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2019 Supreme(SC) 1533

SUPREME COURT OF INDIA
Uday Umesh Lalit, Indu Malhotra, JJ.
Sardara Singh & Ors. Etc. Etc. - Appellant
Versus
Land Acquisition Collector, Improvement Trust, Rupnagar & Ors. - Respondents
Civil Appeal No. 4269 of 2019, 4270 of 2019, 4271 of 2019, 4272 of 2019, 4273 of 2019, 4274 of 2019, 4275 of 2019, 4276 of 2019, 4277 of 2019, 4278 of 2019, 4279 of 2019, 4280 of 2019
Decided On : 24-04-2019

Advocates Appeared:
Neeraj Kumar Jain, Adv., Aniket Jain, Adv., Siddharth Jain, Adv., Umang Shankar, Adv., Dinesh Verma, Adv., Rajat Sharma, Adv., Subhashish Bhowmick, Adv., S.C. Pathela, Adv.

The main legal principle established in the judgment is the relevance of previous acquisitions and their compensation rates in determining the appropriate compensation for land acquisition. The Court also emphasized the application of a cumulative increase over the base rate for compensation calculation.

Headnote:

Compensation - Land Acquisition - Punjab Town Improvement Act, 1922 - Section 36, Section 42 - Notifications issued under Section 36 of the Act - Scheme sanctioned under Section 42 of the Act - Compensation rates for different categories of land - Market value assessment - High Court's decision on compensation rates - Previous acquisitions as basis for compensation - Cumulative increase over base rate

Fact of the Case:

The case involved the assessment of compensation for land acquisition under the Punjab Town Improvement Act, 1922. Notifications were issued under Section 36 of the Act, and a scheme was sanctioned under Section 42 of the Act. The District Judge initially awarded compensation, which was later challenged and modified by the High Court. The appellants relied on previous acquisitions to support their claim for higher compensation rates.

Finding of the Court:

The Supreme Court found that the previous acquisitions and their compensation rates were relevant in determining the appropriate compensation for the present acquisition. The Court relied on the rates awarded in previous acquisitions and applied a cumulative increase over the base rate to arrive at the appropriate compensation for the acquisition in 1993.

Issues: The key issues included the assessment of compensation rates for different categories of land, the relevance of previous acquisitions in determining compensation, and the application of cumulative increase over the base rate for compensation calculation.

Ratio Decidendi: The Court's decision was influenced by the previous acquisitions and their compensation rates, which served as a basis for determining the appropriate compensation for the present acquisition. The Court applied a cumulative increase over the base rate to calculate the compensation, considering the location and potential of the acquired lands.

Final Decision: The Supreme Court allowed the appeals and declared that the appellants were entitled to compensation at the rate of Rs.6,62,800/- per acre for the acquired lands, along with statutory benefits based on such rate.

ORDER

Uday Umesh Lalit, J. - Delay condoned in SLP(C)....D.No.6472/2018.

2. Leave granted.

3. In the present cases, three notifications were issued on 18.6.1993, 25.6.1993 and 2.7.993 under Section 36 of the Punjab Town Improvement Act, 1922 (hereinafter referred to as "the Act"), covering an extent of land admeasuring 24 acres 6 Kanals and 11 marlas. Thereafter, by notification dated 28.4.1994, a scheme under Section 42 of the Act, known as Transport Nagar Scheme, Rupnagar, was sanctioned. The Award was declared on 18.4.1996 and Land Acquisition Collector, Rupnagar, awarded compensation at the following rates for different categories of land :

    "Chahi Land : Rs.2,01,984/- per acre

    Barani Land : Rs.1,00,992/- per acre

    Gair Mumkin Land : Rs.1,39,200/- per acre"

4. On reference being made by the land holders, the District Judge, Rupnagar, awarded compensation @ Rs.6,93,000/- (Rupees Six Lakhs Ninety Three Thousand) per acre besides severance charges vide his Award dated 9.11.2001.

    The order had observed as under :

    "12.....From the evidence on record, it is apparent that the acquired land is situated on the Chandigarh-Ropar-Nangal National Highway and R.T.P. Colony consisting of 700/800 house is just across the link road on one side and on the other side, there is police lines in which there are about 100 quarters shopping complex Bank School are there in the RTF Colony. There are also shops on both sides of the road leading from Ropar up to the land acquired. The land of village Kotla Nihang falls behind the police lines. 132 KV Colony of PSEB is also situated near the acquired land."

    and

    13. The then learned District Judge, Rupnagar has already assessed market value of the acquired land for Bela Road part-II Scheme through copy of Award Ex.P3 at the rate of Rs.5,25,000/- per acre. The land involved in the said case was low lying area as whole of the rainy and other water of Rupnagar town flows towards the said land. As per discussion made above, the land acquired in the present case is on better footing and has great potential value than that of land acquired for Bela Road, Part-II, Development Scheme. The land in the said case was acquired through Notification dated 12.4.1989. Whereas the material date of determining the market value of the acquired land in the present case is 18.6.1993. Thus, there was a difference of 4 years between the two notifications. Though in 1994 (4) P.L.R. 243 (supra), the price rise between two dated of notifications was allowed at the rate of 12% per annum, but in view of the potential value and proximity of the land acquired in the present case, the price rise between the two dates of notifications is allowed at the rate of 8% per annum. Therefore, I hold that the present claimant is entitled to receive compensation of the acquired land at the flat rate of Rs.6,93,000/- per acre as it is situated within the municipal limits of Rupnagar and cannot be taken as Agricultural land."

5. The matter was carried further by the land holders by filing Civil Writ Petition No.2718/2002 in the High Court of Punjab and Haryana at Chandigarh. The Improvement Trust, being aggrieved by the enhanced rate of compensation awarded by the District Judge, also filed writ petitions. The High Court by its judgment and order dated 26.11.2011 quashed the Award dated 9.11.2001 on the ground that the matter had to be decided by the Tribunal headed by the District Judge and not by the District Judge alone. The matters were therefore remanded to the Land Acquisition Tribunal, Rupnagar, for fresh consideration.

6. Post remand, the District Judge by his oder dated 1.2.2014 awarded compensation at the following rates :

    "Chahi Land @ : Rs.2,69,312/- per acre

    Barani Land @ : Rs.1,34,656/- per acre

    Gair Mumkin Land @ : Rs.1,85,600/- per acre"

7. The matters again reached the High Court by way of challenges at the instance of the land holders and the High Court by its judgment and order dated 9.2.2017 modified the decision of the Land A

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