Delay in Payment of what is Fairly Given in Exchange for Private Lands and Real Estate and the Necessity of Compensation for Late Payment: Reexamining the Government's Eighteen-month Deadline (with Emphasis on the Critique of Judgments Rendered by the Courts of Province of Lorestan)

Pilvar, Rahim; Borji, Hosein

doi:10.22034/analysis.2026.2080791.1169

Delay in Payment of what is Fairly Given in Exchange for Private Lands and Real Estate and the Necessity of Compensation for Late Payment: Reexamining the Government's Eighteen-month Deadline (with Emphasis on the Critique of Judgments Rendered by the Courts of Province of Lorestan)

Document Type : Criticism of the judgment of the Court of Appeal

Authors

Rahim Pilvar ¹

Hosein Borji ²

¹ Associate Professor, Department of Private Law, Faculty of Law, Farabi College, University of Tehran, Iran

² Judge, PhD student in private law, Khorramabad Islamic Azad University, lorestan Iran

10.22034/analysis.2026.2080791.1169

Abstract

An old issue in law is the conflict between the sovereignty of the state and the private property rights of the citizens. On the one hand, the rights of individuals to their private property must be respected, and on the other hand, the state has sovereignty and must provide services.Today, everyone has accepted the idea that public interest takes precedence over private expediency, but this does not mean that we should completely ignore the right of the private owner. Two fundamental conditions for the possibility of acquiring private property for the implementation of public projects have been stipulated in law. First, the existence of necessity. Second, the payment of "fair compensation".One of the branches of this debate that has become an issue in our courts today is the issue of damages for late payment. With this explanation as to whether the government and governmental institutions are exempted from paying compensation for delayed payment for up to 18 months, considering the 18-month deadline foreseen in the Law on the Method of Payment of Judgment Debt and the Impossibility of Freezing and Seizure of Governmental Property, approved in 1986, or whether the aforementioned deadline is intended solely to take into account budgetary issues and better and continuous service delivery and does not relieve the government of its responsibility to pay compensation for delayed payment.This article, in the form of a critique of judgments rendered in Lorestan Province, seeks to delineate the issue of the government and governmental institutions’ delay in paying fair compensation to owners in order to provide a fair solution in the current inflationary situation. The main idea of this article is that in the event of a violation of private property and an act of expropriation by the government, in any case, it is necessary to treat it as payment of what is fair compensation as intended by the legislator. Therefore, in the event of an expropriation by state-owned companies, the government basically does not have the right to rely on the 18-month deadline, and other governmental institutions, assuming the existence of a contract, are obliged to pay fair compensation and do not benefit from the 18-month deadline. However, in the event that no contract has been entered into, they benefit from the 18-month payment deadline, but in any case, must pay compensation for late payment for the period involved.

Keywords

compensation for delayed payment

fair compensation

forced acquisition

private ownership

debt payment

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