Case Note & Summary
The case involved landowners from tribal communities whose lands were acquired in 1988 for coal mining by Mahanadi Coalfields Ltd. (MCL), a subsidiary of Coal India Ltd. They had not received compensation for over two decades, prompting them to seek judicial intervention. The Orissa High Court had directed MCL and the Central Government to expedite compensation under the Coal Bearing Areas (Acquisition and Development) Act, 1957. The Supreme Court, upon reviewing the case, emphasized the need for timely compensation and established a Claims Commission to assess and disburse compensation. The court approved a scheme proposed by the Solicitor General, which included setting up a Claims Commission to determine compensation and ensure proper rehabilitation of displaced persons. The court also highlighted the importance of addressing the social tensions arising from delayed compensation and directed MCL to assist in the establishment of the Commission. The court's analysis included the applicability of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and the determination of a uniform cut-off date for compensation based on the date of survey in September 2010. The court ultimately directed MCL to ensure disbursement of compensation and rehabilitation benefits to affected landowners, emphasizing the need for good governance and social responsibility in the process.
Headnote
A) Land Acquisition - Compensation Determination - Cut-off Date for Compensation - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 24 - The court determined that the cut-off date for compensation should be the date of notice of survey in September 2010, as delays in compensation were not the fault of landholders but due to government and company slackness. This approach was consistent with previous orders regarding compensation for other villages (Paras 12-16).
Issue of Consideration
Whether the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 apply to the case and the determination of compensation amounts.
Final Decision
The Supreme Court directed MCL to ensure timely disbursement of compensation to landowners and established a Claims Commission to assess compensation amounts. The court determined that the cut-off date for compensation should be the date of notice of survey in September 2010, emphasizing the need for timely compensation and rehabilitation.
Law Points
- Compensation for land acquisition
- Rehabilitation and resettlement
- Claims Commission
- Delay in compensation
- Rights of displaced persons



