IN THE HIGH COURT OF JUDICATURE AT PATNA

Civil Writ Jurisdiction Case No.15685 of 2022

======================================================

Shekh Kalim, Son of Shekh Bounu, Resident of Village- Kunjbanna, P.S.-

Pirpainti, District- Bhagalpur.

... ... Petitioner/s

Versus

1.The State of Bihar through the Principal Secretary, Department of Revenue

and Land Reforms, Government of Bihar, Patna.

2.The Collector-cum-District Magistrate, Bhagalpur.

3.The Distrtict Land Acquisition Officer, Bhagalpur.

4.The Managing Director, Bihar State Power Generation Company Limited,

Vidyut Bhawan, Bailey Road, Patna.

5.The Chief Engineer (P and T), Bihar State Electricity Board, Patna.

... ... Respondent/s

======================================================

Appearance :

For the Petitioner/s: Ms. Pravina Kumari, Advocate

For the State : Mr. Sajid Salim, SC-25

: Mr. Atul Shankar, AC to SC-19

For the BSPGCL : Ms. Aishwarya Shankar, Advocate

======================================================

CORAM: HONOURABLE MR. JUSTICE SOURENDRA PANDEY

C.A.V. JUDGMENT

Date : 07-08-2026

Heard Ms. Pravina Kumari, learned counsel for the

petitioner, Ms. Aishwarya Shankar, learned counsel for the

BSPGCL and Mr. Sajid Salim, learned SC-25 for the State.

2. The present writ petition has been filed seeking the

following reliefs:

“That this is an application for issuance of an

appropriate writ(s), order(s), direction(s), directing the

Respondents concern to pay compensation with statutory

interest for 15 decimals of land of Khata No. 228, Plot No.

1959, Thana No. 81, Mouza-Harinkol Anchal-Pirpainti,

District-Bhagalpur in as much as 37 dec. of the said plot

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no. 1959 has been acquired for Pirpainti Thermal Power

Project vide L.C. Case No. 26 of 2011-12 but compensation

has been paid only for 0.22 dec. land and compensation for

0.15 dec. land is still unpaid for which the petitioner is

running from pillar to post since last twelve years.

And for any other relief(s) for which the petitioner is

found to be entitled in the facts and circumstances of the

case.”

3. The case of the petitioner is that the land

appertaining to Khata No. 228, Plot No. 1959, Thana No. 81,

Mauza Harinkol, District Bhagalpur having an area 45 decimal

was recorded in the name of mother of the petitioner namely

Bibi Taslima in the revenue record of right and Jamabandi is

existing in her name and rent receipt are being issued. Out of the

total land, 0.37 decimals of land was acquired for Pirpainti

thermal Power Project but L.C. Case No. 26/11-12 was initiated

only for 22 decimals of land and notice was issued in the name

of the mother of petitioner for the same.

4. It has been submitted that Bibi Taslima is no more

and all her legal heirs have authorized the petitioner by swearing

an affidavit to make Pairvi in this matter and receive

compensation, however, notice was served only for 22 dec. land

in place of 37 decimals of land for which the petitioner raised

objections. It has next been submitted that the objection of

petitioner was not considered and they received compensation

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for 22 decimals of land only and thus, aggrieved by the action of

Respondent No. 3, representations were filed before him on

various occasions but to no avail after which petitioner

approached the Collector cum District Magistrate, Bhagalpur

vide representation dated 03.05.2019, which was forwarded to

the District Land Acquisition Officer, Bhagalpur.

5. It has further been submitted that Chief Engineer

(Respondent No. 5) was requested to enquire vide letter dated

28.09.2019, whereafter when nothing was done the petitioner

again made representation before Respondent No. 2 which was

forwarded to Land Acquisition Officer, Bhagalpur on

07.03.2020 and on 24.02.2020 the said Land Acquisition Officer

issued letter to Managing Director (Respondent No.4) to make

an enquiry and submit report.

