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2026 Supreme(HP) 256

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
GURMEET SINGH SANDHAWALIA, CJ, BIPIN CHANDER NEGI, J.
Sohan Lal (Deceased) through LRs. – Appellant
Versus
HP Electricity Board and Others – Respondents
C.W.P. No. 8104 of 2010
Decided On : 18-03-2026

Advocates Appeared:
For the Appellants : Vinay Kuthiala, Diwan Singh Negi
For the Respondents: Sunita Sharma, Mohit Sankhyan, Balram Sharma

Co-owners of jointly acquired land entitled to same judicially determined enhanced compensation as awarded to one co-owner via reference and appeal, even without own application under Section 18 or 28A, to ensure substantial justice and avoid technical discrimination.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4, 11, 18, 28A and 54 - Writ petition for enhanced compensation at rate awarded to co-owner for jointly acquired land - Challenge to vires of Sections 18 and 28A not pursued - One co-owner filed reference under Section 18, compensation enhanced to approx. Rs.88,000/- per bigha by Reference Court, reduced to Rs.48,400/- per bigha on appeal under Section 54 - Other co-owner neither filed reference nor Section 28A application - Held: All co-owners entitled to benefit of judicially determined fair compensation to avoid discrimination on technical grounds and render substantial justice, paramount in eminent domain acquisitions where owners unwilling parties - No curtailment of interest despite delay as period for Section 28A reckoned from High Court judgment under Section 54. (Paras 14, 15, 16, 20)

(B) Interpretation of beneficial provisions - Advance policy to extend benefits to inarticulate landowners rather than curtail. (Para 17)

Facts of the case:
Joint land of two co-owners acquired under same notification for hydro power project - Award passed classifying land - One co-owner pursued reference and appeal, resulting in reduced enhanced rate - Other co-owner received LAC award without protest, later filed writ after appeal decision claiming same rate for half share - Application in appeal for deposit rejected holding procedure under Act to be followed.

Findings of Court:
Co-owners entitled to compensation at Rs.48,400/- per bigha with statutory benefits for acquired share - Needful to be done within three months.

Issues: Whether co-owner without reference entitled to enhanced compensation awarded to other co-owner for joint land; impact of delay and alternative remedies under Sections 18 and 28A.

Ratio Decidendi: Once fair compensation judicially determined for land under same notification, all co-owners must benefit equally; denial on technicalities amounts to discrimination - Substantial justice overrides strict procedures in compulsory acquisitions.

Result: Writ petition allowed.

Table of Content
1. petition seeks enhanced land compensation. (Para 1 , 2)
2. procedural history of co-owner compensation awards. (Para 3 , 4 , 5 , 6 , 7)
3. rejected deposit application for co-owner share. (Para 8 , 9 , 10)
4. writ despite delay and no reference. (Para 11 , 12 , 13)
5. co-owners share enhanced compensation benefits. (Para 14 , 15)
6. substantial justice requires uniform fair compensation. (Para 16)
7. section 28a three-month limit post-appeal. (Para 17 , 18 , 19)
8. relief granted without interest curtailment. (Para 20 , 21)

JUDGMENT :

BIPIN CHANDER NEGI, J.

1. By way of the present writ petition, the following reliefs have been sought:-

“b) That the respondents be directed to pay the full and correct market value and compensation to the petitioner and respondent No.3 for their acquired land inherited from Sh. Kali Ram at the rate of Rs.48,400/- per bigha along with statutory benefits, in the same manner as has been done in the case of persons whose land was acquired under the same notification under Section 4 of the LAND ACQUISITION ACT , 1894.

c) That Section 18 as well as Section 28A of the LAND ACQUISITION ACT may kindly be declared to be invalid and unconstitutional to the extent that the limitation prescribed therein for filing an application for seeking a reference or for payment of the correct market value of the acquired land is violative of the mandate of Article 31-A-(1) 2nd Proviso of the Constitution of India and these provisions of the LAND ACQUISITION ACT may kindly be quashed and held unconstitutional and invalid to this extent and the petitioner and proforma respondent may be declared to be entitled to receive the true and correct compensation for their acquired land.”

2. In view of the judgment delivered by a Coordinate Bench of this Court in CWP No. 3803 of 2010, titled Mohammad Ali Vs. Land Acquisition Collector , whereby vires of Section 18 as well as Section 28-A of the LAND ACQUISITION ACT , 1894 (for the purpose of brevity hereinafter referred to as the “Act”) were upheld to the extent of limitation prescribed therein, the petitioners have limited the relief claimed in the writ petition only to receive compensation. The same is evident from order dated 22.08.2025.

3. In the case at hand, the lands of Sh. Bahu Ram and Sh. Kali Ram, sons of Phindu, had been acquired by respondent No.1 for setting up the Ghanvi Hydel Power Project in Village Ghanvi, Rampur Busahr, HP. They both had an equal share in the land acquired, which is the subject matter of the present case.

4. Notification for acquisition under Section 4 of the Act was issued on 08.09.1988. After following the procedure laid down under the law. The Land Acquisition Collector (for short “LAC”) had passed an award under Section 11 of the Act on 20.11.1991. In the Award made by the LAC, dated 20.11.1991, Sh. Bahu Ram was awarded Rs.1,35,671/- whereas Sh. Kali Ram was awarded Rs.1,35,672/-. The LAC had determined the market value of the acquired land on the basis of classification of land.

5. Feeling aggrieved by the Award passed by the LAC, Sh. Bahu Ram along with 15 other land-owners had filed a land Reference bearing No.19-R/4 of 1997, under Section 18 of the Act. The Reference made by the LAC was heard and decided by the learned District Judge, Kinnaur at Rampur, HP. Vide award dated 07.03.2003, the District Judge had enhanced the compensation and had granted a uniform rate for the land acquired irrespective of the classification of land. The District Judge in the Reference had determined the market value of the land in question at approximately Rs.88,000/- per bigha.

6. During the pendency of the Reference Petition, Sh. Bahu Ram had died on 09.11.1998. Subsequent to his death, the original petitioner, proforma respondent No.4, Kedar Singh, Nirma Devi and Kamla Devi had filed an application for being impleaded as sons and daughters of late Sh. Bahu Ram. Along with the application so filed, a certificate issued by the Block Development O

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