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2014 Supreme(P&H) 1094
PUNJAB & HARYANA HIGH COURT
SURYA KANT & AMOL RATTAN SINGH, JJ.
Ram Niwas & Others – Appellants
Vs.
Competent Authority, GAIL India Ltd. & Others – Respondents
CWP No. 14096 of 2013
Decided On : 03/03/2014
The laying of the gas pipeline did not amount to development of infrastructure in the area where the land was located, and therefore, there was no justification for imposing a deduction of 20% on the base price of the market value for the purpose of assessment of compensation under Section 10(4) of the Act.
Headnote:
Compensation - Land Acquisition - Petroleum and Minerals, Pipelines (Acquisition of Right of User in Land) Act, 1962 - Section 10
Fact of the Case:
The case involved the award of compensation to the petitioners under Section 10 of the Petroleum and Minerals, Pipelines (Acquisition of Right of User in Land) Act, 1962 for the acquisition of their land for laying natural gas pipelines.
Finding of the Court:
The court found that the deduction of 20% on the base price of the market value for the purpose of assessment of compensation under Section 10(4) of the Act was not justified, as the laying of the gas pipeline did not amount to development of infrastructure in the area where the land was located.
Issues: The main issue raised was whether the learned Additional District Judge-cum-Tribunal was justified in law in imposing a deduction of 20% on the base price of the market value for the purpose of assessment of compensation under Section 10(4) of the Act.
Ratio Decidendi: The court held that the gas-pipeline once laid, becomes a serious impediment against development of the acquired land, and there can be no occasion to incur any development expenditure. Therefore, the deduction of 20% on the base price of the market value was not justified.
Final Decision: The court allowed the writ petition in part, modified the award, and held the petitioners entitled to compensation without imposing the deduction of 20% on the base price of the market value. The enhanced amount of compensation was directed to be released to the petitioners and other landowners within two months from the date of the order.
SURYA KANT, J.
This order shall dispose of CWP Nos.14096, 14097, 14100, 14101, 14102, 16875, 16876, 16878, 16889, 16877 & 24315 of 2013 as common question of law and facts are involved in these cases. It may be mentioned at the outset that the controversy in these cases pertains to the award of compensation to the petitioners under Section 10 of the Petroleum and Minerals, Pipelines (Acquisition of Right of User in Land) Act, 1962 (in short, the 1962 Act) as their land has been acquired for the purpose of laying the pipelines for distribution of Natural Gas through Chhanysa-Jhajjar pipeline. For brevity, the facts are being extracted from CWP No.14096 of 2013.
2. The petitioners are residents of Village Raiseena, Tehsil Sohna, District Gurgaon. Their land has been admittedly acquired for laying the above-mentioned natural gas pipeline vide notification dated 01.02.2008 issued under Section 3(1) of the 1962 Act. The official notification under Section 6 was issued on 31.07.2008 followed by the awards dated 15.05.2009 and 10.08.2009. The Competent Authority appointed by the GAIL India Ltd. vide the abovestated Awards assessed the market value of the affected land at the rate of Rs.67,15,000/- and Rs.77,00,000/- per acre, respectively and consequently, granted compensation @ 10% of the abovestated value to the petitioners in terms of Section 10(4) of the 1962 Act. The dissatisfied petitioners sought reference under Section 10 of the 1962 Act which has been decided by the learned Additional District Judge, Gurgaon vide the impugned Award dated 18.02.2013.
3. Learned Additional District Judge-cum-Tribunal relied upon the sale deed dated 25.07.2007 (Ex.P5) and has determined the market value of the subject land to the tune of Rs.1,02,51,000/- per acre. The Tribunal thereafter applied deduction of 20% of the base price of market value of the acquired land and consequently reduced its market value @ Rs.82,00,000/- per acre. The petitioners have accordingly been held entitled to compensation @ 10% of the market value of Rs.82,00,000/- per acre in accordance with Section 10(4) of the 1962 Act. Still aggrieved, the petitioners seek enhancement of compensation through these proceedings.
4. It may be mentioned at this stage that in the connected cases, the land pertains to village Khaintawas, Tehsil Farruknagar, District Gurgaon; Village Patli, Tehsil Farruk-nagar, District Gurgaon; and village Dhunela, Tehsil Sohna, District Gurgaon. Since the evidence comprising sale deeds or awards etc. for the assessment of market value of the land of abovementioned villages were different than the sale deed dated 25.07.2007 (Ex.P5) of village Raiseena, the Tribunal has assessed the market value of the acquired land of abovestated villages (other than Raiseena) at different rates. He has, however, applied 20% deduction on the base price in all the cases. It is after such deduction that 10% of the market value of the respective land has been granted as compensation to all the petitioners.
5. The common question of law raised on behalf of all the petitioners thus is whether the learned Additional District Judge-cum-Tribunal was justified in law in imposing deduction of 20% on the base price of the market value for the purpose of assessment of compensation under Section 10(4) of the Act?
6. For better understanding of the issue, it would be useful to reproduce the following observations made by the learned Additional District Judge-cum-Tribunal in his award dated 18.02.2013 :
19. Thus, the sale price of the sale deed Ex.P5 dated 25.7.2007 can safely be taken as base price for determination of the market value of the development and balancing the price due to sale of small area by exemplar sale deed which are required to be made in order to reach at appropriate market value of the land. Therefore, in the present case the deductions towards development which include keeping aside the area/space for providing development infrastructure, developmental ex
