States » NorthPosted at: Nov 2 2026 8:23PM


Himachal Pradesh HC directs HPPCL to pay enhanced compensation to landowners affected by Sawra-Kuddu project

Shimla, Nov 2 (UNI)The Himachal Pradesh High Court has directed the Himachal Pradesh Power Corporation Limited (HPPCL) to pay enhanced compensation, along with all statutory benefits, to landowners whose properties were acquired through private negotiations for the Sawra-Kuddu Hydro-Electric Project in Shimla district.
The court held that the landowners were entitled to the enhanced compensation from the date of execution of their sale deeds, in accordance with the undertaking given by the project authorities.
Justice Sandeep Sharma, while deciding a batch of five petitions, filed by Jangvir Singh Dulta, Vijay Pal Dulta, Krishan Pal Dulta, Satpal Singh Dulta and Man Singh, observed that HPPCL was bound by its commitment to pay the difference in compensation if the rates awarded by the District Judge in reference cases were subsequently enhanced.
The petitions, decided on October 28, 2026, concerned private land acquired in 2008 and 2009 in the revenue villages of Hatkoti, Bharot and Ghunsa in Tehsil Jubbal, Shimla district, for construction of the Sawra-Kuddu hydroelectric project.
The court noted that the state government had issued a notification on August 27, 2005, under Section 4 of the Land Acquisition Act, 1894, for acquiring land for the project. Subsequently, awards dated July 18, 2007, September 25, 2007 and May 25, 2008, were passed by the Land Acquisition Collector for uncultivated land in the three villages. However, the petitioners' land was not acquired through formal acquisition proceedings but purchased by HPPCL through private negotiations. A committee constituted by the state government on July 16, 2008, had recommended a rate of Rs 161 per centiare for Bani land.
The landowners had declined the offer and sought compensation at rates applicable to land acquired for the Durga Mata Temple at Hatkoti.
Following negotiations, it was agreed that the initially settled price would be treated as an ad hoc amount and HPPCL would pay any difference arising from enhancement ordered by the District Judge in reference cases, along with interest at nine per cent per annum from the date possession was handed over until payment.
The High Court observed that the undertaking was subsequently approved by HPPCL's Board of Directors on January 21, 2009. Despite the District Judge enhancing compensation in reference proceedings, followed by modification of the enhanced amounts by the High Court in regular first appeals, the petitioners were not paid the corresponding difference.
HPPCL opposed the petitions, arguing that they were barred by delay and laches, pointing out that the enhancement had been ordered in 2015 and the landowners approached the court after more than a decade. It also contended that the petitioners should have approached the corporation immediately after the enhancement.
Rejecting the objections, Justice Sharma held that once HPPCL had specifically undertaken to pay enhanced compensation, the landowners were not required to submit fresh applications or make separate requests for the amount. The corporation was obligated to honour its commitment. The court also relied on an earlier judgment in the case of Sat Dev Singh versus State of Himachal Pradesh, in which similar directions had been issued for payment of enhanced compensation and statutory benefits. Allowing all five petitions, the High Court directed HPPCL to pay the enhanced compensation as determined by the District Judge and subsequently modified by the High Court in the relevant appeals, with effect from the date of execution of the sale deeds, along with all statutory benefits.
The court also referred to the Supreme Court's Constitution Bench ruling in Sunder versus union of India, which recognised the entitlement to interest on solatium.
UNI BN
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