Sh. Shardha Nand Since Deceased Through His Lr Sh. Subhash Chand. vs The Land Acquisition Collector

Court
Delhi High Court

$~19
* IN THE HIGH COURT OF DELHI AT NEW DELHI
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Date of decision: 03 September, 2026
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Uploaded on: 05 September, 2026
# CNR No. DLHC013083532018
+ W.P.(C) 10278/2018
SH. SHARDHA NAND SINCE DECEASED THROUGH HIS LR
SH. SUBHASH CHAND. .....Petitioner
Through: Mr. M. M. Singh and Mr. Mohit, Advs.
(M: 9818016311)
versus

THE LAND ACQUISITION COLLECTOR .....Respondent
Through: Mr. Sanjay Kumar Pathak, Standing
Counsel with Mr. Sunil Kumar Jha &
Mr. M.S. Akhtar, Advs. (M:
9711684779)
CORAM:
JUSTICE PRATHIBA M. SINGH
JUSTICE VIKAS MAHAJAN
Prathiba M. Singh, J. (Oral)
1. This hearing has been done through hybrid mode.
2. The present petition has been filed by Shri Shardha Nand, who is since
deceased through his legal heir Mr. Subhash Chand, and Mr. Subhash Chand,
in his individual capacity, both of whom are the sons of Late Shri Ishwar
Singh.
3. As per the Petitioners, they are illiterate farmers, who are entitled to
interest on the amount of compensation paid to them in respect of the part of
the land, which was acquired in terms of the award, which is explained in
Paragraph 18 of the writ petition in the following terms.
“18. That from the RTI and other
proceedings/documents it is revealed that the
respondent made the payment of land measuring 1 bigha
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and 10 biswas to Sh Sheoraj who was entitled for only
for the compensation of 19 biswas. Therefore the
payment of compensation of land measuring 11 biswas
belonging to the petitioners were wrongly made to said
Sh Sheoraj, who fraudulently received the same
concealing the material facts before the respondent as
well as before the ADJ concerned in proceedings u/s 18
of LA Act. The copy of judgment dated 28.11.2008 is
annexed as ANNEXURE - P23.”

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4. The possession of the land in question was taken on 29 May, 2006.
The compensation unfortunately came to be paid to the wrong person and,
hence, both the Petitioners had made a representation to the LAC for release of
the compensation to them. The said application for compensation was decided
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by the LAC vide order dated 28 March, 2016 wherein the LAC observed as
under:
“Shri Subhash Chand claim that out of above Acquired
Land his share of land is to the extent of 1 bigha 2 biswa
and this amount has been paid to Sh. Deepak, his cousin
brother and to Sh. Sheo Raj. He has shown a copy of
Filed Book prepared during 1981 when the
consolidation is reportedly carried out and a copy at
Form P-4 which is Khasra Girdhwari being maintained
as per the DLR Rules 1962 showing the khasra
no.128/6/2 area to 2 bigha 1 biswa as his recorded land.
Be that so, the area acquired is 1 bigha 17 biswa from
khasra no 128/6/1 to 3 min, and while passing the
award, the area in khasra no. 128/6/1, 128/6/2, and
128/6/3 is not-shown separately and the award is
notified as 128/6/1 to 3 min. Shri Subhash Chand would
have raised this issue at the time of passing the award
and at this belated stage, the request for compensation
payment for his part, of land, cannot be accepted now
after the compensation amount has been paid. The
petitioner has also not dispute the issue when the matter
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was adjudicated by the ADJ Court where the amount
has been enhanced and paid to Shri Deepak. The
records available with LAC branch shows that the
award is passed for an area of 1 bigha 17 biswa and
payment has been issued of Shri Deepak S/o Sheo Raj.
Therefore Shri Subhah Chand may approach Court
of Low for recovery of compensation amount from Shri,
Deepak S/o Sheo Raj.”

