Compensation is monetary damage paid to the person injured by an action of the administration from the administration for the injury done to him. There are a number of statutory powers granted to the administrative bodies, such as regulatory, promotional, developmental, licensing etc. These rights usually interfere with the private rights of individuals. The law provides for compensation, when private rights of individuals are infringed. In case of compulsory acquisition of property under the Land Acquisition Act of the States, compensation is payable by the states. Compensation is awarded in proceedings of a civil suit and also in writ petitions in cases of gross violation of individual rights by the administration. In numerous cases Municipal bodies have been held liable to pay compensation for the wrongful acts of their servants.