6. It has further been submitted that even at this stage

when compensation was not received as prayed for, the

petitioner filed writ bearing CWJC No. 1542 of 2021 before this

Hon’ble court and vide order dated 23.03.2021, this court

granted liberty to petitioner to approach the Land Acquisition

Officer, however even then nothing was done. It is next

submitted that upon submission of application before the said

Land Acquisition Officer for payment of compensation for

Patna High Court CWJC No.15685 of 2022 dt.07-08-2026

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remaining 0.15 decimals of land, which was found to be correct,

still no payment was made. It is furthermore submitted that the

Land Acquisition Officer was asked by Bihar State Power

Generation Company vide letter dated 18.08.2021 for payment

of compensation with respect to 0.15 decimals of land, however,

Land Acquisition Officer has not made any payment while due

amount is admitted after which again several representations

were made by petitioner. It has also been submitted that

petitioner is entitled to get interest on the total amount of

compensation of 0.15 decimals of land from the date of

notification dated 23.06.2011. It is evident from the records that

due to fault of Respondent Authorities, compensation has only

been paid for 0.22 decimals of land against the acquisition of

0.37 acres.

7. It has lastly been submitted that through letter

dated 28.09.2019 and 24.01.2020 the District Land Acquisition

Officer has enquired into the claim of petitioner and concluded

that 0.37 decimals of land has been acquired and there is

physical possession with concerned department over which they

have constructed boundary wall and thus, compensation for

remaining 0.15 decimals has to be paid to the petitioner.

Submissions on behalf of Respondents 4 and 5

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8. It is submitted on behalf of Respondent Nos. 4 and

5 through Counter Affidavit that total land of 1179.08 acres

under Mauza Raipura, Sundarpur and Harinkol-I and Harinkol-

II were to be acquired for Pairpanti Thermal Power Project,

Bhagalpur which is carried out by Industrial Development

Authority (IDA), Government of Bihar under which 988.40

acres was acquired by then. It is next submitted that amount for

compensation has been transferred by the said IDA but

distribution of compensation to concerned landowners had to be

dealt by Officer of District Land Acquisition, Bhagalpur, who

vide letter No. 53 dated 24.01.2020 has accepted requisition for

0.43 acres of land for the said project as claimed by petitioner

had been received by their office from Bihar State Power

Generation Company Ltd. and also accepted that due to

measurement mistake, only 0.22 acres of land has been assessed

in place of 0.43 acre of land.

9. It is submitted that, after enquiry, it was found that

only 0.37 acres of land owned by the petitioner falls under the

project. It is also submitted that land acquisition was not done

by Bihar State Power Generation Company Limited but is made

a party respondent. It is lastly submitted that an officer of this

company vide letter No. 02/LAO dated 18.08.2021 also

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requested District Land Acquisition Officer, Bhagalpur (DLAO)

to verify claim of petitioner from register II of their office and to

compensate petitioner as per new Acquisition Act, if it is found

that acquired land is more than which is on record.

10. Through supplementary Counter Affidavit of

answering respondents, it has been brought to notice that vide

letter No. 06/LAO cell dated 27.06.2023 the DLAO, Bhagalpur

was reminded to address the grievance of petitioner and pay the

due compensation claimed for remaining 0.15 decimals of land

and vide letter no. 04/LAO addressed to DLAO, Bhagalpur, it

was requested for payment of remaining amount. It is submitted

that answering respondents in another letter dated 25.04.2025

categorically stated that IDA transferred Rs.1021 crores to

DLAO, Bhagalpur for paying compensation to beneficiaries

after which the remaining Rs.150 crores were returned to State

Consolidated Fund due to which 100 percent compensation was

not paid to some of the raiyats including the petitioner. It is also

submitted that District Magistrate, Bhagalpur, requested IDA to

provide Rs. 150 crores for compensation and the present

respondents requested DLAO, Bhagalpur, to compensate the

petitioner for his claim. It is further stated that Bihar

Government Energy Department vide letter dated 28.04.2025

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requested the Additional Chief Secretary, Industries Department

for providing Rs.150 crores, which was returned to State.

