Authority: High Court of Orissa at Cuttack
Order Date: 21 July 2026
Case Overview
- Petitioners: Mahanadi Coalfields Limited & another; Opposite Parties: Dhobei Behera and others.
- The petition challenged the tribunal’s order dated 1 August 2015 (T.C. No.91 of 2004) which directed compensation at Rs 1,90,000 per acre for Sarad land and Rs 1,75,000 per acre for other land, with interest at 9% and 15% per annum, and further interest of 15% from the date of notification under Section 4(1) of the Coal Bearing Areas (Acquisition and Development) Act, 1957.
- Petitioners argued that Section 16 of the Act limits interest to a maximum of 5% per annum, making the tribunal’s 15% rate ultra vires.
- The Court cited earlier decisions: FAO No.440 of 2023 (order dated 19 Jan 2026) and FAO No.863 of 2018, which held that interest must be reduced to 5% under Section 16.
- The original award dated 22 November 2013 had directed enhanced compensation of Rs 2,78,427.93 paise with interest at 9% and 15% as applicable, and further interest at 15% on delayed payment.
Final Outcome
- Applying the principles of the cited judgments, the Court reduced the interest on the differential amount from 15% to 5% and ordered that no further interest accrue beyond that.
- The Court directed that interest be calculated from the date of publication of the Section 9(1) notification.
- The writ petition was disposed without notice to the opposite parties, reserving liberty to the petitioners to withdraw the writ and pursue their grievance before the Full Time Tribunal constituted under the Coal Bearing Areas Act.
- The Court expressly stated that it expressed no opinion on the merits of the case.
Topics: Compensation, Interest Rate, Coal Bearing Areas Act