Delhi High Court

LAC Directed to Release Balance Compensation as per its own Minutes of Meeting Within Two Months.

Dr Om Prakash Kharbanda & Anr. vs Adm/Lac, Distt. North And Anr

Delhi High CourtJUDGMENT: April 23, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioners, co-owners of land in Village Holambi Kalan, sought the release of withheld compensation payments under Award No. 16/03-04 and Supplementary Award No. 16A/04-05

Source reference: paras 2, 4

While the initial compensation was reduced via a review award dated 14th July 2004, the Supreme Court subsequently set aside said review in Civil Appeal No. 6637/6638 of 2010 on 17th October 2019

Source reference: paras 5, 7

Following contempt proceedings in the Supreme Court, minutes of a meeting dated 4th January 2021 were circulated detailing unpaid amounts due to affected persons, including the Petitioners

Source reference: paras 8-9

The Respondents (LAC) filed a counter-affidavit claiming that payments of Rs. 6,38,798/- each had already been made to the Petitioners on 29th March 2022, rendering the petition infructuous

Source reference: para 11

The Petitioners disputed this, asserting that significantly higher amounts remain due based on the LAC’s own internal minutes

Source reference: para 13
02

Issues

1. Whether the Petitioners are entitled to further compensation beyond the payments made on 29th March 2022, in light of the Supreme Court's order setting aside the review award

Source reference: para 10, 15

2. Whether the Land Acquisition Collector (LAC) is obligated to release payments in strict accordance with the minutes of the meeting dated 4th January 2021

Source reference: para 16-17
03

Law Applied

The Court's decision is grounded in the Land Acquisition Act, 1894, specifically regarding the finality of Awards and the obligation of the state to pay determined compensation

Source reference: para 5

It further applied the principle of judicial hierarchy, acknowledging that once a review award is set aside by the Supreme Court, the original compensation levels must be restored

Source reference: para 7

The Court also emphasized the duty of litigants to disclose material facts (such as partial payments received) and the state's duty of transparency in accounting for public funds

Source reference: para 14-15
04

Reasoning

The Court observed a dual failure: the Petitioners failed to fully disclose the receipt of partial compensation (Rs. 6,38,798/- each), while the LAC remained silent and failed to explain the discrepancy between the amount paid and the higher figures recorded in their own minutes of meeting dated 4th January 2021

Source reference: para 14-15

The Court reasoned that since the Supreme Court had struck down the reduction of compensation, the LAC was bound by its own internal assessment of the "affected persons" and the corresponding dues identified during the contempt proceedings

Source reference: para 9, 15

Consequently, the Court found that the mere payment of some amount did not necessarily satisfy the total liability if the LAC's records indicated a higher outstanding balance

Source reference: para 16
05

Holding

The Court disposed of the petition by directing the LAC to release any remaining amounts due to the Petitioners, in terms of the Minutes dated 4th January 2021, within two months

The Court held that failure to comply within the stipulated timeline would attract liability for higher interest; Liberty was granted to the Petitioners to move an application if the payment is not realized

Source reference: para 17, 19
Delhi High Court

Original Court PDF

Dr Om Prakash Kharbanda & Anr.vsAdm/Lac, Distt. North And Anr

Delhi High Court · April 23, 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment