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2026 Supreme(Cal) 66

IN THE HIGH COURT AT CALCUTTA 
SUJOY PAUL,CJ., CHAITALI CHATTERJEE (DAS), J. 
Mr. Subrata Hait – Petitioner 
Versus  
Sri Joydeb Manna, General Manager, (Operation), Indian Oil Corporation Limited & Anr. – Respondent
CPAN 118 of 2026 IN MAT 1959 of 2023 
Decided On : 08-05-2026

Advocates Appeared:
For the Petitioner: Mr. Indranil Nandi, Adv. Mr. Deba Prasad Samanta, Adv. Mr. Sayak Konar,Adv.
For the Respondent: Mr. Saptanshu Basu, Sr. Adv. Mr. Amit Meharia, Adv. Ms. Paromita Banerjee, Adv. Mr. Sayan Dey, Adv.

The doctrine of merger does not apply to the mere dismissal of a special leave petition, as it only operates when leave is granted and an appeal is heard. Statutory mandates requiring interest on delayed compensation for land acquisition must be strictly honored regardless of subsequent procedural developments.

Headnote:(A) Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 - Sections 10 and 11(1), (2) - Land acquisition compensation - Interest on delayed compensation - Statutory obligation to pay interest at six percent per annum on unpaid compensation if not deposited within the prescribed timeframe - Failure to include interest in calculation of compensation constitutes statutory violation. (Paras 12, 15)

(B) Doctrine of Merger - Applicability - Dismissal of petition for special leave to appeal by the Apex Court without granting leave does not attract the doctrine of merger - Previous orders of competent authority and the High Court remain enforceable when not merged into a judgment from the superior forum. (Paras 13, 14, 15)

(C) Contempt of Court - Willful and deliberate violation - Failure to adhere to mandated payment of compensation inclusive of interest as per statutory provisions during land usage proceedings - Contempt proceedings are maintainable where legal liability for interest is ignored by the authority. (Paras 1, 8, 9, 15)

Facts of the case:
The petitioner sought compensation for land and loss of crop value during the construction of a pipeline. Although the competent authority determined the compensation amount, it failed to provide interest. Following litigation through various forums, the landowner sought the payment of interest on the compensation. The authorities contended that they were not liable for interest, citing the absence of explicit directions in the final orders of the higher courts and asserting the doctrine of merger following the disposal of a special leave petition.

Findings of Court:
The court held that the statutory framework for land acquisition mandates the payment of interest on delayed compensation. The court further clarified that the dismissal of a special leave petition does not shield the authority from its statutory obligations, as the doctrine of merger is inapplicable to cases where leave to appeal was not granted.

Issues: 1. Whether the dismissal of a petition for special leave to appeal triggers the doctrine of merger to extinguish the underlying statutory obligation to pay interest. 2. Whether the non-payment of interest on compensation for land usage constitutes a willful and deliberate violation of judicial orders.

Ratio Decidendi: The court ruled that the doctrine of merger is strictly confined to instances where a superior forum grants leave and decides the appeal. Relying on statutory mandates, the court underscored that the obligation to pay interest on compensation arises from the enactment itself and persists irrespective of the procedural history, provided the liability remains valid and unsatisfied.

Result: Contempt application allowed; the authority is directed to comply with the order within four weeks.

Table of Content
1. procedural history and previous adjudications on compensation claims. (Para 1 , 2 , 3 , 4 , 5)
2. dispute regarding interest inclusion post-slp dismissal. (Para 6 , 7)
3. arguments concerning willful disobedience and bona fide compliance. (Para 8 , 9 , 10 , 11)
4. statutory interest under petroleum act and doctrine of merger. (Para 12 , 13 , 14)
5. mandatory interest payment per petroleum and minerals pipelines act. (Para 15 , 16 , 17 , 18)

JUDGMENT :

CHAITALI CHATTERJEE (DAS), J.

1. This contempt application has been filed under the Contempt of Courts Act, 1971 for willful and deliberate violation of the judgement and order dated 29.8 of 2025 passed by this court in MAT no. 1959 of 2023 in refusing to pay interest on the amount of compensation as computed by the competent authority by the order dated 22.5.2023, affirmed by the Division Bench.

2. Initially a writ petition was filed under Article 226 of the Constitution of India being WPA 19895 of 2021 praying for a writ of Mandamus directing the respondents particularly the respondent no.1 and their men and agents to forthwith pay the compensation in respect of the loss and damage suffered by the petitioner during the renovation/laying of the pipeline by the respondent no. 1 and further compensation beyond the period of two months from 20th July, 2020 the date of taking over possession of the said land to the petitioner. The further prayer made by the petitioner for a writ of Mandamus directing the respondents to forthwith and over the leasehold land of the petitioner after completing the project and if not already completed until such time the land is handed over back to your petitioner to continue to pay compensation in respect thereof to the petitioner.

3. Vide a judgement and order dated 23.3.2023 the writ Court disposed of the said writ petition by directing the competent authority to consider the prayer of the petitioner as contained in the letter dated February 7, 2022 as expeditiously as possible but positively within a period of eight weeks from the date of communication of the said order of giving an opportunity of hearing the petitioner dispose of the same by passing a reasoned order and communicate the same to the petitioner within a period of one week from the date of passing of the said order. In terms of such order the competent authority took up the dated 17.2.2022 for consideration and after a contested hearing by an order dated 22.5.2023 disposed of the said proceeding by holding that the petitioner is entitled to further compensation @ 450 /-per decimal for 60 days for the period from 28th May, 2022 to 13th June, 2022 that is for 754 days. It was further held by the competent authority that since the petitioner did not cultivate his leasehold land from 14th June, 2022 to the date of handing over the possession on 23.3.20 23 he is entitled to get presumptive crop value in terms of Petroleum and Minerals Pipelines (Acquisition of Right of user in land) Rules 1963.

4. The said order was assailed by filing a writ petition being WPA 13787 of 2023 and the writ Court by the judgement and order dated 25.8.2023 allowed the said writ petition by setting aside the order dated 22.5.2023 passed by the competent authority and granting liberty to the petitioner to appeal under Section 10(2) of the said Act before the concerned District Judge against the aforesaid order of the competent authority having territorial jurisdiction.

5. The petitioner being aggrieved thereby filed the appeal before the Division Bench of this court in MAT no. 1959 of 2023 and vide the order of the Appellate Court said judgement and order dated 25.8.2025 was set aside, directing upon the respondent no.1 IOCL to pay compensation as computed by the competent authority in the order dated 22.5.20 23 within a period of 30 days from the date of receipt of the server copy of the order and further granted liberty to the petitioner file an application before the concerned District Judge for enhance

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