HC upholds right to land compensation reference

The High Court of Jammu & Kashmir and Ladakh has ruled that landowners cannot be denied their statutory right to seek a reference under Section 18 of the J&K Land Acquisition Act on the grounds of limitation if compensation awarded for acquired land has not been paid.

The Bench of Justice Javed Iqbal Wani observed that the limitation period begins only once the compensation has been paid or the award notice has been served. “Where compensation has neither been paid nor accepted by the landowners, their right to seek reference cannot be defeated by rejecting the application on the ground of limitation,” the Court noted.

The case involved petitioners claiming ownership of land in Pahalgam acquired for the Pahalgam Development Authority. The Collector Land Acquisition had passed an award in 1982, but the petitioners were neither served with notice nor paid the compensation. They sought alternate land under Section 32 of the Act, but no decision was taken.

Earlier, the High Court directed the authorities to release the compensation with statutory interest. Despite this, payment was only deposited before the Principal District Judge during contempt proceedings, without actual delivery to the petitioners. When the petitioners applied for reference of the dispute regarding adequacy of compensation, the Collector rejected it citing limitation.

The Court held that mere deposit of compensation in court does not constitute payment or acceptance. Rejecting the application solely on the ground of limitation was therefore legally unsustainable.

The High Court set aside the Collector's order and directed that the matter be referred to the competent civil court under Section 18, ensuring that the petitioners' claims regarding compensation are adjudicated according to law.