Chairman SHRC Justice (rtd) Bilal Nazki yesterday heard the appeal filed by Dar, against the government's decision not to act on the earlier recommendation of the commission.
Justice Nazki listed the matter for final arguments before a division bench of the commission on December 12 and ordered the state government to clear its stand by that date.
A video showed Dar tied to the vehicle, evoking sharp reactions from the civil society.
However, the Army backed the officer who tied Dar, and honoured with him with the Army chiefs Commendation Card for his sustained efforts in counter-insurgency operations.
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The officer said he took the step to save local people.
The Army's claims that Dar was among the stone pelters was not substantiated by local police officials, who established Dar's statement that he was on his way to another village to offer condolences.
"That pending completion of the investigation in the matter, the recommendation with regard to payment of compensation to the complainant (Dar), shall tantamount to establish the guilt of the accused without affording him an opportunity of being heard," the reply maintained.
The government also said there was "no scheme or policy in vogue in the state, which could cover the payment of compensation" in such matters.