The Himachal Pradesh High Court has ordered the NHAI and Union of India to pay 7.5% interest to landowners for a 367-day delay in compensation for land acquired for the NH-72 expansion project in Sirmaur district.
The Himachal Pradesh High Court has directed the Union of India and the National Highways Authority of India (NHAI) on Thursday to pay interest to landowners on compensation that was delayed for land acquired for the four-laning and expansion of National Highway-72 under the Paonta Sahib-Ballupur bypass project in Sirmaur district.
Justice Sandeep Sharma, while hearing a petition filed by Deepak Bareja and another landowner, directed the authorities to pay interest at the rate of 7.5 per cent per annum for the 367-day delay between February 14, 2022, and February 16, 2023.
Case Background and Compensation Delay
The land in question is situated at Mohal Bhuppur-II in Paonta Sahib tehsil of Sirmaur district and was acquired under the National Highways Act, 1956.
The Competent Authority for Land Acquisition (CALA) had passed Award No. 3/2022 on February 14, 2022, determining the petitioners’ share of compensation at Rs 3,78,76,160. However, the amount was not deposited with the CALA by the Central Government until February 16, 2023, resulting in a delay of more than a year.
The court also noted that even after the amount was deposited, its disbursement was withheld pursuant to administrative instructions in view of arbitration proceedings initiated by the NHAI. The arbitration proceedings were subsequently dismissed.
Court Rejects NHAI’s Contention
The NHAI had contended that the petitioners themselves had delayed handing over possession of the acquired land, resulting in an increase in the cost of construction and causing delay in the project.
Rejecting the contention, the court observed that under Section 3D of the National Highways Act, the acquired land vests absolutely in the Central Government upon publication of the acquisition notification. Therefore, the dispute relating to physical possession could not be made a ground to deny interest on delayed payment of compensation.
Final Order and Timeline
Justice Sharma directed the respondents to calculate the interest payable to the petitioners and deposit the amount within two weeks from the date of the order.
The court further ordered that in case the authorities fail to comply with the direction within the stipulated period, the amount would carry enhanced interest at the rate of 18 per cent per annum from the date of the order until actual payment.
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