IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
VIRENDER SINGH, J.
Rama Nand & others - Appellants
Versus
State of H.P. & others - Respondents
RFA No. 341 of 2008 a/w RFA Nos. 346, 347, 348 and 371 of 2008
Decided On : 25-04-2024
Land Acquisition Act - Market Value Assessment - Section 4, 6, 7, 18, 23(1-A), 23(2), 34 - The court decided that the petitioners were entitled to enhanced compensation at the rate of Rs.4,95,000/- per Bigha at the time of Notification under Section 4 of the Act along with statutory benefits. The court held that the development charges for laying sewerage pipelines could not be deducted from the market value of the acquired land, as no development was required for the public purpose for which the land was acquired. The market value of the acquired land was assessed at Rs.55,000/- per biswa and the petitioners were entitled to statutory benefits.
Fact of the Case:
The State of Himachal Pradesh acquired land for construction of sewerage pipeline. The petitioners contested the market value of the acquired land and sought compensation for severance of their holdings and damage caused by the laying of sewerage pipeline.
Finding of the Court:
The court found that the development charges for laying sewerage pipelines could not be deducted from the market value of the acquired land. The market value of the acquired land was assessed at Rs.55,000/- per biswa and the petitioners were entitled to statutory benefits.
Issues: The issues included the assessment of market value of the acquired land, severance of holdings, and damage caused by the laying of sewerage pipeline.
Ratio Decidendi: The court held that development charges for laying sewerage pipelines could not be deducted from the market value of the acquired land, as no development was required for the public purpose for which the land was acquired. The market value of the acquired land was assessed at Rs.55,000/- per biswa and the petitioners were entitled to statutory benefits.
Final Decision: The appeals were partly allowed, and the market value of the acquired land was determined to be Rs.55,000/- per biswa at the time of issuance of notification under Section 4 of the Act. The petitioners were also entitled to statutory benefits.
JUDGMENT :
Virender Singh, J.
The above titled appeals are being disposed of by a common judgment, as all the appeals have been preferred, against the award, dated 28.6.2008, passed by the learned District Judge, Shimla, (hereafter referred to as ‘the learned Reference Court’).
2. Vide award dated 28.6.2008, the learned Reference Court has decided five reference petitions, lead where of, is Land Reference Petition No. 14-S/4 of 2006, titled as, ‘Rama Nand and others Versus State of H.P. & others’.
3. The parties to the present lis are referred to, in the same manner, in which, they were referred to, by the learned Reference Court.
4. Vide award dated 28.6.2008, the learned Reference Court has answered all the five reference petitions, in the following terms :
“In view of the findings recorded on the aforesaid issues is allowed. The petitioners are held entitled to get the enhanced amount of compensation at the rate of Rs.4,95,000/- per Bigha at time of Notification under Section 4 of the Act along with all the following statutory benefits.
(i) Interest at the rate of 12% per annum on the market value from the date of Notification under Section 4 of the Act till the date of award under Section 23 (1-A) of the Act.
(ii) In addition to the market value, the petitioners are held entitled to get solatium or compulsory acquisition charges at the rate of 30% on such market value as provided under Section 23(2) of the Act; and
(iii) Interest at the rate of 9% per annum from the date of Notification under Section 4 of the Act up to one year and, thereafter, at the rate of 15% per annum, till payment is made in the court as provided under Section 34 of the Act.”
5. In order to decide the above appeals, the facts are being borrowed from Reference Petition No. 14-S/4 of 2006, titled as, ‘Rama Nand & others Versus State of H.P. & others’.
6. The State of Himachal Pradesh has acquired the land for construction of sewerage pipe line, in mauza Chhakrial, Tehsil and District Shimla. In this regard, notification, under Section 4 of the Land Acquisition Act (hereinafter referred to as ‘the Act’), has been issued, on 5.2.2004, which was given wide publicity, as per the mandate of the Act. Thereafter, proceedings under Sections 6 and 7 of the Act were conducted and ultimately vide award No. 6/2005, dated 25.4.2005, the land was acquired.
7. The market value of the acquired land has been fixed @ Rs.80,000/- per bigha. Apart from this, statutory relief has also been granted to the petitioners.
8. Since, the petitioners were not satisfied with the market value of the land, assessed by the Land Acquisition Collector, prevailing at the time of issuance of notification, under Section 4 of the Act, as such, they have made reference, under Section 18 of the Act, which, on their request, was forwarded to the learned Reference Court, for adjudication.
9. The petitioners have preferred the reference petition, mainly, on the ground that commercial potentiality of the acquired land, has not been considered, by the Land Acquisition Collector. According to them, the acquired land is situated at mauza Chhakrial, which is part and parcel of Shimla town, and having modern facilities, with regard to education, health, road, electricity, telephone and veterinary etc.
10. In addition to this, they have also sought the amount of compensation, on account of severance of their holdings, as well as, in view of the fact that laying of sewerage pipe line has caused extensive damage to the remaining area of the petitioners, by throwing debris and stones.
11. On the basis of above facts, a prayer has been made that market value of the acquired land may kindly be assessed, keeping in view the commercial potentiality of the acquired land, as in the said area, no one is ready and willing to part with the land, even @ Rs.20,00,000/- per bigha.
12. When, put to notice, the Reference Petition has been contested by the respondents, in which, the factual position, with regard to acquisition of the l
AI
Compensation for land acquisition cannot be restricted to the amount claimed by the landowner; courts must ensure just and fair compensation reflecting true market value.
The main legal point established in the judgment is the relevance of surrounding factors, nature and quality of the land, and potential possibilities in determining the market value under the Land Ac....
(1) Acquisition of land – When large extent of lands are acquired and if sale exemplar, also for large extent is available on record it would be safer to rely on same if they are comparable transacti....
Court should look into sale instances of smaller pieces of land while applying reasonable element of deduction.
The market value of the acquired land can be determined by considering evidence such as sale deeds and witness testimonies, and making reasonable deductions for developmental costs.
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