IOCL Compensation Clarification Rs 2.99 Cr

Case Name: All India Tea and Trading Co. Ltd. v. Indian Oil Corporation Ltd. & Ors.
Court/Authority: Supreme Court of India, Civil Appellate Jurisdiction
Case/Order No.: Miscellaneous Application No(s). of 2026 (Diary No(s). 7961 of 2026), IA No. 42837/2026 & IA No. 131720/2026
Date: 27 May 2026 (order dated 27‑05‑2026)
Period of dispute: Compensation awarded on 24‑12‑2001, Supreme Court order dated 18‑02‑2025, current clarification sought in 2026.

Petitioner: All India Tea and Trading Co. Ltd.
Respondent: Indian Oil Corporation Ltd. (IOCL) & others.
Counsel for Petitioner: Raghavendra P. Shankar (A.S.G.), Priya Puri (AOR), Pallavi Mishra (AOR), Neelabh Bisht, Sachin Dubey, Abhishek Mishra, Sharad Kumar Puri, Riya Dogra.
Counsel for Respondent: P.S. Datta (Senior Advocate), Anwesha Saha (AOR), Fuzail Ahmad Ayyubi.
Additional Solicitor General of India: Represented IOCL.
Senior Counsel for Landowners: Unnamed, representing the beneficiaries of the acquisition.

Compensation Dispute: IOCL asserts total compensation of Rs. 2,99,95,703 (including statutory interest at 15% p.a. plus an additional 10% p.a. for perceived delay).
Landowners' Claim: Landowners contend the Reference Court correctly re‑fixed compensation at Rs. 7,89,76,349.
Interest Computation: Divergence over interest rates applicable under the Land Acquisition Act, 1894 (Section 34) – statutory interest vs. additional interest for delay.
Statutory Entitlements: The award includes compensation per Section 23, solatium @30% p.a., additional amount @12% p.a., and interest @9% p.a. for the first year, rising to 15% thereafter.

The Supreme Court reaffirmed its earlier order (18‑02‑2025) that the 2001 award by the District Judge, Cachar, Silchar is to be restored.
The Court clarified that landowners are entitled to:

1. Compensation as per Section 23 of the Land Acquisition Act, 1894.

2. Solatium @30% p.a. (Section 23(2)).

3. Additional amount @12% p.a. (Section 23(1)(a)).

4. Interest: 9% p.a. for the first year from possession, thereafter 15% p.a. (Section 34).

A serious dispute exists regarding the interest component, prompting the Court to direct a fresh determination.

Deposit Directive: IOCL must deposit the undisputed amount within four weeks in the name of the Company, to be released unconditionally to the landowners.
Interest Re‑determination: The Reference Court‑cum‑District Judge, Cachar, Silchar is instructed to re‑determine the interest component in accordance with Section 34 of the 1894 Act after hearing both parties.
Further Remedy: Any party aggrieved by the new interest determination may approach the High Court.

IOCL must comply with the deposit deadline and ensure the amount is transferred to the Company for immediate release to landowners.
The Reference Court will conduct a fresh hearing on interest, applying the statutory framework of the Land Acquisition Act.
Parties retain the right to seek judicial review in the High Court post‑interest determination.

The Court condoned the delay in filing the applications.
IA No. 42837/2026 and the associated Miscellaneous Applications are disposed of, subject to any pending applications.
The order is signed by Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice Vipul M. Pancholi.
The order is effective as of 27 May 2026 and is placed on file by Registrar‑cum‑PS Assistant Registrar Nitin Talreja and Preethi Dileep Kumar.