The court ruled that proper market value determination for acquired land must prioritize the highest bona fide transaction and that interest is owed from the date possession is taken, not from the date of the award.

JUDGMENT :

Sushil Kukreja, J.

Since all these appeals and cross objections are the offshoots of award, dated 16.08.2011, passed by learned Additional District Judge, Mandi, H.P. (hereinafter referred to as “the learned Reference Court”), the same are taken up together and being disposed of by a common judgment.

2. The instant appeals have been preferred by the appellants, who were petitioners/claimants before the learned Reference Court, under Section 96 of the Code of Civil Procedure read with Section 54 of the LAND ACQUISITION ACT (for short “the Act”) against award dated 16.08.2011, passed by learned Reference Court, with a prayer that the appeals be allowed by setting-aside the impugned award, passed in their petitions and the market value of their acquired land be assessed and declared as not less than Rs.35,000/- per biswa, irrespective of the classification. On the other hand, Himachal Pradesh Housing and Urban Development Authority (respondent No. 2 before the learned Reference Court) preferred cross objections in all the appeals under Section 41 Rule 22 CPC against the impugned award with a prayer that the cross objection(s) be allowed and impugned award passed by the learned Reference Court be suitably modified so as to bring the same in conformity with the provisions of the Act.

3. The facts giving rise to the instant appeals and cross objections are that Government of Himachal Pradesh issued notification for acquisition of land measuring 37-16-01, situated in Muhal Sanyard, Tehsil and District Mandi, H.P., and the said notification was published in Rajpatra on 17.08.1999 and also in news-papers, i.e., Divya Himachal and Virpartap on 10.09.1999. Subsequently, notification under Sections 6 and 7 of the Act was issued on 26.07.2000 and the same was published in Rajpatra on 07.08.2000 and also in two daily newspapers, i.e., Dainik Virpartap and Ajit Samachar on 14.08.2000. Ultimately, the Land Acquisition Collector determined the value of various types of land as under:

4. On the basis of the above valuation, the Land Acquisition Collector awarded compensation of Rs.81,740/- for forest trees and Rs.2,47,876/- for fruit trees. The total compensation awarded to the petitioners/claimants was to the extent of Rs.1,24,59,550/-.

5. The petitioners/claimants feeling aggrieved filed present reference petitions under Section 18 of the Act before the learned Reference Court below for enhancement of the compensation and the learned Reference Court, after considering all the material, passed the impugned award, dated 16.08.2011, whereby the petitioners/claimants were held entitled for enhanced compensation at the rate of Rs.12,741/- per biswa qua the acquired land alongwith solatium, additional amount of compensation and interest etc..

6. The petitioners/claimants still feeling dissatisfied, preferred the instant appeals with a prayer that the appeals be allowed by modifying the impugned award, passed in their petitions and the market value of their acquired land be assessed as not less than Rs.35,000/- per biswa, irrespective of the classification. Conversely, cross-objector, i.e., H.P. Housing & Urban Development Authority, preferred cross-objections in all the appeals with a prayer that the cross objection(s) be allowed and impugned award passed by the learned Reference Court be suitably modified