Landowner Can Claim Further Compensation Enhancement Despite Not Challenging Original Award: HP High Court

The Himachal Pradesh High Court has held that a landowner who secured enhanced compensation under an undertaking given by the Himachal Pradesh Power Corporation Ltd. (HPPCL) cannot be denied a further enhancement merely because he did not independently challenge the original land acquisition award.

Justice Jyotsna Rewal Dua allowed the writ petition filed by Sat Dev Singh, holding that his failure to challenge Award No. 658 concerning 13 biswas of land acquired under the Land Acquisition Act, 1894 did not prevent him from seeking enhanced compensation for 17-15 bighas of land acquired through negotiations. The Bench held:

“Merely not assailing Award No. 658 qua 13 biswas of land acquired in accordance with provision of the Land Acquisition Act will not estop the petitioner from seeking compensation for his 17-15 bighas of land acquired through negotiative means.”

The petitioner had acquired the 17-15 bighas of land through HPPCL's negotiations for the Renukaji Dam Project for Rs. 16,27,500. HPPCL undertook to pay enhanced compensation if the rates for land acquired for the project subsequently increased.

The Land Acquisition Collector passed Award No. 658 in 2012. The petitioner later secured enhanced compensation for his negotiated land based on HPPCL's undertaking. The Supreme Court subsequently dismissed HPPCL's challenge to that decision.

The Reference Court and later the High Court further enhanced the compensation under Award No. 658 to Rs. 7 lakh per bigha, irrespective of the classification of the land. The petitioner then sought the benefit of this further enhancement.

HPPCL opposed the claim, arguing that the principles of constructive res judicata and Order II Rule 2 of the Code of Civil Procedure, 1908 barred the petition.

The Court rejected the objection. It held that the petitioner's failure to challenge Award No. 658 concerning 13 biswas of land acquired under the Land Acquisition Act did not prevent him from seeking further enhancement for the 17-15 bighas acquired through negotiations.

It noted that the Reference Court and the High Court had subsequently enhanced the compensation under Award No. 658 to a uniform Rs. 7 lakh per bigha, irrespective of the classification of the land. It held that this subsequent enhancement entitled the petitioner to claim the corresponding benefit under HPPCL's undertaking.

Further, the Bench noted that HPPCL had participated in the earlier proceedings and knew that the compensation under Award No. 658 had increased to Rs. 7 lakh per bigha. It therefore held that HPPCL could not deny the petitioner the benefit of the further enhancement for his negotiated land.

Accordingly, the High Court allowed the writ petition. However, to balance the equities, it denied the petitioner 15% interest on the enhanced compensation from 31 July 2019 onwards.

For the Petitioner: Mr. Bimal Gupta, Sr. Advocate with Mr. Satish Sharma and Ms. Komal Chaudhary, Advocates.

For the Respondents: Mr. Hamender Singh Chandel, Advocate.