IMPORTANT POINT
The market value of acquired land should be determined based on the nature of the land, and deductions for development costs should consider the purpose of acquisition. Left-out benefit components may not apply if possession is taken prior to the issuance of notification under Section 4 of the Act.

JUDGMENT :

Jyotsna Rewal Dua, J.

The State as well as the land owners, both sets are aggrieved by the award passed by the learned Reference Court on 09.09.2014. Hence, these two appeals have been preferred.

For convenience, the State (appellant in RFA No. 160 of 2015) and land owners (appellants in RFA No. 89 of 2015) are being referred to hereinafter according to their status before the learned Reference Court. The State is being referred to hereinafter as the “respondents” and the land owners as the “petitioners”.

2. Facts common to both the appeals.

2(i) Petitioners’ land measuring 17 biswas in all situated in village Shamti, Tehsil and District Solan was acquired by the respondents-State for construction of Solan-Meenus road. Out of 17 biswas, 14 biswas was comprised in Khasra No. 414/124/1, 2 biswas in Khasra No. 330/122/1 and 1 biswa was comprised in Khasra No. 330/122/2. The classification of land in these khasra numbers in the revenue record was as under :-

2(ii) The Land Acquisition Collector (LAC) passed the award on 05.10.2010. For determining the market value of land, one year average market value of all kinds of lands situated in Mauza Shamti immediately before the issuance of notification under Section 4 of the Act, was procured by the field staff. The same was sent to the District Collector Solan for approval. The District Collector Solan approved the one year average market value of lands in Mauza Shamti on 10.11.2009. The approval was as per classification of land. Rs.1,52,049.90 per biswa was approved as one year average market value of Ghasni (grazing land). On that basis, market value of the acquired land under Section 23(1) of the Act was determined as Rs.25,84,849/-. 12% additional amount on market value of land w.e.f. 20.06.2009 to 31.08.2010 i.e. Rs.3,62,870/- was also allowed. Rs.7,75,455/- towards 30% solatium was also awarded. The total payable compensation was worked out at Rs.37,23,174/-.

2(iii) The petitioners demanded more compensation for their acquired land, therefore, reference was made under Section 18 of the Land Acquisition Act before the learned District Judge Solan.

Petitioners’ contention before the learned Reference Court was that market value of the land at the time of publication of notification under Section 4(1) of the Act was Rs.75,00,000/ - per biswa; The entire acquired land should have been assessed as a single unit at one & same rate of Rs.75,00,000/- per biswa irrespective of its kind mention in the revenue record. Interest on certain components and some other benefits allegedly not made available to the land owners under the Act, were also claimed.

The respondents-State defended the award passed by the LAC. It denied that market value of land was Rs.75,00,000/- per biswa or that the land compensation should have been assed as single unit at the highest rate irrespective of its classification mentioned in the revenue record.

Sh. Kanti Sawroop appeared for the petitioners as PW-1. The award passed by the LAC was produced by him as Ex. PX. Sh. Bhagat Ram Sharma, Assistant Engineer, HP PWD appeared for the respondents as RW-1. He also produced a registered sale deed No. 997/2007, dated 28.02.2007 (Ex. RW-1/B) under which 5 biswas of land (grazing land) was sold for Rs.5,00,000/- in village Shamti.

2(iv) On consideration of entire material on record, learned Reference Court held that as per award Ex. PX, different types of land had been sold on different dates, therefore, it would be reasonable to calculate average market value of the land on the basis of following rates mentioned in Ex. PX.