Summary
The landowner was entitled to additional compensation for the omitted parcel for 84 months at not less than 5% of the award value per month, rather than the two months allowed by the authorities. The High Court’s two-month payment deadline was not a restriction on the compensable delay. Arbitration was unnecessary given the earlier Supreme Court directions. Outstanding sums attracted 7% simple annual interest and were payable within eight weeks.
Issues
- Whether a two-month payment deadline limited additional compensation to two months.
- Whether the landowner had to pursue arbitration despite the earlier Supreme Court directions.
- What period, adjustment, payment deadline and interest applied.
Provisions considered
- Section 20F(2), second proviso, Railways Act, 1989The earlier Supreme Court directions recognised additional compensation for delay in making the award at a rate not less than 5% of award value for each month. The omitted parcel attracted the specified 84-month period here. (¶¶ 11, 12, 13)
Held
- The High Court’s earlier direction to pay within two months fixed a compliance deadline, not the duration for which additional compensation was due. Limiting the allowance to two months misread that order and the Supreme Court’s earlier ruling. (¶¶ 4, 5, 6, 10, 11, 12)
- Similarly situated landowners under the same acquisition had received additional compensation covering the actual delayed period. The appellant could not be treated differently by an unexplained restriction to two months. (¶¶ 7, 9)
- The earlier Supreme Court order had clarified the applicable compensation basis for delay in making the award. The High Court therefore had no reason to relegate the appellant to arbitration to determine that entitlement. (¶¶ 11, 12)
- For the left-out parcel, additional compensation was awarded at least at 5% of award value for each month over 84 months, with credit for the two months already paid. The balance must be released within eight weeks. Simple interest at 7% annually ran on the outstanding amount from when due and payable until realisation. (¶ 13)
- The appeal was allowed on those terms, with each party bearing its own expenses. The 18% interest and higher-rate relief sought were not the rates granted. (¶¶ 2, 13, 14)
Result
Appeal allowed: additional compensation for 84 months at not less than 5% per month of award value, adjusting the two months paid. Balance due within eight weeks with 7% simple annual interest from due date to realisation; own expenses.