States » NorthPosted at: Oct 8 2026 7:15PM


Himachal HC awards 7.5 pc interest to landowners over delayed NH compensation

Shimla, October 8 (UNI) The Himachal Pradesh High Court has directed the authorities to pay interest at 7.5 per cent per annum to two landowners on compensation for land acquired for the construction and four-laning of National Highway-72 between Paonta Sahib and Ballupur in Sirmaur district, holding that the compensation amount was deposited a year after the award.
Justice Sandeep Sharma, in a judgment delivered on October 5, allowed a petition filed by Deepak Bareja and another landowner and directed respondents to calculate and pay interest on the amount payable to the petitioners for the period from February 14, 2022 to February 16, 2023.
The court directed that the interest amount be deposited with the competent authority within two weeks, after which it would be released to the petitioners on an application.
It further ordered that if the amount was not deposited within the stipulated period, the petitioners would be entitled to an enhanced interest rate of 18 per cent per annum from the date of the order until actual payment.
The petitioners had sought compensation for acquisition of their land in village Bhuppur-II, Tehsil Paonta Sahib, for construction, widening and four-laning of NH-72, Paonta Sahib-Ballupur.
The competent authority had passed award on February 14, 2022.
According to the judgment, the petitioners were entitled to Rs 3,78,76,160 under the award, with Rs 1,89,38,080 payable to each.
The entire compensation amount of Rs 43.27 crore relating to the acquired land was deposited with the competent authority on February 16, 2023, 367 days after the award.
The amount was subsequently not released to the petitioners on instructions issued by the concerned authorities pending arbitration proceedings.
The petitioners eventually received the compensation during the pendency of the writ petition.
The authorities argued that the award had been challenged in arbitration and that there had also been delay in handing over possession of the acquired land, which allegedly affected construction of the highway.
The High Court, however, rejected the contention that the delay in handing over possession could be a ground to deny interest. It observed that under Section 3D of the National Highways Act, land vested absolutely in the Central Government upon publication of the declaration.
The court also noted that under Section 3H, the compensation amount determined under Section 3G was required to be deposited with the competent authority before possession could be taken and that the competent authority was thereafter required to pay the amount to the persons entitled to it.
The court held that there was no stay against the award during the period from February 14, 2022 to February 16, 2023 and that the petitioners were entitled to interest for the 367-day delay in depositing the compensation.
The court accordingly allowed the petition and directed payment of interest at 7.5 per cent per annum on the amount falling to the petitioners' share under the February 14, 2022 award.
UNI BN
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