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2009 Supreme(P&H) 643

PUNJAB & HARYANA HIGH COURT
Rajesh Bindal, J.
Mrs.Avtar Sachdev
Versus
Union Territory, Chandigarh
Regular First Appeal No. 4328 of 2006,
Decided On : APRIL 2, 2009

The main legal point established in the judgment is the determination of fair compensation for acquired land under the Land Acquisition Act, 1894, considering the market value, appreciation of prices, and the principle of granting compensation.

Headnote:

Land Acquisition - Compensation - Land Acquisition Act, 1894 - Section 4, Section 23 - The judgment discusses the determination of compensation for acquired land for the development of the third phase of Chandigarh. The court considered the market value of the acquired land, the principle of granting compensation, and the valuation of different types of land. The court determined the compensation for the acquired land and modified the award of the lower court.

Fact of the Case:

The case involved the acquisition of land for the development of the third phase of Chandigarh. The landowners sought further enhancement of compensation, while the Union Territory/Union of India sought a reduction of compensation awarded by the lower court.

Finding of the Court:

The court determined the compensation for the acquired land, considered the location of the land, and assessed the value based on previous awards and the appreciation of prices in the area. The court also addressed the valuation of different types of land and modified the award of the lower court.

Issues: The issues included the determination of fair compensation for the acquired land, the principle of granting compensation, and the valuation of different types of land.

Ratio Decidendi: The court considered the appreciation of prices in the area, previous awards, and the principle of granting compensation at a flat rate. The court also emphasized the need for independent evidence to determine the value of the land.

Final Decision: The court determined the compensation for the acquired land, modified the award of the lower court, and disposed of the appeals and cross-objections accordingly.

Judgment

Rajesh Bindal, J.

1. This order will dispose of a bunch of 394 appeals, as common questions of law and facts are involved.

2. RF.A. Nos.896, 989 to 1009, 1215 to 1231, 1393 to 1397, 1399, 1400, 1407, 1408, 1445, 2440, 2441 of 2005, 124, 125, 194 to 198, 478, 548 to 556, 1156 to 1158, 1244, 1762, 1879, 2055, 2056, 4238, 4301, 4356, 4396 to 4398, 4453 to 4458, 4464, 4479, 4480, 4515 to 4519, 4643, 4648, 4667 of 2006, 51, 62, 63, 73 to 77, 136, 149, 154, 197, 326, 364, 368, 374, 376, 420 to 424, 738, 796, 1094, 1587, 1666 to 1668, 1690 to 1692, 236.8, 2770 to 2772, 2965 to 2978, 3017 to 3020, 3026, 3027, 3062, 3071, 3072, 3101 to 3103, 3408 to 3413, 3788, 3789, 3794 of 2007 and 3522 of 2008 have been filed by the land owners seeking further enhancement of compensation for the acquired land.

3. R.F.A. Nos.1447 to 1451, 1453 to 1459, 1461, 1464, 1466 to 1470, 1474, 1475, 1477 to 1496, 1500, 1501, 1502, 1600,1604, 1606, 1612, 1685 of 2005, 3724 to 3727, 3729 to 3735, 3737, 3738, 3740 and 3741 of 2006, 377 to 419, 1067, 2081 to 2106, 2267 to 2269, 3118 to 3152, 3483 to 3513, 3515 to 3524, 3526, 3625 to 3633 of 2007 have been filed by Union Territory/Union of India seeking reduction of compensation awarded by the learned court below.

4. In R.F.A. Nos.381 and 2087 of 2007, the land owners have filed cross objections seeking further enhancement of the compensation for the acquired land.

5. Briefly, the facts are that land measuring 114.43, 71.69 acres and 42.95 acres, situated in villages Kajheri, Badheri and Palsora respectively was acquired vide notification dated 3.8.1999, issued under Section 4 of the Land Acquisition Act, 1894 (for short, the Act) for development of third phase of Chandigarh. The Land Acquisition Collector (for short, the Collector) awarded compensation @ Rs.l 1,95,198/- per acre. Aggrieved against the same, the land owners filed objections which were referred to the learned Additional District Judge, Chandigarh, who keeping in view the material placed on record by the parties, determined the market value of the acquired @ Rs.l5,05,000/- per acre.

6. Vide another notification dated 4.5.2000, issued under Section 4 of the Act, land measuring 116.231 acres, situated in villages Kajheri and Nizampur Kumbran and adjoining land was also acquired for development of third phase of Chandigarh. The Collector awarded a sum of Rs.l3,05,776/- per acre for Chahi, Barani, Gair Mumkin and Banjar Qadim kinds of land and Rs.5,44,075/- per acre for Gair Mumkin Khadaan and Choe etc. Aggrieved against the same, the land owners filed objections which were referred to the learned Additional District Judge, Chandigarh, who keeping in view the material placed on record by the parties, determined me market value of the acquired land @ Rs.l6,40,450/-per acre.

7. Learned counsel for the land owners submitted that acquisition in the present case was carried out for the purpose of utilisation as residential and commercial area in third phase of Chandigarh. Practically, there was no land left out in the area after the present acquisition. In fact, the entire land had already been acquired and developed. The area of Mohali abutting third phase of Chandigarh was already developed. For the acquisition carried out vide notification dated 20.8.1998 for the land falling in the same area pertaining to the same villages, this Court in R.F.A. No.3921 of 2007-Arunash Chander Kaushik and others v. Union Territory, Chandigarh, decided on 10.2.2009, had assessed the market value of the acquired land at Rs. 17,32,000/- per acre. There is a gap of one year, 8 months and 14 days in the two acquisitions. For this intervening period, the land owners should be granted increase at least @ 12% per annum. He further submitted that increase in the value of the land in Chandigarh and its periphery was at much more rate. Reference was made to the facts noticed by the learned court below in paragraph 8 of the impugned award to submit that vide letter (Ex.Pl) dat





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