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2014 Supreme(SC) 720

SUPREME COURT OF INDIA
V.GOPALA GOWDA, ADARSH KUMAR GOEL, JJ.
NIRMAL SINGH Etc. Etc. - APPELLANTS
Vs.
STATE OF HARYANA THROUGH COLLECTOR - RESPONDENT
CIVIL APPEAL NOS. 3982-3987, 7916-7918, 10207 of 2011, C.A. Nos. 7547-7549 of 2013, AND C.A. Nos. 7707-7709 of 2013
Decided on: September 26, 2014

IMPORTANT POINT
Acquisition of land—Amount of compensation cannot be ascertained with mathematical accuracy.

Headnote:(A) Land Acquisition Act, 1894—Sections 4 and 18—Acquisition of land—Compensation—Deductions towards developmental charges—To determine just and reasonable compensation for acquired land on the basis of sale instances as submitted by appellants by taking average of sale considerations mentioned therein that are relevant to date of issue of Notification under Section 4—However, same is to be determined keeping in mind that developmental costs are higher for larger areas of land as compared to small portions of land—Rate of compensation must be subject to deductions towards developmental purpose that will have to be incurred by respondent- State—Sale instances in relation to small pieces of land situated near acquired land can be considered, subject to reasonable deductions for developmental costs that will be incurred in future and evidence that these lands can be compared to acquired land in terms of its vicinity and comparable benefits and advantages. (Paras 14 and 15)

       (2010) 11 SCC 581—Referred.

       (1972)1 SCC 480 ; (2011)7 SCC 714 ; (2005)4 SCC 789—Relied.

       (B) Land Acquisition Act, 1894—Sections 4, 18, 23(1A) and 23(2)—Acquisition of land—Compensation—Quantification of market value—Deductions towards developmental charges—Acquisition of agricultural land for construction of road, development and utilization of land for residential and commercial purposes—Claimants do not dispute appropriateness of sale transaction taken as basis for determination of compensation—Their grievance is that no deduction or cut should have been effected in price disclosed by sale deed for arriving at market value—Acquired land is advantageously located in a prime locale as it is close to commercial and residential establishments—Acquired land has attained non-agricultural potentiality—It has acquired potential value to be utilised for both residential and commercial purposes in future—Larger portions of land incur higher developmental costs compared to smaller portions of land—60% deduction on market value of acquired land towards developmental expenses allowed—Appellant-land owners will be entitled to just and reasonable compensation at the rate of Rs.12,00,000/-per acre—Besides , they will also be entitled to statutory benefits in accordance with Sections 23(1A) and 23(2) on compensation awarded alongwith 15% interest. (Paras 9, 10, 14, 15, 16 and 17)

       Facts of case—

       Matter pertains to acquisition of land and payment of just compensation. High Court enhanced compensation in respect of acquired lands to Rs.9,00,000/-per acre from Rs.6,60,000/-per acre as was determined by Reference Court. These appeals are filed by land owners with prayer for further enhancement of compensation in respect of their acquired land by determining correct market value.

       Findings of Court—

       Appellant-land owners will be entitled to just and reasonable compensation at the rate of Rs.12,00,000/-per acre. Besides, they will also be entitled to the statutory benefits in accordance with Sections 23(1A) and 23(2) on compensation awarded. Appellant-land owners are also entitled to get interest on the compensation at the rate of 15% p.a. under the proviso to Section 28 of the Act. Since land of appellants were acquired in year 2002, respondents are directed to pay compensation awarded in favour of appellants by way of demand draft after proper calculation made within eight weeks from receipt of copy of this Judgment and Award.

       

JUDGMENT

V. GOPALA GOWDA, J.

These groups of appeals have been filed against the impugned Judgment and order dated 10.12.2010 passed by the High Court of Punjab and Haryana at Chandigarh. Since the grievance and prayer of all the appellant-land owners are similar, namely, for enhancement of compensation in respect of their acquired land in question, for the sake of convenience and brevity, we shall refer to the facts of C.A. No(s). 3982-3989 of 2011 which have been filed against the Judgment and award passed in R.F.A. Nos. 69 of 2007, 70 of 2007, 71 of 2007, 72 of 2007, 288 of 2008, 289 of 2008. All these R.F.A.s were disposed of in terms of Judgment and award of even date passed in R.F.A. No. 4538 of 2006, whereby the High Court enhanced the compensation in respect of the acquired lands to Rs.9,00,000/-per acre from Rs.6,60,000/-per acre as was determined by the Reference Court.

2. The State of Haryana issued a notification dated 22.08.2001 under Section 4 of the Land Acquisition Act, 1894 (in short ‘the Act’) for acquisition of 45.3 acres of land owned by the appellants situated at Pehowa, District Kurukshetra, for the public purpose, namely for construction of road, development and utilization of land for residential and commercial purposes. At the time of proposed acquisition, the nature of the land was agricultural and mostly vacant. Declaration that the land is required for a public purpose was made vide notification under Section 6 of the Act on 25.01.2002. The Land Acquisition Collector (for short ‘the Collector’) vide award dated 19.11.2003 assessed the market value of the acquired land at the rate of Rs.6,00,000/- per acre.

3. Being unsatisfied with the award of the Collector, the appellant-land owners filed objections claiming a market value of their land at Rs.60,00,000/-per acre. The Collector made a reference to the Addl. District Judge, Kurukshetra which is the Reference Court under Section 18 of the Act for determination of the correct market value of the acquired land. The learned Addl. District Judge vide his order dated 28.08.2006, on the basis of material evidence on record assessed the value at Rs.6,60,000/-per acre besides other statutory benefits under Sections 23(1A), 23(2) and 28 of the Act.

4. Regular First Appeals were filed by the appellant-land owners as they were dissatisfied with the compensation awarded by the Reference Court and sought for further enhancement of compensation for the acquired land, whereas the State filed the appeals praying for reduction of the compensation before the High Court of Punjab and Haryana at Chandigarh.

5. After hearing the parties and going through the evidence on record, the High Court found that there was significant variation in the sale instances of lands located close to the acquired land as depicted in the sale deeds produced by the State as well as by the land owners. The High Court, vide its impugned Judgment and award dated 10.12.2010, by applying a thumb rule, determined and enhanced the amount of compensation at Rs.9,00,000/-per acre. Hence, these appeals are filed by the land owners with prayer for further enhancement of compensation in respect of their acquired land by determining the

correct market value.

6. The learned counsel for the appellants contended that the market value of the acquired land has not been determined by the High Court based on the sale instances duly produced and exhibited before the Addl. District Judge. The High Court has erroneously held that the compensation cannot be awarded for a large scale of land on the basis of sale instances of small pieces of land. The learned counsel has further contended that the High Court, despite appreciating that the land pertaining to the sale deeds produced by the land owners are located just outside the boundary of the acquired land, has failed to determine the correct market value of the ac































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