Supreme Court stays Rs 2.61 crore recovery from landowner in NHAI compensation dispute

Srinagar, Jun 7: The Supreme Court has stayed recovery proceedings against a resident from south Kashmir’s Anantnag district in a compensation dispute involving the National Highways Authority of India (NHAI).

A division bench of Justice Dipankar Datta and Justice Satish Chandra Sharma in an interim order put on hold the recovery proceedings in response to landowner Ali Muhammad Dar’s plea against the NHAI and another respondent.

In its decision, the High Court of J&K and Ladakh had upheld orders on recovery of more than Rs 2.61 crore along with 6% interest related to acquisition of land for four-laning of the Srinagar-Jammu Highway at Sangam in Anantnag district.

The High Court had said that compensation under land acquisition law includes value of land, structures and assets attached to and dismissed the landowner’s plea challenging two orders passed by the court of Principal District Judge Anantnag. By virtue of these orders the landowner was directed to refund the excess compensation he had allegedly received twice under the same compensation stream.

Following the dismissal, Dar filed a Special Leave petition in the Supreme Court against the decision of May 7, 2026 of the High Court of J&K and Ladakh.

When the matter came up for hearing, senior Supreme Court advocate, A M Magrey, appearing for the petitioner along with a team of advocates, argued before the Top Court against the recovery action against Dar. After hearing the submissions, the apex court issued notice to the respondents and granted interim protection to the landowner.

“Issue notice. There shall be a stay of recovery from the petitioner till the next date of hearing,” the Supreme Court said, in its order.

The dispute relates to acquisition of 6 kanals and 2 marlas of land along with structures at Sangam, Bijbehara, Anantnag, for the four-laning of the Srinagar-Jammu National Highway. Dar had sought enhancement of compensation before the Reference Court, which in July 2014 awarded compensation for land, wayside amenities, a proposed dormitory, reinstallation of a petrol outlet and loss of earnings.

However, NHAI subsequently moved an application before the Principal District Judge, Anantnag, alleging that an excess amount had been released to the landowner due to duplication in disbursement. The District Court accepted the plea and directed recovery of the excess payment. A review petition filed by Dar was also dismissed.

Challenging those orders, Dar approached the High Court. In a detailed judgment delivered on May 7, the court upheld the recovery proceedings and dismissed the petition.