High Court in the writ petition.”

The Court noted that the supplementary award explicitly directed that notice be issued under Section 12(2) of the Act. This implied that the award was not a negotiated one and required further deliberation.

Final Verdict

The Supreme Court allowed the appeal and directed that the appellant be given an opportunity to seek a reference under Section 18 of the Act. If the appellant filed an application for reference within four weeks, the Land Acquisition Collector was instructed to refer the matter to the competent court within a month. The Reference Court was directed to dispose of the matter expeditiously, preferably within six months.

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Download Judgment: Shakuntla Devi vs State of Himachal Pr Supreme Court of India Judgment Dated 02-03-2016-1741853889298.pdf