The Supreme Court held that the acquisition proceedings failed ...

Land acquisition flouted compensation norms - Govt took land before paying owners, company didn't foot bill.

Case Laws     Indian Laws

September 24, 2024

The Supreme Court held that the acquisition proceedings failed to comply with the statutory requirement of paying full and final compensation to the landowners before taking possession of their land, as mandated by Section 38 of the Companies Act, 2013. The Court observed that the State of Himachal Pradesh regrettably took possession of the land before ensuring payment of compensation to the respondents, who had to approach the High Court for directions to pass a supplementary award. Additionally, Section 41 of the Land Acquisition Act, 1894, necessitates an agreement between the government and the company for whose purpose the land is acquired, ensuring payment towards the cost of acquisition by the company before the land transfer. However, in this case, the land was transferred to the company before determining the compensation amount through a supplementary award, contravening both statutory provisions. Consequently, the Supreme Court set aside the impugned High Court order and allowed the appeal.

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