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Civil Property & InheritanceSupreme Court of India

Tehri Hydro Development Corporation Ltd. v. S.P. Singh & Ors.

Civil Appeal · 2026 INSC 773Decided 31 Jul 2026
Civil Appeal No. 3454 of 2019
Justice R. Mahadevan · Justice Manmohan

Background

The State Government acquired land at Banjarawala Mafi, Dehradun, in 1992 to rehabilitate people displaced by the Tehri Dam, with an award passed in 1997. The landowners sought a reference under Section 18 of the Land Acquisition Act, and the Reference Court granted them statutory benefits (the 12% additional amount, 30% solatium, and statutory interest) on top of the agreed compensation. Tehri Hydro Development Corporation appealed to the Uttarakhand High Court challenging only these statutory benefits, but paid a flat Rs. 10 court fee instead of a value-based (ad valorem) fee. The High Court ordered it to pay ad valorem fee on the full disputed amount of about Rs. 2.34 crore.

Decision Breakdown

The Supreme Court dismissed the appeal and upheld the High Court's order. It held that under Section 26 of the Land Acquisition Act, a Reference Court's award is deemed a civil "decree," and solatium, the additional statutory amount, and interest are not optional add-ons but integral, inseparable parts of "compensation" itself (relying on the Constitution Bench ruling in Sunder v. Union of India and Indore Development Authority v. Tarak Singh). An appeal challenging only these components is still, in substance, an appeal to reduce the decretal compensation amount, so it attracts ad valorem court fee under Section 8 of the Court Fees Act: a party cannot pay a nominal fixed fee merely by confining its challenge to one component of the award.

Lesson Learnt

When appealing a land acquisition compensation award (even if only challenging solatium, the additional statutory amount, or interest, rather than the core market-value determination) a party must pay ad valorem court fee on the amount in dispute, not a nominal fixed fee.

Tehri Hydro Development Corporation Ltd. v. S.P. Singh & Ors. – Legal Case Shots | LegalAware