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1979 Supreme(P&H) 63

PUNJAB & HARYANA HIGH COURT
S.S.Sandhawalia and Gokal Chand Mital JJ.
Brij Nandan
Versus
State Of Haryana
Regular First Appeal No. 416 of 1974,
Decided On : APRIL 4, 1979

The market value of land acquired for development should be determined based on its potential for development, considering its location, situation, and proximity to urban areas and major transportation routes, rather than solely on its agricultural value.

Headnote:

LAND ACQUISITION - Compensation - Market value of land - Determination - Factors to be considered - Potential for development - Categorisation of land into blocks based on proximity to abadi or highway - Held, categorisation unsustainable - Uniform rate of compensation to be awarded - Compensation for henna plantation - Valuation upheld - Apportionment of compensation between landowners and lessees - Terms of lease deed to govern.

Fact of the Case:

The Collector awarded compensation for the acquired land, classifying it into three categories based on quality and further sub-dividing each category into three kinds. The landowners challenged the assessment, claiming that the land should have been assessed primarily on its potential for development as a residential, commercial, and industrial area. The State contested the claim, asserting that the land was correctly assessed as agricultural.

Finding of the Court:

The Court held that the Collector erred in assessing the land solely as agricultural and that the learned District Judge erred in categorizing the land into four blocks based on proximity to the abadi or highway. The Court found that the land had the potential for development as a residential, commercial, and industrial area and that a uniform rate of compensation should be awarded.

Issues: 1. Whether the market value of the land should be determined based on its potential for development or its agricultural value? 2. Whether the categorization of land into blocks based on proximity to the abadi or highway is sustainable? 3. What is the appropriate compensation for the henna plantation? 4. How should the compensation be apportioned between the landowners and lessees?

Ratio Decidendi: 1. The market value of the land should be determined based on its potential for development, considering its location, situation, and proximity to urban areas and major transportation routes. 2. The categorization of land into blocks based on proximity to the abadi or highway is unsustainable and does not provide a meaningful basis for determining compensation. 3. The compensation for the henna plantation should be based on the prevailing market value, taking into account the cost of cultivation, maintenance, and harvesting, as well as the income generated from the plantation. 4. The apportionment of compensation between the landowners and lessees should be governed by the terms of the lease deed.

Final Decision: The Court enhanced the compensation for the land acquired to a uniform rate of Rs. 10 per square yard, awarded a solatium at the statutory rate of 15%, and interest at the rate of 6% per annum from the date of taking over possession. The compensation for the henna plantation was upheld at the awarded rate of Rs. 4,840 per acre or Re. 1 per square yard. The apportionment of compensation between the landowners and lessees was to be made in accordance with the findings on issues Nos. 6-A and 6-B. The appeals and cross-objections by the claimants were allowed in the aforesaid terms, subject to the court-fee paid by them. They were also entitled to their costs. The appeals preferred by the State of Haryana were dismissed, with each party bearing their own costs.

Judgment

S.S.SANDHAWALIA, J.

1. The galaxy of the learned counsel appearing for the parties in this set of fifty-three Regular First Appeals are agreed that the issues of law and fact are so substantially common, if not identical, that all these appeals may be disposed of by a single judgement.

2. By a notification under Section of the Land Acquisition Act dated 6th Sept. 1966, published in the Government Gazette on 23rd Sept. 1988, an area at 248.30 acres was sought to be compulsorily acquired for the public purpose of the planned development of Sector 16 of the New Industrial Township of Faridabad. The consequential notification under S.6 followed and in the subsequent proceedings the Collector rendered his award on the 20th Jan. 1968, whereby he classified the whole of the area aforesaid into three categories, A, B and C and then proceeded to further subdivide each category into three kinds as shown in the following table :-

Class

Cultivated

Ghair.mumkin.

Banjar land.


Category A

Rs. 605/-

Rs. 400/-

Rs. 180/-


Category B

Rs. 380/-

Rs. 200/-

Rs. 120/-


Category C`

Rs. 190/-

Rs. 152/-

Rs. 100/-


It is manifest from the above that the Collector considered the whole land as agricultural and assessed its market value primarily on its quality as agricultural land He further awarded compensation for the buildings, wells, trees and henna plants (for which the land in question seems to he particularly suited) in existence on the land in dispute primarily in accordance with the assessment of the value thereof made by the Sub-Divisional Officer. The landowners feeling dissatisfied with the assessment of value both as regards the land and appendages thereto made as many as ninety-three claim-applications for references under S.18 of the Act of these 91 references were consolidated and tried together (two being decided separately),

3 The State of Haryana in contesting the aforesaid references took up the stand that more than ample compensation has already been awarded to the claimants. It was stated on its behalf that the land in dispute had been correctly assessed as agricultural and the stand of the claimants that the same had primarily to be determined with regard to its potentiality of being used for residential, commercial and industrial purposes, was sought to be denied. The claim with regard to the fragmentation of the land, as also with regard to the fruit bearing and non-fruit bearing plants, etc., was further not admitted. On the pleadings of the parties, the following issues were originally framed :-

1. What was the market value of the land at the time of publication of the notification under S.4 of the Land Acquisition Act ?

2. What was the market value of the wells, tube-wells and construction if any, which were acquired dong with the land at the time of notification under S.4 of the Land Acquisition Act ?

3. Whether any fruit bearing trees and non-fruit bearing trees existed on the acquired land. If so, to what compensation are the petitioners entitled in respect to them ?

4. What was the market value of the henna plantation acquired with the land at the time of notification under S.4 of the Act ?

5. Whether any severance and fragmentation of other lands of the petitioners was effected due to the acquisition, if so to what compensation are the petitioners entitled this account ?

6. Whether the claim of the petitioners is barred by the provisions of S.25 of the Land Acquisition Act ?

7. Relief Later on, on 17th July, 1992 the following in two additional issues were struck :-

6-A. Who is the person entitled to receive compensation ?

6-B. In case the compensation has to be apportioned, in what proportion should Lt be paid to different claimants ?

4. Before us challenge has been laid only to the findings on Issues Nos. 1, 4, 6-A and 6-B. It is, therefore, unnecessary to advert to the findings on the remaining issues, which we hereby affirm for the detailed reasons recorded by the learned District Judge, Gurgaon.

5. On the critical




































































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