High Court Orders Railway to Pay Compensation with Interest, Imposes Penalty of ₹1 Lakh

In a significant ruling, the Madhya Pradesh High Court has mandated the railway to pay compensation, including accrued interest, for a land acquisition dispute. The single bench of Justice GS Ahluwalia imposed a cost of ₹1 lakh on the railway for its prolonged failure to settle the dues.

The court’s directive comes in response to a plea filed by the heirs of Keshav Kumar Nigam, following his death. The petitioners, Shashi Nigam, Rakesh Nigam, Anuradha Shrivastava, and Rajni, represented a longstanding grievance over a piece of land measuring 0.45 acres, acquired by the railway in February 1979 for constructing a loco shed.

Despite taking possession of the land in the late 70s, the railway failed to deposit the compensation for nearly 20 years, leading to a halt in the land acquisition proceedings. The heirs took the matter to the High Court in 2002. Surprisingly, despite the case pending for over 22 years, no substantial response was provided by the state government during this period.*

In its defense, the railway claimed that a compensation award had been made and ₹37,000, including interest, had been deposited. However, the claimant’s lawyer, Ajay Raijada, argued that the railway’s statements were misleading, and no such award had been finalized. It was only after the court’s stern stance and multiple hearings that the records were finally presented, revealing no award had been passed.

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The High Court, recognizing the severity of the case and the delay in justice, ordered the payment of compensation under the provisions of the new Land Acquisition Act. This compensation includes the due interest and must be completed within a month.

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