Supreme Court Partially Allows Compensation Appeal in Land Acquisition Case

The case of K. Subbarayudu & Others v. The Special Deputy Collector (Land Acquisition) revolves around a land acquisition dispute where the appellants challenged the compensation awarded for their acquired lands. The appeal was filed against the judgment of the High Court of Judicature at Hyderabad, which had dismissed their appeal due to an inordinate delay of 3671 days.

Background of the Case

The Government of Andhra Pradesh issued a Notification under Section 4(1) of the Land Acquisition Act, 1894 on October 1, 1990, acquiring 32.77 acres of land in Nellepalli village for the foreshore submersion of Kandaleru Reservoir under the Telugu Ganga Project. The Land Acquisition Officer (LAO) conducted an inquiry and passed an award (Award No.12/91-92) on January 30, 1992. The compensation awarded was:

• Rs. 9,000 per acre for cultivable dry land.
• Rs. 7,000 per acre for cultivable waste land.
• Rs. 50-70 per lime tree.
• Rs. 32 per pomegranate tree.

The landowners took possession of the land on March 2, 1994, and received compensation. However, dissatisfied with the compensation, they sought reference under Section 18 of the Act. The Reference Court, through its order dated August 6, 2004, enhanced the compensation as follows:

• Rs. 12,000 per acre for cultivable dry land.
• Rs. 10,000 per acre for cultivable waste land.
• Rs. 100 per lime tree (up from Rs. 50-70).
• Rs. 32 per pomegranate tree (unchanged).

Despite the enhancement, the appellants filed an appeal in the High Court, seeking further enhancement. However, their appeal was dismissed due to a delay of 3671 days in filing.

Arguments of the Appellants (Landowners)

The appellants contended:

• The delay in filing the appeal was due to the belief that their co-villager Pullaiah, who was handling the legal matters, had already filed the appeal.
• They discovered the appeal was not filed only after their counsel, Sri Jaganmohan Raju, had passed away.
• In another similar case (L.A.S.S. No.46/2015), the High Court had condoned a delay of 3386 days, and a similar approach should be applied in their case.
• The compensation for pomegranate trees should be revised to Rs. 3,000 per tree, as awarded in C.A. Nos.11404-405 of 2016 related to the Somashila Project.

Arguments of the Respondent (Special Deputy Collector)

The respondent opposed the appeal, arguing:

• The delay of 3671 days was not sufficiently explained.
• The compensation for pomegranate trees in the Somashila Project case cannot be applied to this case, as the award in that case was given in 1999, whereas this case pertains to 1992.
• The High Court correctly exercised its discretion in declining to condone the delay.

Supreme Court’s Analysis and Judgment

The Supreme Court, comprising Kurian Joseph and R. Banumathi, ruled partially in favor of the appellants, stating:

1. Delay Condonation Should Be Considered in Land Acquisition Cases

• The Court noted that the appellants were agricultural landowners, and their livelihood depended on their land.
• The delay was due to miscommunication and should not entirely deprive them of fair compensation.
• The Court criticized the High Court’s inconsistent approach in similar cases, where delays had been condoned.

2. Compensation for Pomegranate and Lime Trees Revised

• The Court awarded Rs. 1,500 per pomegranate tree instead of Rs. 32.
• The compensation for lime trees was increased to Rs. 250 per tree (from Rs. 100).
• The revision took into account inflation and the cost of maintaining fruit-bearing trees.

3. Interest Waived for Period of Delay

• To balance equity, the Supreme Court ruled that while the appellants deserved enhanced compensation, they would not be entitled to interest for the 3671-day delay.

Final Judgment

• The Supreme Court partially allowed the appeal.
• The compensation for pomegranate trees was enhanced to Rs. 1,500 per tree.
• The compensation for lime trees was increased to Rs. 250 per tree.
• The appellants were entitled to solatium and statutory benefits, but no interest was granted for the delayed period.

Conclusion

The Supreme Court’s decision reflects a balanced approach—it ensured fair compensation for landowners while also maintaining judicial discipline in addressing delays. The judgment underscores that land acquisition cases must be handled with a pragmatic approach, keeping in mind the livelihood of affected farmers.

The ruling also clarifies:

• Delays in land acquisition appeals should be condoned in deserving cases.
• Compensation must reflect the cost of maintaining fruit-bearing trees.
• Equitable justice can be served by compensating landowners while denying interest for inordinate delays.

This case sets a precedent for future land acquisition disputes, ensuring that farmers receive just compensation even when appeals are delayed.

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