Recording “a sense of regret” that the Allahabad High Court could not take up appeals in a 1987 acquisition on priority, the Supreme Court has directed the Meerut Development Authority to deposit the Full Land Compensation awarded to landowners, with only 8.33 percent to be released to them pending the appeals.
New Delhi: First appeals over land acquired in 1987 for the Shatabdi Nagar Housing Scheme remain pending in the Allahabad High Court, and the Supreme Court has now disposed of a batch of special leave petitions filed by the Meerut Development Authority against interim orders in them, directing the Authority to deposit the entire enhanced compensation awarded to landowners and permitting the release of only 8.33 percent of it meanwhile [Meerut Development Authority v. Parmeshwar Dayal & Anr.].
The order of October 8, 2026 came from a Bench of Justice Dipankar Datta and Justice Sheel Nagu. Justice Datta authored it, and it is reported as 2026 INSC 1106.
A regret over the pace of the appeals
The order closes with a passage on how the first appeals have been handled:
“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.”
Acknowledging the heavy burden on High Court Benches, the Court said that once such a request is made, the roster bench is expected to make a sincere endeavour to expedite the case. It requested the High Court to decide the Shatabdi Nagar batch on priority, preferably within six months, noting that the “unusually large” enhancement burdens the Authority with a huge liability while leaving the landowners uncertain about what they will finally receive.
If the appeals are not decided in six months for valid reasons, the landowners may seek release of a further sum. The Registry was directed to send the order to the Registrar General for placing before the Chief Justice of the High Court.
What the Authority must now deposit
Senior Advocate P.S. Patwalia, for the Authority, placed before the Court an order of April 24, 2026, passed by a coordinate Bench in a similar matter, of which Justice Datta was a member. Out of about Rs 6 crore in enhanced compensation in that case, only Rs 50 lakh, roughly 8.33 percent, was released to the landowners.
With the appeals pending in the High Court, the Bench saw no purpose in keeping the petitions alive, but issued directions to maintain parity. The Authority must deposit the entire enhanced sum with the High Court Registry within four weeks. The Registrar General will set apart 8.33 percent of the compensation awarded to each landowner and remit it to them, and invest the balance in separate interest-bearing, auto-renewing fixed deposits with a nationalised bank, subject to the High Court’s further orders. The release is without prejudice to the parties’ contentions, and if the appeals succeed the landowners must return the amounts.
How the dispute reached the Court
The lands were acquired in 1987 for the Shatabdi Nagar Housing Scheme. The Special Land Acquisition Officer, Meerut, by an award dated February 22, 1990, fixed compensation at Rs 20 and Rs 27 per square yard. On references sought by the landowners, the Presiding Officer of the Land Acquisition, Rehabilitation and Resettlement Authority, Meerut, enhanced the compensation on March 30, 2024, to Rs 690 and Rs 720 per square yard for the respective villages.
The Authority challenged the enhancement in a batch of first appeals under Section 54 of the Land Acquisition Act, 1894. By interim orders, including one dated September 17, 2025, the High Court stayed the award on the condition that the Authority deposit 50 percent of the enhanced amount in cash and furnish security for the rest, and allowed the landowners to withdraw the entire cash deposit. According to a chart filed by the Authority, the balance payable across the batch exceeds Rs 59 crore.
Why the order matters
When a reference court sharply enhances compensation and the acquiring body appeals, appellate courts have to decide how much the landowners may take home before the appeal is decided. The order sets a working template: secure the entire decretal amount in court, release a modest fixed share to the landowners, and keep the rest in interest-bearing deposits so that neither side is left exposed whatever the outcome.
It also carries a pointed message on delay. Landowners whose land was taken nearly four decades ago are still waiting for final compensation, and the Supreme Court has used its order to ask the High Court’s Chief Justice to ensure the appeals are heard without further loss of time.
Case Title: Meerut Development Authority v. Parmeshwar Dayal & Anr. [SLP (Civil) No. 12994 of 2026 with connected matters; 2026 INSC 1106]
Bench: Justice Dipankar Datta and Justice Sheel Nagu, Supreme Court of India
Date of Order: October 8, 2026
Appearances: Senior Advocate P.S. Patwalia for the petitioner