Submissions on behalf of Respondent Nos. 2 and 3

11. It is submitted that after receiving petitioner’s

application and vide letters issued to DLAO, Bhagalpur, it took

note of the same and got the missing plot measuring 0.15 acre

measured by the Amin and that report has been sent to LAO,

BSPGCL, Patna for further necessary action vide letter No. 885

dated 19.06.2024. Another Counter Affidavit was filed by these

respondents wherein it has been submitted that through oral

order of Hon’ble High Court dated 04.07.2025, Rs.20,54,709/-

has been directed to be paid to the petitioner. It is stated that the

total available amount in the report submitted by IDA is

Rs.13,88,74,132 which is automatically deducted as a result of

completion of five consecutive financial years under CFMS

maintenance system. It is next submitted that for payment of

amount that stands due to concerned raiyats to be paid out of Rs.

150 crores, letters have been issued to IDA and in fact, the GM

(human resources/administration) BSPGC has also addressed

DLAO, Bhagalpur to compensate the petitioner as per rules.

Pursuant to order dated 07.04.2025 passed by this court asking

the reason, as to why petitioner has not been paid his due

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amount and who is responsible for that, the answering

Respondents through Supplementary Affidavit submit that a

request has been made from LAO, Bhagalpur to BSPGC Ltd.

regarding payment of compensation.

12. It has been submitted that Letter No. 1458 dated

27.08.2025 was given to Branch Manager, Tikamanjhi,

Bhagalpur, for making payment of Rs. 20,14,200/-. It is

submitted that the award under section 23 and 30 of

RFCTLARR Act 2013 amounts to Rs. 20,54,709/- which was

calculated from Sl. No.20 as Earned Investment whereas Cess,

Establishment Expenditure and Contingency Expenditure is Rs.

40,509/-. Thus, excluding this amount (i.e., 20,54,709- 40,509)

the payable amount stands at Rs. 20,14,200/-, which has been

paid to the petitioner.

13. At this juncture, 4

th

Supplementary Counter

Affidavit was filed on behalf of Respondent Nos. 2 and 3

pursuant to order dated 16.04.2026 of this court. It is submitted

that total compensation amount after calculations (Format-VII)

stood at Rs. 16,03,800/- and calculation of interest as per

stipulations of section 80 of the Act, 2013 stands at Rs.

4,10,400/- (Annexure-R/B to this Supplementary C.A.). It is,

thus, submitted that compensation amount of Rs. 20,14,200/- as

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assessed also includes interest amount and the same has been

paid to petitioner.

14. Through the 5th supplementary counter affidavit

filed on behalf of Respondent No. 3 a consolidated reply has

been filed. It is submitted that the petitioner received Rs.

20,14,200/- on 27.08.2025 however, the calculated amount is

Rs. 14,62,284/- according to rules. It is next submitted that

taking into account the Market value as per section 26 of

RFCTLARR Act, compensation amount is Rs.14,62,284/- and

interest amount as per Section 80 of the Act is Rs. 4,26,914/-. It

is next submitted that the total payable amount to the petitioner

is Rs. 18,89,198/- (Annexure-R/B to this Supplementary C.A.).

It is further submitted that calculation of all acquired lands of

Pirpainti Thermal Power project including other state projects

have been done accordingly. It is further submitted that the total

interest under Section 80 of the Act has been wrongly calculated

by the petitioner on total amount, however, according to Section

26 of the Act, the interest is to be calculated based on market

value of land which is Rs. 2,85,000/-. Hence, it is submitted that

compensation of Rs. 20,14,200/- is already paid to the petitioner

as against the calculated amount of Rs.18,89,198/-.

