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2025 Supreme(HP) 1714

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Sushil Kukreja, J.
BBMB through S.E. Pong Dam Circle Talwara Township & another - Appellant
Versus
Ashwani Kumar & others - Respondent
RFA No. 116 of 2010
Decided On : 04-12-2025

Advocate Appeared:
For the Appellants :Mr. N.K. Sood, Senior Advocate, with Mr. Aman Sood, Advocate
For the Respondents:Mr. Amit Sharma, Advocate Ms. Vaishali Lakhanpal, Advocate, vice Mr. Parv Sharma, Advocate Mr. Shiv Pal Manhans, Senior Panel Counsel, Mr. Manoj Chauhan and Mr. Amandeep Sharma, Additional Advocates General, with Mr. Ankush Thakur, Deputy Advocate General

Uniform market value irrespective of classification for single-unit acquisition; additional interest as damages from pre-notification dispossession till Section 4 date upheld based on unrebutted average sale price document.

Headnote:(A) Land Acquisition Act, 1894 - Sections 18, 54 - Enhancement of compensation by Reference Court to Rs.26,00,000/- per hectare based on average sale price certificate for banjar kadeem land prior to acquisition date - Document prepared by public official admissible under Evidence Act and unrebutted - Uniform market value irrespective of land classification upheld as land acquired as single unit for public purpose - Additional interest as damages from dispossession date till Section 4(1) notification date directed where possession taken long prior to formal acquisition. (Paras 14-16, 18-20, 22-26)

(B) Market value determination - Price willing purchaser would pay willing seller at arm's length; consider existing advantages, potentiality for development; rely on comparable bona fide sales nearby within reasonable time of notification possessing similar advantages - Average sale documents reliable if genuine and based on official records. (Paras 7-11)

(C) Interest for unauthorized possession - Where possession taken years before acquisition proceedings, claimants entitled to additional interest on enhanced compensation from dispossession till Section 4 notification as damages for period out of possession. (Paras 23-26)

Facts of the case:
Land acquired for dam reservoir project; possession/submersion in 1974 but formal award in 2000; claimants sought enhancement under Section 18 alleging inadequate compensation ignoring average sales and trees; Reference Court enhanced to Rs.26 lakhs per hectare with solatium, interest; appeal challenging excessiveness, uniform rate, and interest from 1974.

Findings of Court:
Enhancement upheld relying on average sale price certificate (1998-1999) admitted correct even by defense witnesses; uniform rate justified as single block acquisition; award modified to explicitly grant additional interest as damages from 1974 dispossession till 2000 Section 4 notification.

Issues: Whether average sale price document reliable for market value; propriety of uniform compensation ignoring classification; entitlement to interest from 1974 dispossession preceding award by decades.

Ratio Decidendi: Market value correctly fixed per unrebutted official average sales document predating acquisition; uniform rate applies to entire acquired block irrespective of classification/nature when used/developed as single unit; additional interest payable as damages for prolonged dispossession without formal acquisition.

Result: Appeal disposed of; impugned award modified to include additional interest from dispossession till notification date, rest unchanged.

Table of Content
1. appeal against enhanced land acquisition compensation award (Para 1 , 2 , 3)
2. parties' contentions on impugned award validity (Para 4 , 5 , 6)
3. market value via willing buyer-seller, comparable sales (Para 7 , 8 , 9 , 10 , 11)
4. evidence of witnesses and sale documents examined (Para 12 , 13)
5. average sale certificate proves market value unrebutted (Para 14 , 15 , 16)
6. uniform valuation for entire land block irrespective classification (Para 17 , 18 , 19 , 20)
7. additional interest from dispossession till acquisition notification (Para 21 , 22 , 23 , 24 , 25 , 26 , 27)

JUDGMENT :
Sushil Kukreja, Judge.

The instant appeal has been preferred by the appellants/Bhakra Beas Management Board (for short BBMB), who were respondents No. 3 and 4 before the Court below (hereinafter referred to as “the appellants”) under Section 54 of the Land Acquisition Act, 1894 (for short “the Act”) against award dated 16.01.2010, passed by learned District Judge, Kangra at Dharamshala, H.P. (hereinafter referred to as “the learned Reference Court”), in Reference Case No. 3 of 2008/2001, whereby the learned Reference Court partly allowed the petition filed by the petitioner/claimants (respondents herein) enhancing the market value of the acquired land to Rs.26,00,000/- per hectare.

2. The brief facts of the case are that the petitioners/claimants preferred a petition under Section 18 of the Act, wherein they averred that their land in Tikka Katrah Mouza Katrah, Tehsil Fatehpur, District Kangra, H.P., was acquired under the Act for the purpose of Beas Dam Project and award was announced on 06.07.2000, whereby inadequate compensation was awarded by the Land Acquisition Collector. The petitioners pleaded that the Land Acquisition Collector did not consider the average sale value and also did not grant compensation for the trees submerged in Pong Dam reservoir. The possession was taken by the authorities in the year 1974, thus the petitioners are legally entitled for interest @ 12% from the date of possession. Lastly, the petitioners prayed that their petition be allowed and compensation be enhanced.

3. The learned Reference Court, partly allowed the petition of the petitioners/claimants by enhancing the market value of the acquired land to Rs.26,00,000/- per hectare alongwith solatium, interest etc.. Hence, the appellants/BBMB preferred the instant appeal under Section 54 of the Act with a prayer to quash and set-aside the impugned award dated 16.01.2010, passed by the learned Reference Court.

4. I have heard the learned Senior Counsel for the appellants, learned counsel/vice counsel/Additional Advocate General for the respective respondents and also carefully examined the records.

5. Mr. N.K. Sood, learned Senior Counsel for the appellants contended that the impugned award is based on conjectures and surmises and the findings so recorded by the learned Reference Court are not supported by the evidence on record. He further contended that the learned Reference Court had ignored the material evidence on record and granted excessive amount of compensation arbitrarily without any reason. He also contended that the learned Reference Court failed to correctly calculate the market value of the acquired land and granted the award excessively and arbitrarily without any sufficient reason. Lastly, he submitted that the appeal be allowed and impugned award dated 16.01.2010, passed by the learned Reference Court be quashed and set-aside.

6. Conversely, learned Counsel/vice counsel for the respondents supported the impugned award. They contended that the learned Reference Court had rightly enhanced the market value of the acquired land @ Rs.26,00,000/- per hectare. They further contended that the acquired land was valuable, as such the instant appeal, being devoid of merits, be dismissed.

7. As per the settled principle of law, compensation for the land acquired has to be determined at market value. Market value is the price that a willing purchaser wo

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