High Court Directs HPPCL to Pay Enhanced Compensation to Landowners for Sawra-Kuddu Hydro-Electric Project
SHIMLA: In a significant ruling, the Himachal Pradesh High Court has allowed a batch of writ petitions, directing the Himachal Pradesh Power Corporation Limited (HPPCL) to pay enhanced compensation to landowners whose properties were acquired through private negotiations for the Sawra-Kuddu Hydro-Electric Project.
The judgment, delivered by Justice Sandeep Sharma on October 28, 2026, stems from petitions filed by Jangvir Singh Dulta, Vijay Pal Dulta, Krishan Pal Dulta, Satpal Singh Dulta, and Man Singh alongside other co-petitioners.
Background of the Case
The land in question, located in revenue villages Hatkoti, Bharot, and Ghunsa under Tehsil Jubbal, District Shimla, was initially notified for acquisition under the Land Acquisition Act in August 2005. However, instead of standard acquisition proceedings, the land was subsequently procured by HPPCL through negotiated rates based on a committee constituted by the State Government in July 2008.
At the time of executing the sale deeds, a memorandum approved by the HPPCL Board of Directors explicitly stipulated that the negotiated price was ad hoc. It included an undertaking that project authorities would pay the difference if the District Judge subsequently enhanced compensation in pending reference cases, along with 9% annual interest from the date of possession.
When the Land Acquisition Collector's initial awards were later enhanced in reference petitions and subsequently modified through Regular First Appeals (RFAs) by the High Court, the petitioners sought matching enhanced compensation. After their legal notices served in 2024 yielded no action, the landowners approached the High Court under Article 226 of the Constitution.
Court Observations and Ruling
HPPCL contested the petitions, arguing they were barred by severe delay and laches since the enhancement order by the District Judge was passed years prior.
Rejecting the Corporation's defense, Justice Sandeep Sharma observed that once HPPCL had explicitly undertaken to honor enhanced judicial rates, there was no requirement for landowners to repeatedly knock on doors for what was contractually and legally promised. The Court emphasized that state instrumentalities cannot act like private litigants attempting to evade just liabilities.
Citing precedent, including a similar ruling in Sat Dev Singh versus State of H.P., the High Court reinforced that project proponents are bound to fulfill their commitments and extend statutory benefits—including solatium and interest on solatium as per Supreme Court guidelines.
The High Court successfully disposed of the petitions, instructing HPPCL to disburse the enhanced compensation amounts—calculated from the date of execution of the sale deeds alongside all statutory benefits—directly to the petitioners.
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