Jammu & Kashmir High Court Directs Expeditious Payment of Compensation for Panchayat Land Acquired for Road Construction; “Collector Must Disburse Compensation Within Three Months”

Court’s Decision

The Jammu & Kashmir High Court ruled in favor of the petitioner, directing the respondent-Collector to promptly calculate the compensation due to Panchayat Ashmar-Farmote for land acquired for constructing the Sangaldhan-Kanthan road. The court instructed:

1. The Executive Engineer (PWD) to deposit the required compensation within eight weeks.
2. The Collector to disburse the compensation to the panchayat within three months of receiving a certified copy of the order.

This decision aimed to resolve a longstanding delay in the compensation process, ensuring compliance with earlier precedents and equitable treatment of the affected panchayat.

Facts

• The petition was filed by the residents of Panchayat Ashmar-Farmote, represented by their Sarpanch, seeking compensation for land acquired by the government in 1998 for road construction.
• The acquired land measured:
  • 10 Kanals and 09 Marlas under Khasra No. 46,
  • 01 Kanal and 07 Marlas under Khasra No. 47, and
  • 01 Kanal and 04 Marlas under Khasra No. 4.
• The land was acquired for the construction of the Sangaldhan-Kanthan road in Tehsil Gool, District Ramban.
• The Collector passed an award for the common land (Maksoosa Kahascharai) in the village but failed to release compensation due to non-availability of funds from the indenting department, i.e., Public Works Department (PWD).
• The petitioners cited a 2008 High Court ruling (Habibullah Sheikh & Ors. v. State of J&K & Ors.), which held that local panchayats are entitled to receive compensation for land categorized as Maksoosa Kahascharai.

Issues

1. Is the petitioner-panchayat entitled to compensation for common land acquired for public road construction?
2. Has the respondent failed in its duty by unduly delaying the payment of compensation?

Petitioner’s Arguments

The petitioner argued that:

1. The Panchayat Ashmar-Farmote is entitled to compensation for the land acquired under the law laid down in Habibullah Sheikh.
2. The compensation award had been pending since 1998, despite repeated demands and legal proceedings.
3. The delay caused hardship to the panchayat and contravened the principle of timely justice.

Respondent’s Arguments

1. The respondents admitted the entitlement of the petitioner-panchayat to the compensation.
2. The Collector stated that compensation could only be disbursed after the necessary funds were released by the indenting department (PWD).
3. The delay in payment was attributed to the non-release of funds by the PWD, despite multiple requests from the Collector.

Analysis of the Law

The court analyzed the legal framework and previous rulings:

• It referred to its own judgment in Habibullah Sheikh & Ors. v. State of J&K & Ors., which unequivocally established that local panchayats are entitled to compensation for communal land acquired for public purposes.
• The principles of justice and equity demand that such compensation be disbursed promptly, as undue delays undermine the affected party’s rights.

Precedent Analysis

In Habibullah Sheikh:

• The court had clarified that common land, such as Maksoosa Kahascharai, when acquired for public infrastructure projects, must be compensated to the rightful custodian (local panchayat).
• This precedent reinforced the petitioner’s claim and left no room for ambiguity regarding their entitlement.

Court’s Reasoning

The court provided the following rationale:

1. The petitioner’s entitlement was admitted by the respondents in their written response, removing any substantive dispute about the claim.
2. The Collector had failed to fulfill its duty to disburse compensation promptly, citing the non-release of funds by the indenting department.
3. The court emphasized that the delay was unjustified, as the funds for compensation should have been prioritized by the PWD.
4. It recognized that the prolonged delay in compensating the panchayat violated principles of fairness and accountability.

Conclusion

The court issued the following directives:

1. The respondent-Executive Engineer (PWD) must release the funds for compensation within eight weeks.
2. The respondent-Collector must calculate and disburse the compensation to Panchayat Ashmar-Farmote within three months of receiving the certified copy of the order.
3. Both respondents were ordered to act expeditiously to resolve the issue, ensuring compliance with the judgment in Habibullah Sheikh.

Implications

1. Enforcement of Panchayat Rights: The judgment reinforces the rights of local panchayats to claim compensation for land acquired for public purposes.
2. Government Accountability: The decision holds government departments accountable for avoiding unnecessary delays in fulfilling compensation obligations.
3. Judicial Oversight: The court’s directive sets a clear timeline for compliance, ensuring that similar delays do not recur in the future.

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