Himachal High Court Allows Sat Dev Singh Enhanced Compensation Despite Not Challenging Award

The Himachal Pradesh High Court has held that a landowner who secured enhanced compensation under an undertaking from the Himachal Pradesh Power Corporation Ltd (HPPCL) cannot be denied a further enhancement merely because he did not independently challenge the original land acquisition award. Justice Jyotsna Rewal Dua allowed the writ petition of Sat Dev Singh, ordering HPPCL to pay further enhancement with a caveat on interest.

The Long Road to Compensation

The dispute originates from the acquisition of land for the Renukaji Dam Project . In 2009, HPPCL acquired 17-15 bighas of Sat Dev Singh's land through private negotiation, paying Rs. 16,27,500. As part of the deal, HPPCL gave a written assurance dated 23.10.2009 that if the negotiated rates were enhanced in the future, the same enhanced rates would be paid to him. The assurance explicitly aimed to ensure voluntary sellers were not disadvantaged compared to those whose land was acquired through formal land acquisition proceedings.

When the Land Acquisition Collector announced Award No. 658 on 23.08.2012, fixing higher rates per bigha, Sat Dev Singh approached the High Court in CWP No. 2646 of 2025 . This writ was allowed on 30.07.2019, directing HPPCL to pay enhanced compensation as per the award. The judgment was affirmed by a Division Bench in LPA No. 64 of 2019 and the Supreme Court dismissed the Special Leave Petition on 14.10.2022.

Further Enhancement and the Defences Raised

Subsequently, in reference petitions and regular first appeals arising from the same Award No. 658 and a connected Award No. 659, the High Court enhanced the compensation to a uniform rate of Rs. 7 lakh per bigha irrespective of classification. This was confirmed in RFA No. 348 of 2018 decided on 05.12.2023. Based on this, Sat Dev Singh issued a legal notice on 23.09.2023 seeking further enhancement for his land. When HPPCL rejected the claim, he filed the present writ.

HPPCL opposed the petition on two grounds: constructive res judicata and the bar under Order 2 Rule 2 of the Civil Procedure Code . It argued that Sat Dev Singh had not challenged Award No. 658 under Section 18 of the Land Acquisition Act for 13 biswas of his land, and he failed to amend his earlier writ after the Reference Court's decision in 2018. Therefore, his claim was barred.

Court Rejects Plea of Constructive Res Judicata

The court categorically rejected these defences. It observed that the earlier challenge was exclusively for the 17-15 bighas acquired through negotiation, based on HPPCL's undertaking. The failure to independently challenge Award No. 658 for 13 biswas acquired under the Act did not estop him from claiming further enhancement for the negotiated land.

"Merely not assailing Award No. 658 qua 13 biswas of land acquired in accordance with provision of the Land Acquisition Act will not estop the petitioner from seeking compensation for his 17-15 bighas of land acquired through negotiative means, more so, in light of conclusion and findings already rendered in Sat Dev Singh."

The court further noted that HPPCL was a party to all subsequent proceedings and was fully aware that compensation under Award No. 658 had been enhanced to Rs. 7 lakh per bigha. It held HPPCL was duty-bound to inform the court of this fact.

"Respondent, being the project beneficiary, was party in all the proceedings... was duty bound to inform the Court that amount of compensation under Award No. 658 had actually been enhanced to Rs. 7 lacs per bigha."

Balancing Equities

While allowing the petition, the court balanced equities by denying 15% interest on the enhanced amount from 31.07.2019 (the date of the earlier decision) until the date of this judgment. The compensation payable was calculated with the assistance of counsel, resulting in a total amount of Rs. 35,52,1740 .

Implications

The ruling clarifies that a landowner who relies on a voluntary undertaking is not bound by the usual procedural bars of constructive res judicata when subsequent court decisions further enhance compensation for the same project. It reinforces that project authorities who give such undertakings cannot later deny the benefit of subsequent enhancements merely because the landowner did not independently challenge the original award. The judgment also underscores the duty of acquiring bodies to inform the court of all developments that affect compensation payable under their assurance.