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2021 Supreme(SC) 582

SUPREME COURT OF INDIA
M.R. SHAH, ANIRUDDHA BOSE, JJ.
Ramesh Kumar - Appellant
Versus
Bhatinda Integrated Cooperative Cotton Spinning Mill and Ors. - Respondents
Civil Appeal Nos. 3875-3876 of 2009
With
Bant Singh and Ors. - Appellants
Versus
The State of Punjab & Ors. - Respondents
Civil Appeal No.5669 of 2021 (Arising out of Special Leave Petition (C) No.9470 of 2010)
With
Gurbachan Singh (D) By LRs and Anr. - Appellants
Versus
The State of Punjab and Ors. - Respondents
Civil Appeal No.5670 of 2021 (Arising out of Special Leave Petition (C) No.15117 of 2010)
With
Gurjant Singh & Anr. etc. etc. - Appellants
Versus
The State of Punjab through Chief Secretary, Department of Cooperation and Ors. - Respondents
Civil Appeal Nos.9185-9196 of 2017
Decided On : 13-09-2021

Advocates appeared:
For the Appellant(s) : Mr. Nikhil Goel, AOR Mr. Sridhar Potaraju, AOR Ms. Shiwani Tushir, Adv. Mr. Aayush Kumar, Adv. Mr. Rameshwar Prasad Goyal, AOR
For the Respondent(s): Ms. Ranjeeta Rohatgi, AOR Ms. Kumud Lata Das, AOR Mr. Puneet Kansal, Adv. Ms. Anita Pandey, Adv. Ms. Indu Kaul, Adv.

Headnote:

Land Acquisition Act, 1894 - Sections 4 and 6 - Seeking Award for compensation - Land Acquisition - Land Acquisition Act, 1894 lands owned by the original claimants situated in revenue estate acquired for public purpose, namely, establishment of Bhatinda Integrated Cooperative Cotton same was followed by a notification under Section 6 of the Act - Land Acquisition Officer Award determined the value of land acre and awarded compensation accordingly - Court determined market value of land - Court it was case on behalf of land owners that the acquired land is situated just on and has a very potential value of being used for commercial and residential purposes as well as industrial purposes - Court took into account the aforesaid sale deed market value of lands acquired and considering time gap of about 9 years between the date of the execution of aforesaid sale deeds and Section 4 - Land owners preferred appeals for enhancement of compensation - By impugned common Judgment and Order High Court has allowed appeals preferred by the Spinning Mill reducing amount of compensation and determining the value of acquired land - High Court also considered Sale Deed as a base for determining value of acquired land and also added 12% annual increase – Held, Court’s opinion facts and circumstances of case annual increase/escalation ought to have been at rate of 10% maximum. Even otherwise, it is required to be noted that State of Punjab suffered due to militancy and because of that prices would have crashed - Grant the escalation/price rise at the rate of 12% would not be justified at all - After considering case observed and held by this Court in the case that even if the transaction is 2 to 3 years prior to the acquisition, Court should, before adopting a standard escalation satisfy itself that there were no adverse circumstances - It is further observed and held that the question is therefore, necessary before increasing the price with reference to the old transactions. assuming that appellants are right in submitting that the increase in land value should have been adopted on cumulative basis, in the peculiar facts and circumstances of case – Court see no reason to interfere with impugned judgment and order passed by the High Court - Court considering fact that land in question at the relevant time was an agricultural land into consideration the fact that sale instance relied upon was a quite big chunk of land and the location of the acquired land and the land was acquired for spinning mill, the High Court has rightly adopted 15% cut - Land was acquired in the year 1988, the same was made operational only in the year 1992 and therefore, has gone into liquidation in the year 2003 - Court see no reason to interfere with the common Judgment and Order passed by the High Court – Appeals are dismissed.

JUDGMENT :

M.R. Shah, J.

Civil Appeal Nos. 3875-3876 OF 2009

1. Arising out of the impugned common judgment and order dated 19.09.2008 passed by the High Court in RFA No.3476 of 1999 filed by the original claimants for enhancement and RFA No.1507 of 1999 filed by the Bhatinda Integrated Co-operative Cotton Spinning & Ginning Mills Ltd.

Special Leave Petition No.9470 of 2010

Leave granted.

Arising out of RFAs No.2648 of 1999 (Bant Singh and Ors. vs. State of Punjab and Ors.), the appeal which was filed by the original claimants for enhancement of the compensation. However, it is required to be noted that RFA No.1505 of 1999 filed by the Bhatinda Integrated Co-Operative Cotton Spinning & Ginning Mills Ltd. vs. Bant Singh and others is not under challenge.

Special Leave Petition No.15117 of 2010

Leave granted.

Arising out of RFA No.2645 of 1999 which was filed by the original claimants Gurbachan Singh and others for enhancement of compensation. It is required to be noted that no appeal has been preferred by the original claimants (Gurbachan Singh and others) challenging the order passed in RFA No.1505 of 2019 which was filed by the Bhatinda Integrated Co-Operative Cotton Spinning & Ginning Mills Ltd. which has been allowed by the High Court and the amount of compensation has been reduced.

CIVIL APPEAL NOS.9185-9196 of 2017

Civil Appeal Nos.9895-9897 of 2017 arising out of RFA Nos.2642, 2643, 2644, 2645, 2646, 2648 of 1999 and RFA Nos. 1505, 1508, 1509, 1510, 1515 and 1516 of 1999.

2. As common question of law and facts arise in this group of appeals, all these appeals are decided and disposed of together by this common Judgment and Order.

2.1 Vide notification dated 06.06.1988 issued under Section 4 of the Land Acquisition Act, 1894 (for short, ‘the Act’), the lands owned by the original claimants admeasuring 297 Kanals and 1 Marla situated in the revenue estate of Jassi Pau Wali, Distt. Bhatinda, Punjab came to be acquired for public purpose, namely, establishment of Bhatinda Integrated Cooperative Cotton Spinning and Ginning Mills Ltd. (for short, ‘the Spinning Mill’). The same was followed by a notification under Section 6 of the Act on 08.06.1988. The Land Acquisition Officer vide Award dated 05.10.1989 determined the value of the land at Rs.25,000/-per acre and awarded the compensation accordingly. At the instance of the land owners the references were made to the Reference Court. Vide common Judgment and Award dated 27.02.1999, the Reference Court determined the market value of the land at Rs.1,12,000/-per acre. Before the Reference Court it was the case on behalf of the land owners that the acquired land is situated just on the main Bhatinda Mansa Road and has a very potential value of being used for commercial and residential purposes as well as the industrial purposes. Before the Reference Court the land owners heavily relied upon the registered Sale Deeds Ex.A.W.6/C to Ex. A.W.6/H executed on or about 24.05.1979 at the rate of Rs.50,000/-per acre. The Reference Court took into account the aforesaid sale deed Ex.A.W.6/C to determine the market value of the lands acquired and considering the time gap of about 9 years between the date of the execution of the aforesaid sale deeds and Section 4 Notification thereby granted the increase of 12% in the price of the land per year and applied the cut of 25% and finally determined the value of the land at Rs.1,12,000/- per acre and accordingly enhanced the award of compensation by common Judgment and Order dated 27.02.1999.

2.2 Feeling aggrieved and dissatisfied with the common Judgment and Award passed by the Learned Reference Court whereby it enhanced the amount of compensation considering the market value of the land at Rs.1,12,000/-per acre, both, the original claimants as well as the Spinning Mill preferred the appeals before the High Court. The land owners preferred the appeals for enhancement of the compensation. By impugned common Judgment and Order the High Court has allowed the appeal

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