Submissions in Rejoinder filed on behalf of the

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petitioner

15. The petitioner through rejoinder has filed a reply

to counter affidavit by Respondent Nos. 3 and 4 stating that

petitioner received Rs. 20,14,200/- on 27.08.2025 against

calculated amount of Rs. 20,54,709/- whereas Rs. 40,509/- has

wrongly been deduced. It is submitted that after proper

calculation of interest as under Section 80 of the Act, it would

entail the total interest amount to be Rs. 2878343/-.

16. Furthermore, the petitioner contended that after

calculations, total principal amount stood at Rs. 19,09,482/- and

interest calculated as per Section 80 of the Act, 2013 will come

to Rs. 2878343/-, making the total payable amount to Rs.

47,87,825/-. It is next submitted that petitioner is further entitled

to Rs. 27,33,116/- [Total amount Rs. 47,87,825/- - Paid amount

Rs. 20,54,709/-]. It is also submitted that compensation amount

is not considered as interest and this is additional compensation

considered as a fine or damages penalty or loss under the law

for delay which compensates for delay in payment of principal

amount. It is lastly submitted that extra 12% p.a. on market

value of land for the period of publication of notification to the

date of announcement of award must be given.

17. The learned counsel for the petitioner submits

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that now the only dispute which remains to be adjudicated is the

quantum of the total compensation which is to be paid to the

petitioner i.e. Principal plus statutory interest.

18. The learned S.C.-25 submits that the calculation

filed by the petitioner through supplementary affidavit is not

correct, especially the Principal amount of Rs. 19,09,482/-. It

has been submitted that Principal amount of compensation over

which interest both under Section 30(3) of the Act, 2013 as well

as Section 80 of the Act, 2013 has to be paid are different as

interest @ 12% as contemplated under Section 30(3) of the Act,

2013 is to be paid on market value plus assets without adding

any solatium.

19. At this juncture, it would be apt to record the

calculations of the petitioner as well as the State to verify and

assess their respective claims.

20. The Principal amount, as per the petitioner has

been calculated as under:-

(a) Cost of 1 Acre land-Rs. 19,00,000.00

(b) Cost of 1 Decimal land- Rs. 19,000.00

(c) Cost of 15 Decimals land- Rs. 19,000 X 15=

Rs. 2,85,000.00

(d) Factor-2 rate of 15 Decimals land – Rs.

2,85,000 X 2= Rs. 5,70,000.00

(e) Assets – Rs. 1,00,800.00

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(f) Total cost of land & Assets – Rs. 5,70,000 +

Rs. 1,00,800 = Rs. 6,70,800.00

2. 100% Solatium = Rs. 670800.00

Factor - 2 applied -

Rs.

13,41,600.00 (i)

3. Amount of compensation from the publication of

notification from 27.09.2011 to date of

announcement of Award 07.04.2015 (3 years 6

months 10 days).

For 1 year- Rs. 1341600 X = Rs. 1,60,992.00.

So 3½ years 1,60,992 X 3.5 = 5,63,472.00

10 days X 10=4410/-

Total amount of compensation 563472 + 4410=

Rs. 5,67,882.00 (ii)

Total principal amount (i)+(ii)

13,41,600+5,67,882 = Rs. 19,09,482

21. The Principal amount, as per the District Land

Acquisition Officer has been calculated as under:-

(a) Cost of 1 Acre land-Rs. 19,00,000.00

(b) Cost of 1 Decimal land- Rs. 19,000.00

(c) Cost of 15 Decimals land- Rs. 19,000 X 15=

Rs. 2,85,000.00

(d) Factor-2 rate of 15 Decimals land – Rs.

