New Delhi, Sep 20 (PTI) The Supreme Court on Friday said it was "regrettable" that the Himachal Pradesh government did not ensure payment of compensation to six land owners before taking possession of their land in Solan district which was acquired to provide a safety zone for a cement plant and mining areas.
The apex court directed the state to pay the compensation amount of Rs 3.05 crore to these land owners within 15 days.
A bench of Justices J B Pardiwala and Manoj Misra noted that the Himachal Pradesh government, as a welfare state, ought to have pro-actively intervened in the matter with a view to ensure that requisite amount towards compensation was paid at the earliest.
"We regret to note that the amount of Rs 3,05,31,095 determined as compensation under the supplementary award has not been paid to the land owners for a period of more than two years and the state of Himachal Pradesh as a welfare state has made no effort to get the same paid at the earliest," the bench said.
The top court delivered its verdict on an appeal filed by M/s UltraTech Cement Ltd arising out of the Himachal Pradesh High Court's July 2022 order passed in the matter.
The high court had directed the firm to pay the requisite amount towards compensation as determined in the supplementary award of May 2, 2022 passed by the Land Acquisition Collector, Arki, with liberty to recover the same from M/s Jaiprakash Associates Limited (JAL), if permissible under the legal relationship between the two entities.
The apex court observed that the delay in payment of compensation to the land owners after taking away ownership of the land from them was in contravention to the spirit of the constitutional scheme of Article 300A and the idea of a welfare state.
Article 300A of the Constitution says that no person shall be deprived of his property save by authority of law.
"The state government, in peculiar circumstances, was expected to make the requisite payment towards compensation to the land owners from its own treasury and should have thereafter proceeded to recover the same from JAL," the bench said.
"Instead of making the poor land owners to run after the powerful corporate houses, it should have compelled JAL to make the necessary payment," it said, adding, "It is regrettable that the state of Himachal Pradesh, being a welfare state, did not ensure payment of compensation to the respondent nos. 1-6 before taking possession of their land".
The bench noted in its verdict that during the pendency of the acquisition proceedings, JAL had entered into an agreement with UltraTech Cement Ltd for the transfer of the cement project in question.
"However, we take notice of the fact that the subject land was not covered under the list of assets transferred to the appellant (UltraTech Cement Ltd) under the scheme and remains in the ownership of the JAL till date," the bench noted.
It said disputes regarding the ownership of the subject land, if any, cannot be an impediment to the legitimate rights of the original land owners to receive compensation.
"Therefore, the contention of JAL that the appellant (UltraTech Cement Ltd) should pay the amount as determined under the supplementary award because the subject land was integral to the cement project is rejected," the bench said.
Setting aside the high court's order, the apex court directed the state government and the Land Acquisition Collector, Arki, to pay the compensation of Rs 3.05 crore to these land owners.
"The total amount paid by the state shall be recovered from the respondent no. 11 (JAL)," it said.