The Supreme Court has extended compensation of ₹6.50 lakh per acre to landowners whose agricultural land was acquired under the same notification as other landowners who had already secured the higher compensation.
A Bench of Justice S.V.N. Bhatti and Justice N.V. Anjaria invoked its powers under Article 142 of the Constitution to grant the benefit, while making it clear that the appellants would not receive interest for the substantial periods during which they delayed pursuing their claim.
Background of the Case
The dispute arose from the acquisition of 7 Acres 12 Guntas of land in Survey No. 161/2 at Mudhol Village, Mudhol Taluk, Bagalkot District, Karnataka.
The land was acquired for a project involving accommodation for displaced families. A notification under Section 4(1) of the Land Acquisition Act, 1894 was issued on February 11, 1999. The Land Acquisition Officer subsequently passed an award on January 4, 2000.
The landowners challenged the compensation through a reference under Section 18(1) of the Act. On March 27, 2001, the Reference Court increased the compensation to ₹3 lakh per acre. The Karnataka High Court later enhanced it to ₹5 lakh per acre on June 23, 2011.
The appellants, however, pointed out that land covered by the very same notification had subsequently received compensation of ₹6.50 lakh per acre in another proceeding. The Supreme Court had also approved that rate in Ravindra and another v. Special Land Acquisition Officer, UKP, Bagalkot.
Supreme Court's Observation
The respondents opposed the claim, primarily relying on the appellants' delay in pursuing enhancement of compensation. They identified two long periods of delay, collectively amounting to 4,427 days, and argued that interest should not be granted for those periods.
The Supreme Court acknowledged that the delay was “abnormal.” At the same time, it noted that the appellants were agriculturists and that their lands had been acquired under the same notification under which compensation of ₹6.50 lakh per acre had already been determined with statutory benefits.
The Bench therefore exercised its constitutional power under Article 142, which allows the Supreme Court to pass orders necessary to do complete justice in a particular case.
Decision
The Supreme Court extended the compensation rate determined in Ravindra to the appellants as well.
The Court held that the appellants were entitled to ₹6.50 lakh per acre, along with statutory benefits. However, they were denied interest for the period from March 28, 2001, until the filing of their appeal before the Karnataka High Court in 2008, and again from June 24, 2011, until the Special Leave Petitions were refiled before the Supreme Court on January 27, 2017.
The total period for which interest was denied was 4,427 days.
The Supreme Court accordingly allowed the civil appeals in the stated terms and disposed of any pending applications.
Case Details
Case Title: Lachchappa and Others v. Special Land Acquisition Officer, UKP, Bagalkot and Others
Case Number: Civil Appeal Nos. of 2026 @ Special Leave Petition (Civil) Nos. 5481-5482 of 2017
Judges: Justice S.V.N. Bhatti and Justice N.V. Anjaria
Decision Date: August 7, 2026
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