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2018 Supreme(HP) 882

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
TARLOK SINGH CHAUHAN, J.
GENERAL MANAGER, NHPC AND ANOTHER - Appellant
Versus
RATTAN DASS AND OTHERS - Respondent
Regular First Appeal No. 430 to 442 of 2010
Decided on : 08-05-2018

Advocate Appeared:
Ashok Sharma, Bhupinder Thakur, K.D Shreedhar, Shreya Chauhan, Sudhir Bhatnagar, Sunil Mohan Goel, Vinod Thakur, Vipul Sharda, Advocates

The main legal point established in the judgment is that if the entire land is put for public use and no area is left out for carrying out any developmental activity, then the claimants are entitled for compensation for the entire acquired land, at uniform rates, regardless of its categorization. The court also emphasized the provisions of Section 25 of the Land Acquisition Act and its amendments, highlighting that the amount of compensation awarded by the Court cannot be lower than the amount awarded by the Collector.

Headnote:

Land Acquisition - Uniform Compensation - Land Acquisition Act, Section 4, Section 18, Section 25 - The court discussed the legal principle that if the entire land is put for public use and no area is left out for carrying out any developmental activity, then the claimants are entitled for compensation for the entire acquired land, at uniform rates, regardless of its categorization. The court also highlighted the provisions of Section 25 of the Land Acquisition Act and its amendments, emphasizing that the amount of compensation awarded by the Court cannot be lower than the amount awarded by the Collector.

Fact of the Case:

A notification under Section 4 of the Land Acquisition Act was issued for the construction of various components of a hydroelectric project. The claimants challenged the value of the land determined by the Collector and sought modification and enhancement of compensation. The Reference Court upheld the claimants' entitlement to a uniform rate of compensation at Rs 2,87,500 per bigha as determined by the Collector.

Finding of the Court:

The court found that the entire acquired land was put to public purpose and that no error existed in the uniform determination of the market value of the land. The court also held that the award passed by the Collector could not be lower than the amount awarded by the Reference Court.

Issues: The issues included the determination of compensation for the acquired land and the interpretation of Section 25 of the Land Acquisition Act, along with its amendments.

Ratio Decidendi: The court's decision was based on the legal principle that if the entire land is put for public use and no area is left out for carrying out any developmental activity, then the claimants are entitled for compensation for the entire acquired land, at uniform rates, regardless of its categorization. The court also emphasized the provisions of Section 25 of the Land Acquisition Act and its amendments, highlighting that the amount of compensation awarded by the Court cannot be lower than the amount awarded by the Collector.

Final Decision: The appeals were dismissed, and the court upheld the award passed by the Reference Court, leaving the parties to bear their own costs.

Judgement Key Points

What is the principle for uniform compensation when the entire land is used for public use under Land Acquisition Act?

What is the effect of Section 25 of the Land Acquisition Act on the court's award relative to the Collector's amount?

What is the court's stance on awarding uniform market value irrespective of land categorization?


JUDGMENT :

TARLOK SINGH CHAUHAN, J.

1. Since all these appeals arise out of the same award, they were taken up together for consideration and are being disposed of by this common judgment.

2. For the sake of convenience and to maintain clarity, facts of RFA No. 430 of 2010, titled as 'General Manager, NHPC vs. Rattan Dass and others' are being referred to.

3. Brief facts of the case are that a notification under Section 4 of the Land Acquisition Act (for short 'Act') was issued by State of Himachal Pradesh on 9.2.2015 whereby it was proposed to acquire the land situated at Phati-Manyasi, Suchain-Kanon and Kotla, District Kullu, H.P. for the construction of various components of Parbati Hydroelectric Project.

4. After the completion of all codal formalities under the Act, the Collector, after taking into consideration one year average price of the land determined the value of the land on the basis of its quality in the following manner:-
      

Sr.No.

Land Type

Rate per Bigha (Rs.)

1.

Ropa Awwal

3,56,500.00

2.

Ropa Som

1,72,500.00

3.

Bathal Awal

2,87,500.00

4.

Bathal Dom

1,26,500.00

5.

Bathal Som

80,500.00

6.

Bathal Chaharam

46,000.00

7.

Banjar Kadeem

11, 500.00

8.

Bageecha Bathal

1, 72, 500.00

9.

Gair Mumkin

---

5. The claimants/respondents, being aggrieved and dis-satisfied with the award, preferred Reference Petition under Section 18 of the Act before the Collector, wherein it was submitted that the market value of the land under acquisition had not been determined in accordance with law and, therefore, the same was liable to be modified and enhanced.

6. That the learned Reference Court after taking into consideration the purpose of acquisition of the land hold the claimants to be entitled to a uniform rate of compensation at Rs 2, 87, 500/- per bigha as had been determined by the Collector.

7. Aggrieved by the award so passed, the beneficiaries have filed these appeals questioning the award on number of grounds as taken in the appeal.

8. At the outset, it may be observed that it is settled principle of law that if the entire land is put for a public use and no area is left out for carrying out any developmental activity, then the claimants are entitled for compensation for the entire acquired land, at uniform rates, regardless of its categorization. This aspect of the case has been considered by a coordinate Bench of this Court in RFA No. 282 of 2010 titled Suresh Kumar and others vs. Collector Land Acquisition, NHPC, decided on 22.10.2016 alongwith connected matters, wherein it was observed as under:

"26. It is a settled principle of law that if the entire land is put for a public use and no area is left out for carrying out any developmental activity, then the claimants are entitled for compensation for the entire acquired land, at uniform rates, regardless of its categorization.

27. The apex Court in Haridwar Development Authority vs. Raghubir Singh & others, (2010) 11 SCC 581 has upheld the award of compensation on uniform rates.

28. In Union of India vs. Harinder Pal Singh and others, (2005) 12 SCC 564, while determining the compensation for acquisition of land pertaining to five different villages, the apex Court uniformly awarded a sum of Rs.40,000/- per acre, irrespective of the classification and the category of land.

29. Further, in Nelson Fernades vs. Special Land Acquisition Officer, (2007) 9 SCC 447 while dealing with the case where the land was acquired for laying a Railway line, the Court held that no deduction by way of development charges was permissible as there was no question of any development thereof.

30. Similar view stands taken by this Court in Gulabi and etc. Vs. State of H.P., (1998) AIR(HP) 9 and later on in H.P. Housing board vs. Ram Lal & Ors., 2003 3 Shim. L.C. 64, which judgment has attained finality as SLP (Civil) No. 15674-15675 of 2




















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