IMPORTANT POINT
Acquisition of land – Fair and just compensation – Annual increase to determine just compensation varies from case to case and period to be applied is a major factor to be considered.

JUDGMENT :

VIKRAM NATH, J.

1. Application for substitution is allowed.

2. Leave granted.

3. The present appeals assail the correctness of common judgment and order of the High Court of Punjab & Haryana at Chandigarh dated 01.06.2016, whereby the appeal filed by Respondent No.1 (RFA No. 295 of 2005) was partly allowed, and the appeals filed by the appellant and State of Haryana (respondent No.2) (RFA No. 2400 of 2004 and RFA No. 2522 of 2004) were dismissed, raising the amount of compensation to Rs.493/- per square yard on the date of notification under Section 4 of the Land Acquisition Act, 1894¹[In short, ‘1894 Act’]. The basis for the same being cumulative annual increase at the rate of 15% for a period of 11 years. The base figure was taken from an order of Reference Court dated 30.08.2000 relating to acquisition of land of the same village Naraingarh of the year 1989, and the period of 11 years being counted from 1989 to 2000, the year of the notification dated 10.11.2000 issued under Section 4 of the 1894 Act.

4. Relevant facts for deciding the present appeals are as follows:

i) Notification was issued under Section 4 of the 1894 Act on 10.11.2000 for acquiring land measuring 80 Kanals, 11 Marlas out of the revenue estate of Naraingarh, District Ambala for the benefit of the appellant.

ii) Objections were invited as per the provisions of the 1894 Act; however, no objections were filed.

iii) Declaration under Section 6 of the 1894 Act was issued on 19.03.2001.

iv) The Land Acquisition Collector/Sub Divisional Officer (Civil) who was duly authorised to give the award, started the process on 25.09.2001 by serving notices under Section 9 of the 1894 Act. After the parties led evidence and considering material on record, vide award dated 12.10.2001 the Land Acquisition Collector determined the rate of compensation at Rs.3.50 lacs per acre, which would be equivalent to Rs.2,187.50 Ps. per Marla and further equivalent to Rs.72.31 per square yard being the market value prevailing on the date of notification under Section 4 of the 1894 Act.

5. The Land Acquisition Collector considered the following factors to determine the rate of compensation:

a) No objections were filed with respect to area and classification of the land in question.

b) The land owners (respondents) did not put forth any specific claim with regard to the market value of the land. The only claim was that fair and reasonable compensation be awarded.

c) The acquired land was purely an agricultural land situated by the side of a link road.

d) Report of the Committee constituted at the Divisional Level for evaluation under the chairmanship of Divisional Commissioner had fixed the market rate of Rs.3,50,000/- per acre after considering the market rates provided from the Office of the District Collector, Ambala.

e) The material provided by the local revenue Patwari regarding sale deeds of similar land executed within closed proximity on the material date.

6. The respondent preferred a reference under Section 18 of the 1894 Act on 19.11.2001 seeking enhancement of compensation primarily for the following reasons:

(i) The acquired land was Chahi land (Irrigated land) which was used for residential purposes, and was situated within the Abadi near the Naraingarh District as well as near the sector carved by Haryana Urban Development Authority and was also near the Government College, Naraingarh and Government Senior Secondary School, Naraingarh.

(ii) The Market value of the acquired land was not less than Rs.30 lacs per acre at the relevant time and therefore the claim of Rs.35 lacs per acre was made.

7. The appellant filed his objections and written statement in the reference proceedings denying all the assertions made by the respondent in the reference.

8. After considering the material on record, the Reference Court/ Additional District Judge, Ambala allowed the reference and determined the market value at Rs.6,310/- per Marla equivalent to Rs.208.59/- per square yard by taking in