Land Acquisition and Compensation: Shobha Singh vs. National Thermal Power Corporation

The case of SHOBHA SINGH vs. NATIONAL THERMAL POWER CORPORATION & ANR. concerns the dispute over land compensation for the acquisition of property by the National Thermal Power Corporation (NTPC). The Supreme Court examined the fairness of compensation awarded to the appellant and whether she was entitled to higher compensation.

Background of the Case

The appellant, Shobha Singh, challenged the compensation amount fixed by the Collector for the land acquired from her for NTPC. The Collector initially set the compensation at Rs. 242 per decimal. However, upon reference, the Reference Court increased the valuation significantly to Rs. 6,000 per decimal.

NTPC, dissatisfied with this valuation, appealed to the High Court, which found the increase excessive and reversed the Reference Court’s decision, restoring the original compensation of Rs. 242 per decimal.

Aggrieved by the High Court’s ruling, the appellant approached the Supreme Court seeking a fair valuation of her land.

Arguments Presented

Appellant’s Arguments:

• The appellant argued that the compensation granted by the High Court was inadequate and did not reflect the true market value of the land.
• She contended that other landowners in the vicinity had received higher compensation for similar land acquired for NTPC.

Respondent’s Arguments:

• The respondents presented an additional counter affidavit stating that several other landowners had settled the matter by agreeing to a compensation rate of Rs. 480 per decimal.
• They contended that the compensation granted to the appellant should not exceed this rate.

Supreme Court’s Judgment

The Supreme Court considered the submissions from both sides and ruled:

“The appellant shall be entitled to have his land value fixed at the rate of Rs. 480 per decimal along with all statutory benefits.”

Additionally, the Court provided the appellant with an opportunity to claim a higher compensation rate if she could prove that similarly situated landowners in the vicinity had been compensated at a higher rate:

“In case the appellant shows, within a period of one month from today, the first respondent that in the case of others who are similarly situated in the vicinity of the appellant, the first respondent has agreed for higher rates, such higher rates shall be granted to the appellant as well along with all statutory benefits.”

Implementation and Timeline

The Supreme Court directed NTPC to complete the payment process within three months. The Court also mandated that if the appellant successfully proves that others received higher compensation, she should be awarded the same rate.

Final Decision

Since all issues were addressed, the Supreme Court disposed of the appeals with no further directions and no order as to costs.

Conclusion

This ruling highlights the importance of equitable compensation in land acquisition cases. The judgment ensures that landowners are treated fairly and compensated justly, preventing disparities in valuation. It also empowers landowners to challenge lower compensation by presenting evidence of higher settlements for similarly situated land.

The appeal was disposed of with no order as to costs.

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Download Judgment: Shobha Singh vs National Thermal Pow Supreme Court of India Judgment Dated 17-02-2016-1741852718347.pdf