1. Land acquisition for a grain market under the Land Acquisition Act — Dispute over market value determination and the application of belting for differential compensation. (Para 2 )
1995 Supreme(SC) 51
SUPREME COURT OF INDIA
BEFORE K. RAMASWAMY AND SUJATA V. MANOHAR, JJ.
RAJ KUMAR AND ANOTHER
Versus
STATE OF PUNJAB AND ANOTHER
Civil Appeals Nos. 783-84 of 1995{From the judgment and Order dated 12-11-1988 of the Punjab and Haryana High Court in R.F.A. Nos. 218-19 of 1985},
Decided on 11-1-1995
Advocates appeared:
S.C. Maheshwari, Senior Advocate (Ms Sandhya Goswami, Advocate, with him) for the Appellants
Ranbir Yadav and G.K. Bansal, Advocates, for the Respondents.
Important Points
Subject
Land Acquisition - Compensation
Act Referred
Headnote
Land Acquisition Act - Section 4(1) - Acquisition of Land - Land for Establishment of Grain Market - Determination of Compensation - Enhanced Market Value - Whether Belting of 22 karams Is illegal or Arbitrary - Acquiring a total extent of 56 acres of land for establishment of a grain market - Land Acquisition Officer by his award determined market value to a belting of 22 karams and for rest of land he determined market value - Additional District Judge enhanced market value by his award and decree and for rest of land he determined compensation, on further appeal while High Court confirmed determination of compensation up to 22 karams at rate enhanced the market value for remaining land with statutory benefits by its judgment and decree - State did not file appeals, still not being satisfied, two of the claimants filed these appeals by special leave – Held, We find no illegality in determining the belting at 22 karams and thus no further interference is required in the matter - Purpose of acquisition i.e. to establish market and on its account the lands are possessing potential value, is irrelevant by operation of Section 24 of the Act. It is true that the High Court in another case by another Bench has determined the market value @ Rs 14,000 per marla in the judgment referred to above, but we do not find any material as to what has happened to judgment. Further basis on which the High Court, in the appeals and other cases, has determined the market value is on appreciating evidence placed on record. As the State did not file the appeal - Court has rightly determined market value for rest of the land at Rs 65,000 per acre. Accordingly we do not think that there is any justification warranting interference in matter - Appeals dismissed
Legal Category Hierarchy
G.K.BANSAL, Ranbir Yadav, S.C.MAHESHVARI, SANDHYA GOSVAMI
Table of Contents
2. Challenge to the legality and arbitrariness of belting — Claim for uniform higher compensation based on potential value and parity with other judgments. (Para 3 )
3. Belting is a settled rule for differential compensation based on road proximity — Potential value arising from the purpose of acquisition is irrelevant under Section 24. (Para 3 )
4. Belting is a recognized principle for determining market value, allowing for differential compensation for land abutting roads compared to the remaining land. (Para 3 )
5. Appeals dismissed. (Para 4 )
6. What is the legal principle of belting in land acquisition?
Belting is a settled rule of law used to award differential compensation for land. It involves treating land abutting a road up to a specific depth as a separate unit with a higher market value than the remaining land. (Para 3 )
7. Does the purpose of land acquisition affect the determination of its market value?
No, the potential value of land arising from the specific purpose of the acquisition is irrelevant to the determination of market value by operation of Section 24 of the Land Acquisition Act. (Para 3 )
8. Can a party claim higher compensation based solely on a judgment in another case?
Not necessarily; the determination of market value is based on the appreciation of evidence placed on record for the specific case, rather than automatic parity with other judgments. (Para 3 )
ORDER
1. Leave granted.
2. A notification under Section 4(1) of the Land Acquisition Act was published in the State Gazette on 24-1-1980 acquiring a total extent of 56 acres, 5 kanals and 11 marlas of land for establishment of a grain market. The Land Acquisition Officer by his award dated 21-2-1982 determined the market value at Rs 24,000 per acre up to a belting of 22 karams and for rest of the land he determined the market value @ Rs 20,000 per acre. On reference, the Additional District Judge enhanced the market value by his award and decree dated 15-6-1984 at Rs 1,60,000 per acre up to 22 karams at the rate of Rs 1000 per marla and for rest of the land he determined compensation at the rate of Rs 50,000 per acre. However, on further appeal while the High Court confirmed determination of the compensation up to 22 karams at the rate of Rs 1,60,000 per acre, enhanced the market value for the remaining land to Rs 65,000 per acre with the statutory benefits by its judgment and decree dated 15-10-1985. The State did not file appeals. However, still not being satisfied, two of the claimants filed these appeals by special leave.
3. The first question that arises, as strenuously contended by the learned counsel for the appellant, is whether belting of 22 karams is illegal or arbitrary. The land abutted the main road Jullundhar to Pathankot, would no doubt command higher potentiality for the purpose of shopping. But to what extent the belting should have been given would be a question of fact. It is also contended that the other lands also equally possessed of the same potential value. The acquisition of land for mandi market itself shows that the land has potential value. The High Court, therefore, should have awarded higher compensation. Thirdly, it was contended that in a subsequent judgment in Gurmeet Singh v. Land Acquisition Collector (Regular First Appeal No. 1848 of 1985 dated 21-8-1989) another Division Bench has granted @ Rs 14,000 per marla and that therefore the appellant should also be paid at the same rate. We find no force in these contentions. It is seen that the Land Acquisition Officer, the District Judge as well as the High Court have consistently taken 22 karams to be the proper area of dimension for belting which should be separately treated from rest of the land. Belting is a settled rule of law to award differential compensation. The land abutting road up to a depth of 22 karams was treated as a unit and compensation was determined separately to the rest of the land. The entire extent of 56 acres of the acquired land cannot be considered to have the same value. For the rest of the land compensation was determined at Rs 65,000 per acre. The courts below, therefore, rightly determined 22 karams to be the belting area for differential treatment from the rest of the lands. It is settled law that the belting is one of the principles on the basis of which market value would be determined. It being the principle, the belting has been rightly determined by the High Court, the Civil Court as well as the Land Acquisition Officer. We find no illegality in determining the belting at 22 karams and thus no further interference is required in the matter. The purpose of acquisition i.e. to establish market and on its account the lands are possessing potential value, is irrelevant by operation of Section 24 of the Act. It is true that the High Court in another case by another Bench has determined the market value @ Rs 14,000 per marla in the judgment referred to above, but we do not find any material as to what has happened to the judgment. Further the basis on which the High Court, in the appeals and other cases, has determined the market value is on appreciating the evidence placed on record. As the State did not file the appeal, we are of the view that the High Court has rightly determined the market value for the rest of the land at Rs 65,000 per acre. Accordingly we do not think that there is any justification warranting