2,85,000 X 2= 5,70,000.00

(e) Assets – Rs. 1,00,800.00

(f) Total cost of land & Assets – Rs. 5,70,000 +

1,00,800 = Rs. 6,70,800.00

3. Amount of compensation from the

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publication of notification from 27.09.2011 to date

of announcement of Award 07.04.2015 (3 years 6

months 10 days i.e. 1288 days – 2,85,000 X 1288 X

12/36500 = Rs.1,20,684.00

Hence Total amount Rs. 6,70,800 +

Rs.6,70,800 + Rs.1,20,684.00 = Rs.14,62,284.00

22. Having heard the learned counsels for the parties

and also their respective claims and counter claims, this Court

finds that in the calculation furnished by the petitioner, 12%

interest as per Section 30(3) of the Act, 2013 has been added on

Rs. 13,41,600/- i.e. along with solatium amount. This to the

understanding of the Court is against the statutory provision as

contained in Sections 26 to 30 of the Act, 2013.

23. Section 27 and 29 of the Act, 2013 are being

reproduced hereunder for better understanding -

“27. Determination of amount of

compensation -

The Collector having determined the

market value of the land to be acquired shall

calculate the total amount of compensation

to be paid to the land owner (whose land has

been acquired) by including all assets

attached to the land.

28…...

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29. Determination of value of things

attached to land or building -

(1). The Collector in determining the

market value of the building and other

immovable property or assets attached to the

land or building which are to be acquire, use

the services of a competent engineer or any

other specialist in the relevant field, as may

be considered necessary by him.

(2). The Collector for the purpose of

determining the value of trees and plants

attached to the land acquired, use the

services of experienced persons in the field

of agriculture, forestry, horticulture,

sericulture, or any other field, as may be

considered necessary by him.

(3). The Collector for the purpose of

assessing the value of the standing crops

damaged during the process of land

acquisition, may use the services of

experienced persons in the field of

agriculture as may be considered necessary

by him.”

24. From the bare perusal of the aforesaid provisions,

it is crystal clear that the determination of market value of the

land to be acquired shall be done including all assets attached to

the land. Section 29 of the Act, 2013 contemplates

determination of value of things attached to the land or building.

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Thus, it is clear that the total compensation to be paid includes

both the market value of land as well as the value of assets. It is

only on this amount that the solatium is determined as contained

in Section 30(1) of the Act, 2013. In such a view of the matter,

the calculations done by both the petitioner and the State are not

correct. The petitioner has included the solatium amount for

interest as contemplated in Section 30(3) of the Act, 2013.

While the State has taken only the market value of the land in

doing so.

25. The statute is very clear on this point and as per

the provisions, the interest under Section 30(3) of the Act, 2013

has to be calculated as under :-

(a) Cost of 1 Acre land-Rs. 19,00,000.00

(b) Cost of 1 Decimal land- Rs. 19,000.00

(c) Cost of 15 Decimals land- Rs. 19,000 X 15=

Rs. 2,85,000.00

(d) Factor -2 rate of 15 Decimals land – Rs.

2,85,000 X 2= Rs. 5,70,000.00

(e) Assets – Rs. 1,00,800.00

(f) Total cost of land & Assets – Rs. 5,70,000 +

1,00,800 = 6,70,800.00

Amount of interest from the publication of

notification from 27.09.2011 to date of

announcement of Award 07.04.2015 (3 years 6

months 10 days).

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For 1 year- Rs. 6,70,800 X =

Rs.80,496/-

So for 3½ years - Rs. 80,496 X 3 years and 6

months= Rs.2,81,736/-

10 days- Rs. X 10= Rs.2205/-

Total amount of interest under Section 30 (3)

of the Act, 2013 = Rs.2,83,941/-

26. Once the interest on the Principal amount of

compensation is decided, then only the solatium is added to the

Principal amount (Market value of land+value of assets) only.

Thus, the total compensation payable to the petitioner stands as:

Rs.6,70,800/- + Rs.6,70,800/- + Rs.2,83,941/- = Rs.16,25,541/-

27. The calculation of interest as per Section 80 of

the Act, 2013 as done by the petitioner was also being disputed

by the state on the ground that the interest shall be payable only

on the initial amount of the Market value of the land i.e. Rs.

