Land Compensation Case: Supreme Court Fixes Fair Compensation for Landowners

The Supreme Court of India, in the case of Sachichidanand Prasad & Others vs. General Manager, National Thermal Power Corporation & Another, addressed the dispute over compensation for land acquisition. The ruling, delivered by Justices Kurian Joseph and Rohinton Fali Nariman, revised the compensation amount and directed parity among affected landowners.

Background of the Case

The appellants, landowners, challenged the compensation fixed by the Collector for land acquired by the National Thermal Power Corporation (NTPC). The Collector had set the compensation at Rs. 357 per decimal. On reference, the Reference Court significantly increased the valuation to Rs. 1,988 per decimal. However, the High Court overturned this decision, ruling that the Reference Court’s valuation was erroneous and reinstating a lower compensation amount.

Aggrieved by this decision, the landowners approached the Supreme Court, seeking fair compensation in line with settlements granted to similarly situated landowners.

Key Legal Issues

• Was the High Court justified in setting aside the Reference Court’s valuation?
• Should landowners receive compensation on par with other similar settlements?
• What is the fair market rate for the acquired land?

Arguments of the Parties

Petitioner’s Arguments (Sachichidanand Prasad & Others)

The appellants contended that their land had been undervalued and that other landowners in the vicinity had received higher compensation. They argued that the High Court’s decision to annul the Reference Court’s valuation deprived them of fair compensation.

Respondent’s Arguments (NTPC & Collector)

The respondents submitted that a fair settlement had already been reached with other affected landowners, fixing compensation at Rs. 480 per decimal. They asserted that the appellants should be granted the same rate, ensuring uniformity in compensation.

Supreme Court’s Observations

Justice Kurian Joseph, delivering the judgment, stated:

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

The Court noted that while Rs. 480 per decimal was the standard settlement rate, the appellants could claim a higher amount if they demonstrated that similarly situated landowners had received a better settlement.

Final Verdict

The Supreme Court ruled that the appellants were entitled to Rs. 480 per decimal as compensation, with all statutory benefits. Additionally, if the appellants could show within one month that NTPC had granted higher rates to other landowners, they too would receive the same higher compensation. The Court directed NTPC to ensure that all payments were made within three months.

Don’t miss out on the full details! Download the complete judgment in PDF format below and gain valuable insights instantly!

Download Judgment: Sachichidanand Prasa vs General Manager, Nat Supreme Court of India Judgment Dated 01-03-2016-1741853896341.pdf