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1992 Supreme(P&H) 1078

PUNJAB & HARYANA HIGH COURT
N.K.Kapoor, J.
Brijinder Singh
Versus
Land Acquisition Collector, P.S.E.B.And Anr.
Regular First Appeal No. 1720 of 1989,
Decided On : DECEMBER 2, 1992

The formula for evaluation of fruit trees published by the Department of Horticulture Punjab on 15th May, 1985 is the latest publication and is applicable for determining the compensation for fruit bearing trees.

Headnote:

LAND ACQUISITION - COMPENSATION - FRUIT BEARING TREES - EVALUATION - FORMULA - PUBLICATION OF 1985 - APPLICABLE - LITCHI TREES - FRUIT BEARING FROM 5TH YEAR AS PER 1966 FORMULA - NO REASON FOR ENHANCEMENT TO 8TH YEAR IN 1985 FORMULA - COMPENSATION AWARDED AS PER 1985 FORMULA.

Fact of the Case:

Land measuring 151 Kanals 10 Marias was acquired by the State of Punjab for the purpose of construction of a Power House. Notification under Section 4 and 6 of the Land Acquisition Act was issued. Land Acquisition Collector awarded compensation to different right holders. Claimants, feeling dissatisfied with the quantum of compensation, presented applications under Section 18 of the Act for reference to the court for enhancement of compensation. Additional District Judge awarded compensation at a uniform rate of Rs. 22,800/- per acre in respect of all kinds of land and granted compensation for fruit bearing trees as per the formula published by the Department of Horticulture Punjab on 15th May, 1985. Claimants as well as P. S. E. B. filed appeals.

Finding of the Court:

The court found that the acquired land had sufficient potential for development. The hospital stated to be adjacent to the acquired land was in existence. The court determined the market value of the land at the rate of Rs. 68,000/- per acre. The court also awarded compensation for the fruit bearing trees as per the rates mentioned in the publication of 1985. The court held that the claimants were entitled to 12 per cent increase as per Section 23 (1- A) of the Act and solatium at the rate of 30 per cent and interest at the rate of 9 per cent per annum on the enhanced amount for the first one year from the date of taking possession and at the rate of 15 percent per annum for the subsequent year till realization with proportionate costs.

Issues: 1. Whether the market value of the acquired land was determined correctly? 2. Whether the claimants were entitled to compensation for fruit bearing trees as per the formula published by the Department of Horticulture Punjab on 15th May, 1985?

Ratio Decidendi: 1. The market value of the land is determined by reference to the price which a seller might reasonably expect to obtain from a willing purchaser. The sale deeds of the lands situated in the vicinity and the comparable benefits and advantages which they have, furnish a rough and ready method of computing the market value. 2. The formula for evaluation of fruit trees published by the Department of Horticulture Punjab on 15th May, 1985 is the latest publication and is applicable for determining the compensation for fruit bearing trees.

Final Decision: The court allowed the claimants' appeals and awarded compensation at the rate of Rs. 68,000/- per acre in respect of the acquired land and also awarded compensation for the fruit bearing trees as per rates mentioned in publication of 1985. The court also awarded 12 per cent increase as per Section 23 (1- A) of the Act and solatium at the rate of 30 per cent and interest at the rate of 9 per cent per annum on the enhanced amount for the first one year from the date of taking possession and at the rate of 15 percent per annum for the subsequent year till realization with proportionate costs. The State appeals were dismissed.

Judgment

N.K.Kapoor, J.

1. This judgment shall dispose of the following Regular First Appeals filed by the claimants :-

R. F. A. No. 1720 of 1989. R. F. A. No. 1721 of 1989. R. F. A. No. 1821 of 1989. R. F. A. No. 1822 of 1989. R F. A. No. 1692 of 1988. AND the following appeals filed by the Punjab State Electricity Board : - R. F. A. No. 2094 of 1989. R. F. A. No. 2095 of 1989. R. F. A No. 2096 of 1989. R. F. A. No. 2097 of 1989.

2. Land measuring 151 Kanals 10 Marias was acquired by the State of Punjab vide Notification under Section 4 of the Land Acquisition Act issued on 9th January, 1985 and published in the Government Gazette on 14th January, 1985 for the purpose of construction of a Power House No. 3, U. B. D. C. Stage-II-Project Malikpur (Pathankot) situate in village Narot Mehra Tehsil Pathankot. Notification under Section 6 too was issued. Though the proposal was for the acquisition of land measuring 151 Kanals 10 Marias, during the proceedings it was stated that only an area of 124 Kanals 16 Marias was being acquired. Land Aquisition Collector awarded compensation to different right holders vide award dated 15th January, 1986 with regard to land, itrees and structure. Right holders were also awarded 12 per cent increase per annum under Section 23 (1-A) of the Land Acquisition Act as well as statutory solatium at the rate of 30 per cent

3. Claimants feeling dissatisfied with the quantum of compensation presented applications under Section 18 of the Land Acquisition Act for reference to the court for enhancement of compensation. Court vide order dated 20th December, 1986 consolidated the cases of Puran Singh and Brijinder Singh appellants on the ground that land of these two persons adjoin each other as well as these raise the same question of law and fact.

4. It may be noticed that Collector awarded compensation in respect of land at the rate of Rs. 22,800/- per acre for chahi and nehri zamindari land and at the rate of Rs. 20,61l/- per acre for barani land. Claimants in their application under Section 18 of the Act contested the compensation amount awarded by the Collector terming this to be wholly inadequate. It was pleaded that the potential value of the land was very high as the land is centrally located in fact could be sold for extension of village abadi. There is 25-bed hospital in close proximity to the land acquired even the trend of extension of abadi of village Narot Mehra is towards the acquired land. It was further pleaded that this village has abadi of about 10,000 persons, 25-bed hospital, two dispensaries, three primary schools, one Government Middle School for Girls, one High School having vocational classes, Cold Storage, Grain Market, Petrol Pump, Post Office, Bank facilities and a Power House is in existence, Sarvshri Puran Singh and Brijinder Singh further pleaded that compensation awarded for the fruit bearing trees is also inadequate and not in accordance with the latest guidelines laid down by this Court.

5. Respondents put in appearance and controverted the various averments made by the claimants. It was maintained that Land Acquisition Collector gave due consideration to the situation of the land and the prelevant market price It was also stated that 25 bed hospital is not near the acquired land. Even averments made with regard to the existence of industrial activity was not accepted as correct. On these pleadings, the Additional District Judge framed the following issues :-

1. What was the market value of the land at the time of acquisition ? OPA.

2. Whether applicants are entitled to solatium at the rate of 30 per cent ?

3. Relief.

6. Additional District Judge, after examining the evidence led by claimants as well as the State found no merit in the plea of the claimants for enhancement of the compensation but all the same choose to award compensation at a uniform rate of Rs. 22,800/- per acre in respect of all kinds of land. As regards the compensation payable to the claimants in respect 6f

























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