2008 Supreme(P&H) 1034
2009 (2) RCR(Civ) 548
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Pritam Pal, J.
Gurbhajan Singh -Appellant
Versus
The Land Acquisition Collector and others - Respondents
R.F.A. No. 1606 of 1995 (O&M)
Decided on: May 14, 2008
Important Points
Subject
Land Acquisition - Compensation Determination
Act Referred
Headnote
Land Acquisition - Compensation - Land Acquisition Act, 1894 - Section 4, Section 6, Section 18, Section 23, Section 25 - The judgment discusses the acquisition of land for a Leather Goods Complex, the determination of compensation, and the award of severance charges. The court considered sale transactions, the location and potential use of the acquired land, and the impact of a drain on the land's value. The court held that the market value of the land should be assessed at a higher rate, considering its potential for commercial, residential, and industrial development. The court also upheld the award of severance charges to certain landowners.
Fact of the Case:
The Punjab Government acquired land for a Leather Goods Complex, and the landowners filed Reference Applications for enhancement of compensation. The Reference Court assessed the market value of the acquired land at a flat rate of Rs.1,15,000 per acre, leading to appeals by both the landowners and the Punjab Small Industries and Export Corporation.
Finding of the Court:
The court found that the acquired land had potential for commercial, residential, and industrial development, and should be assessed at a higher rate. It also upheld the award of severance charges to certain landowners, considering the impact of the acquisition on their remaining land.
Issues: The main issues were the determination of compensation for the acquired land and the award of severance charges.
Ratio Decidendi: The court held that the market value of the acquired land should be assessed at a higher rate, considering its potential for development. It also upheld the award of severance charges to certain landowners, based on the impact of the acquisition on their remaining land.
Final Decision: The court allowed the appeals by the landowners, enhancing the compensation to Rs.2,04,600 per acre and upholding the award of severance charges. The appeals by the Punjab Small Industries and Export Corporation were dismissed.
Advocate Appeared:
For the Appellant Land-Owners:Shri M.L.Sarin, Senior Advocate, with Shri Hemant Sarin, Advocate, Shri Kanwaljit Singh, Sr. Advocate, with Shri I.S. Gill, Advocate, Shri N.C.Sahni, Advocate, Shri S.C. Nagpal, Advocate and Shri Amardeep Singh Gill, Advocate
For the Respondent: Shri Manohar Lall, Addl. A.G. Punjab.
For the Punjab Small Industries & Export Corporation:Shri Amit Rawal, Advocate and Shri A.R. Takkar, Advocate.
For Leather Complex Entrepreneur:Shri Harsh Aggarwal, Advocate.
PRITAM PAL, J.
1. This judgment of mine would dispose of a bunch of 62 Regular First Appeals, bearing Nos. 1802 of 1996, 1459, 1799, 1466, 1169 to 1171, 1602 to 1605, 1607, 1608, 1641 to 1644, 1698, 1742, 1743, 1798, 1800 to 1803, 2084, 2130 2305, 2397, 2407, 1167, 1168 of 1995, 582 of 1996 and 2014 of 2003 filed by the claimants/land-owners for enhancement of compensation and R.F.A. Nos. 1669 to 1675; 2180 to 2199 of 1995 and 4071 of 2002, filed by Punjab Small Industries and Export Corporation, against the award dated 27.1.1995, passed by the Reference Court. Since all these appeals arise out of one and the same judgment, pertaining to the same notification and common questions of law and facts are involved therein, so they are being taken up together for decision.
2. In nutshell, facts culminating to the commencement of these sixty two appeals may be recapitulated thus :
In pursuance to the Punjab Government notification dated 27.3.1985 issued under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as “the Act”), the total land measuring 222.89 acres situated in five villages, namely, Basti Danish Mandan, Kutlupur, Basti Bawa Khel, Wariana and Basti Pir Dad, (District Jalandhar) was acquired for the purpose of setting-up a Leather Goods Complex at Basti Bawa Khel, Jalandhar at public expenses for public purposes. The declaration under Section 6 of the Act was published in the Punjab Government gazette on 9/10th August, 1985. Ultimately, the Land Acquisition Collector (for short, “the Collector”) had passed five different awards on the same date i.e. 14.8.1987 in respect of compensation of the acquired land of the land-owners/appellants (hereinafter referred to as “the land-owners”). Thereafter, a Supplementary Award No. 4-A was also passed by the Collector regarding the compensation in respect of structure, hand-pump etc. situated in village Basti Pir Dad in respect of Kulbir Singh, one of the land-owners. As per the awards passed by the Collector, compensation for Chahi and Ghair Mumkin land abutting pucca road was assessed at Rs. 60,000/-per acre whereas, the compensation of land which was 40 karams away from the pucca road, was assessed at Rs. 48,033/-per acre. Likewise, the Collector awarded a compensation of barani land abutting the pucca road @ Rs. 30,000/-per acre , whereas, for barani land which was more than 40 karams away from the pucca road, it was assessed at the rate of Rs.23,800/-. It is also to add here that the above rates of the land were applied by the Collector to the entire acquired land situated in all the above mentioned five villages of District Jalandhar. Besides that, 10% severance charges of the compensation amount was also awarded to four appellants, namely, Gurbhajan Singh, Gursharan Singh, Harjit Singh and Jasbir Singh.
3. All the appellants feeling aggrieved with the rate of compensation awarded by the Collector, filed their respective Reference Applications under Section 18 of the Act for enhancement of compensation. Ultimately, the matter went before the Reference Court, where, learned Additional District Judge, Jalandhar, vide his judgment dated 27.1.1995, held the method of awarding compensation by the Collector in respect of the acquired land as improper and unjustifiable and while relying upon Nand Ram and others v. State of Haryana 1989 All India Land Acquisition and Compensation Cases 1(SC); Ratti Ram and others v. State of Haryana and another 1987 All India Land Acquisition and Compensation Cases 199, Inder Singh v. State of Haryana 1987 All India Land Acquisition and Compensation Cases 321 and Zora Singh Vs. Union of India and another All India Land Acquisition and Compensation Cases 541, came to the conclusion that the compensation/market value of the land acquired by the same notification forming one tract was to be assessed at the same rate. Further, it was also observed by the learned Reference Court that when lands were similarly situated, acquired unde