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2026 Supreme(HP) 100

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
SUSHIL KUKREJA, J.
Surinder Singh – Appellant 
Versus 
Collector Land Acquisition & Another - Respondents
RFA No. 3 of 2012 with RFAs No. 622, 623 & 624 of 2011 with Cross Objections No. 1000 to 1003 of 2012
Decided On : 06-04-2026

Advocates Appeared:
For the Appellant :Mr. V.S. Chauhan, Senior Advocate with Ms. Bhavani Negi, Advocate, Mr. Deepak Kaushal, Senior Advocate with Mr. Aditya Chouhan and Mr. G.R. Palsra, Advocates.
For the Respondent/State:Mr. B.N. Sharma, Mr. Manoj Chauhan and Mr. Raj Negi, Additional Advocates General with Mr. Ankush Thakur, Mr. Balvinder Singh Ballu and Ms. Archna Negi, Deputy Advocates General.
For the Cross-objectors :Mr. Bhupinder Gupta, Senior Advocate, with Mr. Ajeet Singh Pal, Advocate.

Market value for acquired land must reflect the highest comparable sales, with deductions for development costs and interest calculated from possession date, not award date.

Headnote:(A) Land Acquisition Act - Sections 18, 23, and 34 - Appeals for enhancement of compensation - Court ruled market value of acquired land at Rs. 24,000/- per biswa, irrespective of classification; awarded solatium and interest according to statutory provisions - Validity of valuation based on prior transactions assessed - Interest to be paid from actual possession date, not from award date. (Paras 28, 32)

(B) Market value determination - Considers potential of land, evidence from sales, and deductions for development; emphasized that averaging sales is inappropriate - Compensation must reflect true market dynamics based on comparable transactions. (Paras 10, 11, 26)

(C) Criteria for payments and deductions in land acquisition decisions contingent on several factors like amenities available and land usage purpose. (Paras 12, 24, 25)

Facts of the case:
Appeals arise from a 2011 award concerning land acquisition for urban development, where appellants sought significantly higher compensation than awarded based on purported market value and classification of land types.

Findings of Court:
Enhanced compensation determined at Rs. 24,000/- per biswa after deductions for development charges; all valuation and interest judgments made based on statutory guidelines.

Issues: The court addressed the appropriateness of the land valuation methods employed, the deduction practices for development, and the correct starting date for interest payments on compensation.

Ratio Decidendi: Confirmed that appropriate market valuation for compensation should not utilize an average of sales; emphasized reliance on the highest comparable values and correct legal interpretations of the Act regarding interest payments.

Result: Appeals partially allowed, compensation enhanced.

Table of Content
1. introduction of the case and background of the acquisition. (Para 1 , 2 , 3 , 4 , 5)
2. arguments presented by the appellants and cross-objectors regarding the compensation. (Para 7 , 8)
3. overview of the legal principles regarding market value determination. (Para 9 , 10)
4. judicial precedents and principles relevant to market value assessment. (Para 11 , 12 , 13 , 14 , 21)
5. determination of interest payment and its basis under the act. (Para 25 , 28 , 30)
6. final conclusion and orders regarding compensation and interest. (Para 33)

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:

Classification of LandRate per Bigha
Barani bagicha phaldarRs. 4,05,280/-
Barani abalRs. 3,09,026/-
Barani doamRs. 2,53,300/-
Banjar kadeemRs. 75,990/-
KaraterRs. 60,792/-

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 allowe




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