2,85,000/-. The State, through its 5

th

supplementary counter

affidavit has given details of the calculation of interest under

Section 80 of the Act, 2013 in paragraph-10 and has stated the

total interest to be Rs. 4,26,914/-.

28. The aforesaid calculation too is completely

against the statutory provision, as Section 80 provides that the

interest is to be paid on the amount of compensation which was

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not paid or deposited on or before taking possession of the land.

29. Section 80 of the Act, 2013 is reproduced for

reference:-

“80. Payment of Interest

When the amount of such

compensation is not paid or deposited on or

before taking possession of the land, the

Collector shall pay the amount awarded with

interest thereon at the rate of nine per cent,

per annum from the time of so taking

possession until it shall have been so paid or

deposited:

Provided that if such

compensation or any part thereof is not paid

or deposited within a period of one year

from the date on which possession is taken,

interest at the rate of fifteen per cent per

annum shall be payable from the date or

expiry of the said period of one year on the

amount of compensation or part thereof

which has not been paid or deposited before

the date of such expiry.”

30. Thus, from the above it is evident that the amount

which was to be paid to the petitioner at the time of possession

was the total amount upon which the interest had to be paid

under Section 80 of the Act, 2013, then the calculation has to be

done on the total compensation and not as per market value of

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the land only.

31. In view of such finding, the petitioner is liable to

be paid the following amount –

(i) Compensation + Solatium = Rs.13,41,600/-

(Rs.6,70,800/- + Rs.6,70,800/-)

(ii) Interest under Section 30(3) of the Act

= Rs.2,83,941/-

(iii) Interest under Section 80 of the Act on total

amount payable to the petitioner, i.e., Rs.16,25,541/-

(Rs.6,70,800/- + Rs.6,70,800/- + Rs.2,83,941/- =

Rs.16,25,541/-)

(a) For 1

st

year @ 9 % from 07.04.2015 to

06.04.2016 = Rs.16,25,541 X = Rs.1,46,299/-

(b) For the period starting from 07.04.2016 to

07.04.2025 @ 15 % = Rs.16,25,541 X X 9 =

Rs.21,94,480/-

(c) For the period starting from 07.04.2025 to

25.08.2025 (141 days) =

Rs.16,25,541x = Rs. = Rs.668/- per day

Thus, for 141 days (Rs. 668 x 141) = Rs.94,188/-

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Total, i.e.,(a+b+c) = Rs.1,46,299/- + Rs.21,94,480/-

+ Rs.94,188/- = Rs.24,34,967/-

Grand total payable to the petitioner thus stands as

sum of the above i.e. (i+ii+iii) = Rs.13,41,600/- +

Rs.2,83,941/- + Rs.24,34,967/- = Rs.40,60,508/-

32. The admitted amount already paid to the

petitioner is to the tune of Rs. 20,54,709/- therefore the amount

which the State has to pay the petitioner now is Rs. 20,05,799/-

(Rs. 40,60,508 - Rs. 20,54,709)

33. The District Land Acquisition Officer, Bhagalpur,

is directed to pay the aforesaid amount to the tune of

Rs.20,05,799/- (Twenty Lakhs Five Thousand Seven Hundred

Ninety Nine) within a period of two months from the date of

this order.

34. The learned S.C. 25 shall communicate the order

forthwith for compliance by the District Land Acquisition

Officer, Bhagalpur.

35. It is made clear that if the aforesaid amount,

which has been directed to be paid to the petitioner, if not paid

within two months from the date of this judgment, then the State

shall be liable to pay 12% penal interest on the payable amount

from 07.04.2015 till the date of payment.

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36. The learned S.C. 25 shall communicate the order

forthwith for compliance by the District Land Acquisition

Officer, Bhagalpur.

37. The writ application stands allowed with the

directions aforesaid.

tannu/manoj-

(Sourendra Pandey, J)

AFR/NAFR NAFR

CAV DATE 09.07.2026

Uploading Date 07.08.2026

Transmission Date NA