On 20 June 2026, the Supreme Court dismissed Chhattisgarh’s appeal regarding landowner compensation. Previously, the Public Works Department occupied their land for nearly 25 years without acquisition. Thereafter, lower authorities awarded the affected landowners enhanced compensation and interest. Unsatisfied, the State challenged this enhanced compensation before the highest court. However, a vacation bench called the State’s legal challenge “absolutely frivolous.” Consequently, the bench imposed exemplary costs of Rs 2 lakh on the State.
Background
- The landowners discovered the occupation during demarcation proceedings and started proceedings under the Chhattisgarh Land Revenue Code seeking eviction.
- The High Court upheld the enhanced market value and held that the landowners were entitled to interest from 2 September 2006, the date they filed the eviction suit.
- The State then challenged the direction to pay interest before the Supreme Court.
The Supreme Court’s view
The Court noted that the State had unauthorisedly taken possession of private land and kept it for a prolonged period, and had not offered compensation even after the suit was filed. It refused to interfere. One report states that interest at 15 per cent a year will run on the compensation until it is paid in full.
Why it matters
- An owner whose land is occupied by a public body without acquisition can seek both recovery of the land and compensation, with interest for the period of delay.
- The State cannot take private property without authority of law and fair compensation. Article 300A protects this right.
- Courts may impose costs on public authorities that pursue frivolous appeals.
Landowners facing similar occupation should preserve survey records, demarcation reports and revenue entries, and act promptly because delay can complicate relief.
This update is for general information and is not legal advice. Please consult a qualified advocate before acting on any development discussed here. Apex Law Office LLP.
