Land Compensation Dispute: Supreme Court Directs Fair Settlement for Landowners

The Supreme Court of India, in the case of Sachichidanand Prasad & Ors. vs. General Manager, National Thermal Power Corporation & Anr., addressed the dispute over land compensation for acquisitions made by the National Thermal Power Corporation (NTPC). The judgment, delivered by Justices Kurian Joseph and Rohinton Fali Nariman, directed a revised land valuation ensuring parity among all affected landowners.

Background of the Case

The appellants were landowners whose lands were acquired for NTPC. The initial compensation, fixed by the Collector, was Rs. 357 per decimal. The appellants challenged this valuation, and the Reference Court revised it to Rs. 1988 per decimal. However, the High Court overturned this decision, reducing the compensation significantly. The appellants then approached the Supreme Court seeking a fair settlement.

Key Legal Issues

• Was the land valuation by the Reference Court justified?
• Should the compensation be aligned with settlements reached with other landowners in the same area?
• What statutory benefits should be provided to affected landowners?

Arguments of the Parties

Petitioner’s Arguments (Sachichidanand Prasad & Ors.)

The appellants contended that their land was undervalued and that similar landowners in the vicinity had received higher compensation. They argued that the High Court’s decision to annul the Reference Court’s valuation was unfair and led to financial losses for the affected landowners.

Respondent’s Arguments (NTPC & Collector)

The respondents stated that a fair settlement had already been reached in other similar cases, where compensation was fixed at Rs. 480 per decimal. They argued that the appellants should be granted the same rate as others who had agreed to the settlement.

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 further allowed the appellants to present evidence of any higher compensation awarded to similarly placed landowners. If such evidence was provided within one month, they would be entitled to the higher compensation rate.

Final Verdict

The Supreme Court directed NTPC to ensure that the compensation, at a minimum of Rs. 480 per decimal, is paid within three months. If appellants could prove that higher settlements had been reached with others, they too would receive the same benefits.

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Download Judgment: Sachichidanand Prasa vs General Manager, Nat Supreme Court of India Judgment Dated 01-03-2016-1741853854523.pdf