Compensation delay is a boon for landowners

Hyderabad: In a significant ruling, the Hyderabad High Court has paved the way for those landowners who have given their properties for public purpose in both TS and AP states, and are waiting for compensation, to claim compensation under the Land Acquisition Act, 2013.

The court has held that though the compensation awards were made under Section 11 of the Land Acquisition Act, 1894 in the year 2013, if the compensation was not paid to them even after commencement of new Act in the year 2014, they were entitled to extension of benefits in the form of higher compensation under the Act, 2013.

A division bench comprising Acting Chief Justice Ramesh Ranganathan and Justice M. Satyanarayana Murthy was disposing of a batch of appeals by Special Deputy Collector and Land Acquisition Officer of Metro Rail Project and Hyderabad Metro Rail Limited, challenging the orders passed by two single judges in favour of property owners whose lands were acquired for the Metro Rail.

The bench found that the awards were actually made under Section 11 of the Act 1894 in December, 2013, before the new Act came into force on Jan 1, 2014.

N. Sreedhar Reddy, former special counsel for the revenue department, said that though the order was issued in cases related to the Metro Rail Project, it will also enable similarly-placed persons to seek compensation for their lands given to various projects in both the states.

The bench, in its 152-page judgment, made it clear that none of the property owners has been paid compensation under the Act 1894, pursuant to the awards passed under Section 11 of the Act 1894, before the new Act came into force.

A single judge held that the awards, made prior to the commencement of the 2013 Act and communicated after the Act 2013 came into force, were ante-dated.

Another single judge held that if a majority of the landowners have not been paid compensation before commencement of the new Act, they would then be entitled to higher compensation under Section 24(2) of the new Act.

The bench held that the awards have not been ante-dated and were actually made under Section 11 of the 1894 Act in December, 2013, before the commencement of the new Act.

The bench directed the LAO to pay the enhanced compensation as per the new Act within four months in cases where possession of the lands has already been taken and compensation paid under the Old Act.