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2025 Supreme(HP) 1496

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
ROMESH VERMA, J.
Secretary (IPH) and Others – Appellants
Versus
Mangal Devi (Died and Deleted) and Others – Respondents
R.F.A. No. 233 of 2017, C.O. No. 24 of 2022
Decided On : 07-11-2025

Advocates Appeared:
For the Appellant : J.S. Guleria
For the Respondents: Bhuvnesh Sharma, Shekhar Badola, Parv Sharma

Limitation under Section 18(b) of Land Acquisition Act runs from actual/constructive knowledge of award contents if no Section 12(2) notice; market value from pre-notification sales with escalation.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4, 6, 12, 18, 23, 28 - Limitation for reference under Section 18 - Where claimants neither present nor represented at award nor served notice under Section 12(2), limitation period under proviso to Section 18(2)(b) runs from date of actual or constructive knowledge of essential contents of award - Knowledge acquired during unrelated proceedings when government counsel discloses acquisition triggers limitation - Reference petition filed within months of such knowledge held within time even years after award date - Condonation application also duly considered. (Paras 10-26)

(B) Land Acquisition Act, 1894 - Section 23 - Compensation determination - Market value assessed from sale deeds prior to Section 4 notification, applying escalation for relevant year - Subsequent sale deeds post-notification unreliable due to potential price inflation - Valuation at Rs.14,000 per marla for barani land held just and reasonable - No enhancement warranted absent evidence. (Paras 27-46)

Facts of the case:
Land utilized for water supply scheme. Section 4 notification issued 1.2.1999, Section 6 on 21.1.2000. Collector awarded compensation 23.3.2002. Claimants unaware till 7.12.2005 when informed in unrelated appeal by government counsel. Reference petition with condonation filed 27.2.2006. Reference court enhanced to Rs.14,000 per marla plus statutory benefits. State appealed limitation and excess compensation; claimants cross-objected for further enhancement.

Findings of Court:
Reference within limitation; compensation at Rs.14,000 per marla affirmed with solatium, interest and other charges under Sections 23(1A), 23(2), 28.

Issues: Whether reference petition time-barred; whether reference court compensation excessive or inadequate.

Ratio Decidendi: Knowledge of award means awareness of essential contents, not mere fact of passing, ensuring fair play - Supported by precedents emphasizing communication or constructive notice - Prior sales best evidence for market value, post-notification deeds suspect.

Result: Appeal and cross-objections dismissed.

Table of Content
1. land acquisition for water scheme; lac and reference awards detailed. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9)
2. reference petition timely from knowledge of award. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
3. limitation starts from actual/constructive knowledge of award contents. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25)
4. compensation based on pre-notification sale deeds. (Para 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35)
5. post-notification sales unreliable for market value. (Para 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47)

JUDGMENT :

ROMESH VERMA, J.

1. The present appeal arises out of the award, as passed by the learned Additional District Judge Hamirpur, dated 23.9.2015, whereby the reference petition under Section 18 of the LAND ACQUISITION ACT 1894 (for short, the Act), as preferred by the claimants/respondents, has been allowed. Whereas, the respondents have filed the cross-objections for enhancement of the compensation amount.

2. The facts of the case are that the land was utilized by the present appellants-State for the construction of Water Supply Scheme (WSC) Hamirpur in village Ghanal Khurd, Mauja Bajuri, Tehsil and District Hamirpur. Notification under Section 4 of the Act was issued by the Land Acquisition Collector on 1.2.1999 and pursuant thereto, notification under Section 6 of the Act was issued on 21.1.2000. The Land Acquisition Collector, HPPWD, Central Zone, Mandi, vide award dated on 23.3.2002 awarded the compensation in favour of the respondents for the acquisition of the land as under:-

3. As far as house/structure and trees are concerned, it was observed by the LAC that neither there is any house/structure nor any tree is existing over the acquired land. The LAC awarded compulsory acquisition charges @ 30% of the market value of land as per the Act to the respondents in addition to the the market value of the land under Section 23(2) of the Act, which was worked out to be Rs.10078/-. Further, in addition to the above, an amount @ 12% per annum was ordered to be paid to the respondents in addition to the market value of the land under Section 23(1-A) of the Act from the date of publication of notification under Section 4 to the date of award of the Collector. Thus, compensation under the aforesaid provisions of law for the period w.e.f. 4.9.1999 to 23.3.2002 was worked to be Rs.10293/-.

4. The LAC also awarded interest @ 9% per annum for the 1st year and thereafter 15% per annum w.e.f. 4.9.1999 to 31.5.2002, amounting to Rs.11803/-. Thus, the total amount of compensation, as was finally determined and awarded for the acquired land, reads as under:-

5. Feeling dissatisfied with the aforesaid award passed by the LAC, the respondents preferred a petition under Section 18 of the Act before the learned reference court for enhancement of the compensation amount. Along with the petition, an application under Section 5 of the Limitation Act for condonation of delay was also preferred by the respondents and the same was filed on 27.2.2006.

6. The learned reference court vide its award dated 23.9.2015 allowed the reference petition and granted the compensation in favour of the respondents as follows:-

7. In addition to above, the learned reference court also held entitled the respondents for other charges as permissible under Section 23(1A), 23(2) and Section 28 of the Act.

8. The instant appeal has been preferred by the appellants-State against the award dated 23.9.2015, whereas the respondents have also preferred cross objections for enhancement of the amount of compensation.

9. I have heard Mr. J.S. Guleria, learned Deputy Advocate General, appearing for the appellants/State and Mr. Bhuvnesh Sharma, learned Senior Advocate, duly assisted by Mr. Parv Sharma, Advocate, appearing for the respondents and has also gone through the records carefully.

10. Learned Deputy Advocate General has made twofold submissions in order to substantiate his contentions. Firstly, according to

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