SC Says Compensation, Interest in Land Acquisition Cannot Depend on Financial Burden
Apex court upholds landowners’ rights, refuses to revisit earlier ruling despite high financial implications.
NEW DELHI: The Supreme Court on Wednesday reaffirmed that compensation and interest payable in land acquisition cases cannot be determined based on the financial burden on authorities, underscoring the constitutional mandate of providing just compensation to landowners.
A bench led by Chief Justice Surya Kant and Justice Ujjal Bhuyan made the observation while dismissing a review plea filed by the National Highways Authority of India (NHAI) against an earlier ruling on compensation benefits.
The court held that solatium and interest are integral components of fair compensation and cannot be curtailed merely due to the scale of financial liability involved. It emphasised that constitutional guarantees cannot be diluted on such grounds.
Rejecting the NHAI’s argument regarding the substantial financial impact, the bench stated that projected costs do not constitute a valid basis for revisiting judicial decisions. It also clarified that interest payable to landowners would follow provisions under the Land Acquisition Act, which provide a higher rate compared to the NHAI framework.
At the same time, the court maintained that while landowners are entitled to these benefits, settled cases that have already attained finality cannot be reopened. It stressed the need to balance individual rights with legal certainty to avoid prolonged litigation.
The ruling reinforces earlier judgements that extended compensation benefits retrospectively, while setting clear boundaries to prevent reopening of concluded claims.
