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2026 Supreme(Online)(P&H) 78082

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Harkesh Manuja, J
Om Parkash – Appellant
Versus
State Of Haryana – Respondent
CWP-39172-2025



Advocates:
For the Appellants/Petitioners: Chanderhas Yadav
For the Respondents: Abhinav Kalia

The entitlement to annuity benefits under a government policy is an integral part of an acquisition award, and the time limit for claiming such benefits is directory in nature. Additionally, if the State causes delays in compensation disbursal through misleading procedures, it must pay statutory interest under Section 34.

Headnote:(A) Land Acquisition Act, 1894 - Section 11, 34 - Annuity Scheme benefits - Delayed disbursal of compensation - Interest on compensation - Failure of respondent to release annuity benefits in accordance with the Award despite clear stipulation - Condition to submit application within six months under policy is directory and not mandatory - Respondents failed to provide timely information regarding inapplicability of Land Pooling Scheme - Petitioner entitled to interest from date of possession until actual disbursal of compensation.

Facts of the case:
The petitioner’s land was acquired for a public purpose. An award was passed on 04.07.2014 which included annuity scheme benefits. The possession was taken the same day, but compensation was delayed until 06.10.2015 as the landowner was led to apply for a Land Pooling Scheme which the respondents later claimed was inapplicable, without communicating such fact or processing the application, causing a delay in the release of compensation.

Findings of Court:
The court found that the annuity benefits were an integral part of the award and their release was a statutory obligation. It further observed that the requirement to apply within six months is directory. Due to misleading the petitioner regarding the Land Pooling Scheme, the respondents were held responsible for the delay in compensation.

Issues: Whether the petitioner is entitled to annuity benefits despite failing to apply within six months and whether the petitioner is entitled to interest on the delayed compensation.

Ratio Decidendi: Once annuity benefits are incorporated in the award, a statutory obligation is cast upon authorities to release them without requiring a separate application. Delays caused by the administration’s misleading actions regarding schemes make the state liable for statutory interest on delayed compensation.

Result: Petition allowed.

HARKESH MANUJA, J. (ORAL)

By way of present writ petition, the short prayer made on behalf of the petitioner/landowner is for release of statutory interest in his favour on account of delayed disbursal of the amount of compensation, besides award of annuity benefits to him in accordance with the award dated 04.07.2014 passed by the Land Acquisition Collector, Urban Estate Department, Rohtak, (for short ‘the LAC’).

Briefly stating, some land owned by the petitioner, situated within the revenue estate of Village Jhajjar, District Jhajjar was acquired vide notifications dated 07.07.2011 and 06.07.2012 issued under Sections 4 and 6 of the Land Acquisition Act, 1894 (for short ‘the Act’) respectively, for the public purpose namely, for development of Institutional and partly Commercial, road widening and green belt of Sector 10, Jhajjar. Award under Section 11 of the Act was announced on 04.07.2014, thereby determining the market value of the land besides awarding annuity scheme benefits @ Rs.21,000/- per acre per annum for a period of 33 years in accordance with the government gazette notification dated 09.11.2010. The relevant para 4 of the award is extracted hereunder:-

“4. MARKET VALUE:-

The Deputy Commissioner-cum-Collector, Jhajjar was requested to supply the market value of land under acquisition. The Deputy Commissioner-cum-Collector, Jhajjar supplied the market value of the land under acquisition as per provisions of LARR Act-2013 vide his memo No. DRA/628-34 dt. 17.06.2014 as Rs. 30 Lacs per acre for all kinds of land and after that rate identify vide order dt. 01.07.2014 of the P.S.U.E 28,13,951/- per acre for all kinds of land. As per section 26(2) of LARR Act-2013, the awarded market value shall be multiplied by a factor to be specified in the first scheduled. But so far the govt. has notified the factor, as such after notification by the government, the difference of compensation is applicable, shall be awarded.

I have inspected the land under acquisition along with the revenue staff of my office before announcement of the Award. Keeping in view the location, situation and all other factors, I observe that the market value, i.e. 28,13,951/- per acre for all kinds of land, supplied by the P.S.U.E, Haryana are fair and adequate, and I award the same alongwith the Annuity Scheme of 21,000/- per acre per annum for a period of 33 years, published vide government gazette dated 9-11.2010 which will be increased by a fixed sum of Rs. 750/- per acre every year.”

In the award, the petitioner/landowner was also recorded to be entitled for the benefits of Land Pooling Scheme. Clause 8 of the Award in this regard is extracted hereunder:-

“8. LAND POOLING SCHEME:- The landowner(s) opting for the Land Pooling Scheme will be provided developed residential site in the form of residential plots measuring 1000 sq. yards and commercial site measuring 100 sq. yards against each one acre of land acquired in lieu of the compensation package and all the benefits admissible under the R & R Policy’ of the Government, at the time of first floatation of the residential sector for which land of the applicant has been acquired:

The landowner(s) would be eligible to participate in the Land Pooling Scheme only if a minimum of 1000 sq yards or more of his/their land is acquired. The details of the land pooling scheme are given in the Haryana Govt. Urban Estate Department notification dt. 10 Spt. 2012.”

Leaned counsel for the petitioner submits that in terms of the award dated 04.07.2014, the petitioner submitted application before the LAC for seeking benefit of Land Pooling Scheme and the same remained pending consideration; whereas on the other hand, the possession of the acquired land was taken over by the respondents on the date of passing of the Award itself. He points out that compensation in terms of the aforementioned award was neither released in favour of the petitioner/landowner at the time of passing of the award nor even when the possession

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