District Administration must pay land acquisition compensation with statutory interest despite subsequent administrative bifurcation of districts.

The petitioner, a widow, sought compensation for Raiyati land belonging to her late husband, Govind Jee Pathak, which was acquired in 1989 for the construction of the Koilwar Dam in the then-undivided Bhojpur (Arrah) district.

Although the award was published on March 1, 1990, no compensation was paid for over three decades.

Following the bifurcation of the district in 1992, the petitioner was subjected to jurisdictional buck-passing between the authorities of the newly formed Buxar district and the parent Bhojpur district, with both claiming the other was responsible for payment.

1. Whether the respondent authorities are liable to pay compensation and interest for land acquired in 1989 after an award was published in 1990 but never disbursed.

2. Whether the bifurcation of a district absolves the original acquiring authority from its legal obligation to compensate the landholder.

Land Acquisition Act, 1894, specifically Section 11-A, which dictates the period for making an award.

Section 34 of the Land Acquisition Act, 1894, which mandates the payment of interest at 9% per annum from the date of taking possession until payment, increasing to 15% per annum if the delay exceeds one year.

The principle that the District Administration that initiated and concluded the acquisition process is duty-bound to ensure payment, regardless of subsequent administrative bifurcations.

The court characterized the thirty-six-year delay in payment as "arbitrariness and callousness" on the part of the State.

The court reasoned that since the acquisition and award publication (1990) were finalized by the old Bhojpur district prior to its bifurcation in 1992, the Bhojpur authorities remained legally obligated to ensure the petitioner received her dues.

The court dismissed the logic of the authorities shifting blame to the Buxar district, noting that the petitioner, a widow, could not be harassed or "made to run from pillar to post" due to internal administrative transitions.

It strictly applied Section 34 of the 1894 Act, concluding that the state cannot enjoy the land without paying both the principal compensation and the statutory interest accrued over the decades of default.

The court directed the Respondent Nos. 7 and 8 (DM and DLAO, Bhojpur) to calculate and pay the total compensation amount, including statutory interest as per Section 34 of the Act of 1894, within three months.

It further ordered the Bhojpur and Buxar administrations to hold a joint meeting within three weeks to settle any inter-district budgetary issues to ensure the petitioner is paid without further delay.