A Supreme Court bench comprising Justice Dipankar Datta and Justice Sheel Nagu has disposed of a batch of special leave petitions filed by the Meerut Development Authority, modifying an interim conditional stay order passed by the Allahabad High Court regarding enhanced land acquisition compensation. Disposing of the petitions, the apex court directed the authority to deposit the entire enhanced compensation awarded by the Reference Court with the Registry of the High Court within four weeks, while restricting the interim disbursement to landowners to 8.33% of the enhanced sum and requesting the High Court to decide the pending first appeals expeditiously, preferably within six months.
Background of the Case
The dispute traces back to land acquisition proceedings initiated in 1987 for the Shatabdi Nagar Housing Scheme. On February 22, 1990, the Special Land Acquisition Officer, Meerut, originally determined compensation for the acquired lands at Rs. 20/- and Rs. 27/- per square yard.
Dissatisfied with the determination, the affected landowners sought reference under the law. Decades later, the Presiding Officer of the Land Acquisition, Rehabilitation and Resettlement Authority (Reference Court), Meerut, delivered an award on March 30, 2024, substantially enhancing the compensation to Rs. 690/- and Rs. 720/- per square yard for the respective villages.
Proceedings Before the High Court and Parties’ Contentions
The Reference Court’s enhancement was challenged by the Meerut Development Authority before the High Court of Judicature at Allahabad in a batch of First Appeals under Section 54 of the Land Acquisition Act, 1894.
During the pendency of these appeals, the High Court issued interim orders—such as the order dated September 17, 2025, in First Appeal No. 717 of 2025—staying the implementation of the Reference Court’s award. However, this stay was conditioned upon the authority depositing 50% of the enhanced compensation in cash and furnishing security for the remaining 50%. The High Court further permitted the claimant-landowners to withdraw the entire 50% deposited in cash, leaving the balance subject to the final outcome of the appeals.
Aggrieved by this interim condition, the Meerut Development Authority approached the Supreme Court. Senior counsel Mr. P. S. Patwalia appeared for the authority and placed on record a comprehensive chart detailing the liabilities across various petitions, which was marked as Appendix-I by the court. Counsel also appeared on behalf of the respective respondent-landowners.
The Court’s Analysis and Precedent
The Supreme Court observed that the special leave petitions arose directly out of appeals currently pending adjudication before the High Court, noting that no useful purpose would be served by keeping the petitions pending before the apex court.
In calibrating the interim relief, the bench referred to an order dated April 24, 2026, passed in Special Leave Petition (Civil) No. 15370 of 2026 and connected matters by a coordinate Bench (of which Justice Dipankar Datta was a member). In that proceeding, out of an enhanced amount of approximately Rs. 6 crore, only Rs. 50,00,000/-—representing approximately 8.33% of the total enhanced sum—was directed to be released to the landowners subject to conditions. The bench resolved to maintain parity with those directions.
Addressing the protracted timeline of the litigation, the Supreme Court expressed regret over the lack of progress in the High Court:
“Before parting, we cannot turn a blind eye to the pace at which the pending first appeals are being dealt with in the High Court. As noted, the acquisition proceedings in the present case date back to the year 1987. We note with a sense of regret that, despite a specific request made in the said order to ensure hearing of the appeals on a priority basis, the High Court could not take up the same for hearing. The required alacrity, it is submitted, is missing. We are not unmindful of the heavy burden on each bench of the High Court; yet, once a request is made, it is expected of the roster bench to make a sincere endeavour to expedite its decision on the appeals.”
Highlighting the competing interests at stake, the bench observed:
“…having regard to the fact that the Reference Court has enhanced the compensation by an unusually large margin which, on the one hand, burdens the petitioner with a huge financial liability while, on the other, leaves the respondents in a state of uncertainty as to what compensation will finally attain finality.”
Decision and Directions
Disposing of the batch of petitions, the Supreme Court issued the following operative directions:
- Full Deposit: The Meerut Development Authority must deposit the entire enhanced sum awarded by the Reference Court in favour of the respondents with the Registry of the High Court within four weeks.
- Disbursement of 8.33%: Upon deposit, the Registrar General of the High Court shall set apart an amount equal to 8.33% of the enhanced compensation awarded to each respondent and remit it to them in accordance with law.
- Reservation of Rights: The release and receipt of the 8.33% amount shall be without prejudice to the rights and contentions of the parties in the pending first appeals. Should the first appeals succeed, the released sum must be returned to the authority by the respective respondents.
- Investment of Balance: The remaining balance sum is to be invested in separate interest-bearing fixed deposit accounts in a nationalised bank on an auto-renewal basis, subject to further orders of the High Court.
- Expedited Disposal: The High Court is requested to take up the batch of first appeals relating to the Shatabdi Nagar Housing Scheme on a priority basis and decide them as early as possible, preferably within six months from the date of communication of the order.
- Liberty to Claimants: If the High Court is unable to dispose of the appeals within six months for valid reasons, the respondents are granted liberty to approach the High Court seeking the release of such further sums as the court may deem fit.
The Registry was directed to transmit a copy of the order to the Registrar General of the Allahabad High Court to be placed before the Chief Justice for information and any necessary administrative directions.
Case Details:
Case Title: Meerut Development Authority v. Parmeshwar Dayal & Anr. (with connected matters)
Case No.: Special Leave Petition (Civil) No. 12994 of 2026
Bench: Justice Dipankar Datta and Justice Sheel Nagu
Date: October 08, 2026