5. As per the LAC, the Petitioners were directed to approach the
appropriate Court for recovery of the compensation amount from Mr. Deepak,
to whom the payment was wrongly paid. The said order was again challenged
by the Petitioners before the Public Grievances Cell (hereinafter, ‘ PGC ’),
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wherein vide order dated 23 November, 2016, the PGC directed as under:
“3. Relevant facts emerging during the hearing

3.1 During the hearing on 15/11/2016 though the
complainant was present, but there was no
representative present on behalf the department. As
such, today's hearing in this grievance case was
rendered infructuous.

3.2 However, during the discussion with the
complainant, it was brought in notice of Commission
that entries in respect of area of Khasra No.128/6/1 and
128/6/3 were given wrong in in Naksamutzamin
prepared after award and at the lime of payment of
compensation to the recorded owner. Due to this error
on the part of LAC / staff, the compensation of acquired
land was paid by LAC inadvertently to owners of the
land wrongly mentioned in the above said Khasra Nos.
instead of a rightful recorded owner of acquired land in
Khasra No.128/6/3. I

4. Directions of the PGC
4.1 The Additional District Magistrate (ADM), District
Central, Revenue Department is directed to rectify the
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land record of LAC and take action for withdrawing
the compensation paid to unlawful receivers and to
make payment to the complainant, a rightful recorded
owner of acquired land.
4.2 The complainant is also advised to represent
his case before LAC, District Central, Revenue
Department mentioning all details of acquired and
unacquired land in Khasra No..128/6/1, 128/6/2 and
128/6/3 ”

Thus, the PGC directed the concerned ADM to recover the compensation
from the unlawful receivers and pay to the Petitioners.
6. Subsequently, the LAC took action against the unlawful receiver of the
compensation and paid the compensation to the Petitioners, which is duly
pleaded in Paragraph 16 of the writ petition in the following terms:
“16. That thereafter finally on 14.12.2017 the
respondent paid the compensation amount to the
petitioners vide cheques bearing no.257668 and 257667
for Rs.2,48,141/- and Rs.2,48,142/- respectively after
recovering the same from the Sh Sheoraj owner of
Khasra No. 128/6/3 to whom the same was paid
illegally. Upon receiving the payments the petitioners
on 08.01.2018 made an application before the
respondent for payment of interest on the compensation
amount. The copy of said application along with
reminder is annexed as ANNEXURE-P20&P21.”

7. Thus, a sum of Rs.2,48,141/- and Rs.2,48,142/- as compensation duly
stands paid to the Petitioner Nos.1 and 2. The only outstanding issue in the
present case is in respect of interest. Ld. Counsel for the Petitioners submits
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that the payment was made to the Petitioners only on 14 December, 2017
and hence, the Petitioners are entitled to statutory interest for the delayed
period.
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8. Mr. Jha, ld. Counsel for the LAC submits that in fact, the LAC had
initiated recovery proceedings against the earlier person to whom
compensation was paid. Thus, non-payment was only an inadvertent error.
9. Heard. In the overall facts and circumstances, it is clear that the award
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is of the year 1984-85 and the possession was taken on 29 May, 2006.
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However, compensation was only paid to the Petitioners on 14 December,
2017. The Petitioners are thus entitled to statutory interest under Section 34
of the Land Acquisition Act, 1894.
10. Accordingly, let the LAC release the interest in terms of Section 34 of
the Land Acquisition Act, 1894 within a period of three months for the period
of delay. If the amount is released within a period of three months, interest
shall be payable would be @ 9% per annum in terms of Section 34 of the Land
Acquisition Act, 1894. However, after expiry of three months, the rate of
interest shall be @ 15% per annum.
11. Insofar as the LAC is concerned, the LAC is free to take an action
against the unlawful receiver, in accordance with law.
12. The petition is disposed of in the above terms. Pending applications, if
any, are also disposed of.

PRATHIBA M. SINGH
JUDGE



VIKAS MAHAJAN
JUDGE
dk/ck
SEPTEMBER 3, 2026/

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