Landowners entitled to current market value of acquired land when compensation is delayed: Supreme Court

In 2005, the State acquired the lands in question from private owners (appellants) without offering any compensation.

Subsequently, in 2009 and 2010, the owners filed a petition in the Karnataka High Court seeking to quash the acquisition notifications issued by the State. Alternatively, the owners asked the Court to order the relevant authorities to allocate residential plots of equivalent size.

However, in June 2011, a bench of the High Court dismissed the plea raised by the owners and ruled that the acquisition notices could not be set aside at such a late stage and that there could be no order for allotment of alternative land to the owners. owners. .

The owners then filed a complaint with the state government and other authorities seeking a rehabilitation plan as compulsorily required by the agreement on the basis of which the land had been acquired. Landowners also called for alternative sites to be awarded and the benefits of the scheme to be awarded as soon as possible.

However, as their representation was not considered, they appealed to the High Court. In March 2017, the High Court disposed of the plea filed by the owners and directed the State and other authorities to consider the representation filed by the owners and expeditiously pass appropriate orders.

Failing to comply with the High Court’s directions, the owners filed a contempt of court plea against the state authorities.

Meanwhile, in April 2019, a Special Land Acquisition Officer (SLAO) approved an award for payment of compensation in respect of land belonging to the owners and decided to formulate the amount of compensation by changing the date of notification of the state government from 2003 to 2009. The SLAO decided the same based on the advice of the State Advocate General.

However, state authorities challenged the April 2019 award.

They argued that the delay in the acquisition process, which was not their fault, resulted in significantly higher compensation payments.

They held that the compensation should be based on the market value of the land as it stood on the date of the preliminary notification which was issued in respect of the acquisition of the land and that this date could not be altered retrospectively.

Landowners, on the other hand, argued that compensation should be determined based on the current market value of their acquired land.

However, in April 2022, a single judge of the Karnataka High Court set aside the award passed by the SLAO and directed the authorities concerned to make fresh awards after providing sufficient and reasonable hearing to the parties, within three months.

The owners then challenged the single judge’s decision by filing an appeal before the Division Bench of the High Court, which was also dismissed.

The landowners then filed a lawsuit with the Supreme Court.