Meihoubam Rakesh, director of Human Rights Law Network, Manipur, told IANS on Friday that the court directed the Manipur government to pay the compensation since the accused were personnel of the state's police commandos.
Rakesh, who is also a practising lawyer, said, "On the night of May 6, 2009 a police commando team led by Sub Inspector L Bedajit raided the house of a youth identified as Naoba Ngangbam of Uripok in Imphal west district.
"He was led away and later it was stated that he was killed in an encounter. The commandos maintained that the deceased was a member of an outlawed insurgent group," he said.
However, Kamalini Ngangbam, mother of the deceased, filed a petition on March 31, 2010 with the High Court praying for justice.
The High Court ordered the District and Sessions Court judge, Imphal East, to make inquiry. The judge's report was that the overpowered youth was killed without mercy.
The Supreme Court is looking into cases of 1,528 alleged victims of fake encounters in insurgency-afflicted Manipur.
The apex court had selected six cases randomly for inquiry and found that these were cases of custodial deaths.
One Supreme Court justice wanted to know how Azad Khan, a 12-year-old student, could have been a terrorist. He was gunned down in the presence of parents and villagers by a combined team of state and central forces.