P&H: Landowners not entitled to interest on interest in land acquisition compensation case

punjab-haryana
⚖️ Order Date: 29 Jul 2026
Headnotes

(i) Land Acquisition Act, 1894, Ss.28, 34 — Interest on compensation — Interest u/s.34 is statutory and mandatory, whereas interest u/s.28 on enhanced compensation is discretionary and is to be exercised in judicious manner — Interest under the Act is simple and not compound —...

(ii) Land Acquisition Act, 1894, Ss.28, 34 — Interest on compensation —  No interest on interest is payable though payment is firstly required to be adjusted against interest. (Para 15)

(iii) Land Acquisition Act, 1894, Sections 23(1A), 23(2), 28 and 34 — Enhanced compensation — Interest on interest — Contention of landowners that interest become part of principle as soon as Executing court passed impugned order — Interest accrued upto impugned order did not become...

(iv) Land Acquisition Act, 1894, Sections 23(1A), 23(2), 28 and 34 — Enhanced compensation — Interest on Compensation — Compensation always comprises three components i.e. market value, addition under Section 23(1A) and solatium under Section 23(2) — Interest is not part of compensation. (Para 18)

(v) Civil Procedure Code, 1908, S.152 — Amendment of judgments, decrees or orders — Clerical or arithmetical mistakes or errors arising from accidental slip or omission may be corrected at any time — Power u/s.152 is not like power of review and cannot be used...

(vi) Civil Procedure Code, 1908, O.21.Rr.35, 36 — Execution proceedings — Second objection application — Executing Court cannot entertain second objection application — Respondent was required to challenge order of Executing Court instead of filing second objection application after more than five years. (Para 20)


Facts of the Case

P&H: Landowners not entitled to interest on interest in land acquisition compensation case

The Punjab and Haryana High Court has held that landowners cannot claim “interest on interest” in land acquisition compensation matters. The Court said that interest under the Land Acquisition Act, 1894 is governed strictly by statute and remains simple interest, not compound interest.

Justice Jagmohan Bansal was hearing a batch of connected petitions arising out of execution proceedings in a land acquisition case from Sangrur and Patiala districts. The dispute centred on whether the executing court had correctly calculated compensation and interest after the High Court had enhanced the market value of the acquired land in 2016.

The landowners argued...

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