IMPORTANT POINT
Factors to be considered while awarding compensation restated.

JUDGMENT :

C. NAGAPPAN, J.

1. Leave granted.

2. All these appeals are directed against the common judgment dated 11.9.2000 in LPA No.210 of 1999 and connected appeals passed by the Division Bench of the High Court for the States of Punjab and Haryana, at Chandigarh.

3. The State of Haryana issued Notification dated 2.12.1982 under Section 4(1) of the Land Acquisition Act, 1894, intending to acquire 327.52 acres in village Patti Jhambra, Shahabad in District Kurukshetra for a public purpose namely to develop and utilize the land for residential, commercial industrial area for the urban Estate of Shahabad. Section 6 Notification was issued on 4.7.1984 in relation to 178.62 acres, though on actual measurement, the possession of the land taken was found only 90.07 acres.

After hearing the objections of the land-owners/claimants the Collector by his Award dated 16.9.1986 awarded compensation at different rates per acre, classifying the lands as Chahi, Abadi plot, Gair Mumkin and Banjar quadim. Having not satisfied with the amount awarded, the claimants filed applications for reference under Section 18 of the Act and the Collector referred them to the District Judge, Kurukshetra for determining the value of the lands. The Reference Court after hearing both the parties on the basis of the evidence adduced, awarded uniform compensation at Rs.2,66,400/- per acre in his Award dated 31.5.1991. Feeling dissatisfied with the said Award the State filed Regular First Appeals seeking reduction in the amount of compensation and the claimants filed independent appeals for enhancement of the compensation.

The learned single Judge of the High Court partly allowed the appeal filed by the State and dismissed the appeals of the claimants and held that the claimants are entitled to get compensation at the rate of Rs.1,83,080/- per acre along with solatium and interest and statutory benefits. Feeling aggrieved the claimants preferred Letters Patent Appeals and the Division Bench of the High Court partly allowed the claimants appeals and modified the award to the extent that claimants are entitled to get compensation at the rate of Rs.2,19,696 per acre along with other benefits as awarded by the Reference Court. Feeling dissatisfied the State preferred the present appeals seeking reduction in the amount of compensation and the claimants preferred separate appeals seeking for enhancement of the compensation.

4. Shri Narender Hooda, learned Additional Advocate General for the State of Haryana submitted that the sale transactions relied on by the claimants related to small plots of land and the sale price of such transactions could not be taken to be an accurate assessment of the valuation of lands which were acquired in bulk and the acquired lands were agricultural in nature and they are not developed and deduction of 50% of the market value done by the learned single Judge was reasonable and is liable to be restored. Mr. Brijender Chahar, learned senior advocate who appeared for the claimants submitted that the lands in question fell within the municipal limits of Shahabad and it is in the midst of already developed land and reasonable deduction would be not more than 20% of the assessed value of the land and the cut of 40% imposed by the Division Bench of the High Court was not justified in the circumstances.

5. We carefully considered the submissions and perused the record. The only point for consideration in these appeals is as to what would be the reasonable deduction towards development charges, to be made from the market value. With regard to the location and potential of the land, the Reference Court held that the acquired land adjoins the abadi of the township of Shahabad and it is in its municipal limits and it is in evidence that around this land there exist DAV College, Girls High school, cinema hall, cold storage, rice mills, grain market and private nursing homes and all the establishments have sprung up before the acquisition and the acquired