Himachal Pradesh High Court Rules in Favor of Equal Compensation for All Affected Landowners

Landmark Judgment Ensures Fair Compensation to Petitioners Under the Land Acquisition Act

News Report:  

In a significant judgment passed on September 9, 2025, the Himachal Pradesh High Court has ruled that all landowners affected by the same land acquisition notification are entitled to fair compensation, as determined by the Supreme Court, irrespective of their participation in court proceedings. The decision came in response to a petition filed by Vishwa Nath Sharma and others, challenging the discrimination in the compensation awarded for land acquired for a Stadium-cum-Helipad in Rohru, District Shimla.

Justice Ajay Mohan Goel presided over the case, highlighting the principles of equity and fairness embedded in Section 28-A of the Land Acquisition Act, 1894. The petitioners contended that their land was acquired under the same notification as other landowners who received enhanced compensation determined by the Supreme Court. Despite being eligible, the petitioners' claim for similar compensation was rejected by the Collector, which the court deemed arbitrary and discriminatory.

The High Court quashed the impugned order dated January 17, 2023, instructing the respondents to recalibrate the compensation payable to the petitioners in alignment with the Supreme Court's judgment in Civil Appeal No. 1867-1872 of 2009, which awarded damages at 15% per annum on the market value of the land from July 1, 1984, to September 2, 1993.

Justice Goel emphasized that the State's stance of denying compensation to the petitioners on the grounds that they were not co-owners with those who approached the Supreme Court was unjustified. The judgment underscored that when the benefit of enhanced compensation has been extended to other landowners under the same acquisition notification, similar treatment must be afforded to the petitioners to avoid discrimination.

The court's decision resonates with the Supreme Court's perspective in Narendra v. State of Uttar Pradesh, advocating for fair compensation to all affected landowners, particularly in compulsory acquisition scenarios. The High Court's ruling reinforces the equitable principles intended by Section 28-A, ensuring that all landowners deprived of their property receive just compensation.

This landmark judgment marks a victory for the petitioners, setting a precedent for future cases involving land acquisition and compensation disputes. It reflects the judiciary's commitment to upholding the rights of landowners and ensuring that justice prevails in matters of public acquisition.

Bottom Line:

Land Acquisition - Compensation determined judicially as fair compensation must be extended to all landowners affected by the same notification, irrespective of whether they approached the court or not. 

Statutory provision(s): Land Acquisition Act, 1894 Section 28-A

Vishwa Nath Sharma v. State of Himachal Pradesh, (Himachal Pradesh) : Law Finder Doc Id # 2780213