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2018 Supreme(P&H) 4411
IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH
G.S. Sandhawalia, J.
Swaran Kaur - Appellant
Versus
State Of Haryana - Respondent
RFA No.8761 of 2014 (O&M)
Decided On : 13-12-2018
M.L. Sharma, Shoaib Khan, Kabir Sarin, Advocates, for the Landowners; Sudeep Mahajan, Addl. AG Haryana and Ms. Vibha Tewari, AAG Haryana, for the Respondents; R.D. Bawa and Samuel Gill, Advocate, for the HUDA (RFA-74-2015)
The main legal point established in the judgment is the need to consider the potential value, location, and development of acquired land in determining market value under the Land Acquisition Act, 1894.
Headnote:
Land Acquisition Act - Land Acquisition Act, 1894 - Summary of Acts and Sections: Section 54 of the Land Acquisition Act, 1894 - The judgment discusses the assessment of market value for land acquired for public purpose under the Land Acquisition Act, 1894. It highlights the legal provisions related to the determination of market value, potential value of acquired land, and the relevance of brochures and auction sales in assessing market value.
Fact of the Case:
The case involves 46 Regular First Appeals filed by landowners and the State under Section 54 of the Land Acquisition Act, 1894. The appeals arise from the acquisition of land for residential and commercial development under the Haryana Urban Development Act, 1977. The landowners contested the market value awarded by the Reference Court, while the State challenged the enhancement of market value granted by the Reference Court.
Finding of the Court:
The Court found that the acquired land had immense potential for residential, commercial, and institutional purposes, and the location and development around the land justified an increase in market value. The Court held that the brochures and auction sales were not reliable indicators of market value and allowed the State's appeals, modifying the market value to Rs. 1250 per sq. yard. The Court also allowed the landowner's appeal by enhancing the market value.
Issues: The main issues revolved around the assessment of market value for the acquired land, the relevance of brochures and auction sales in determining market value, and the potential value of the acquired land.
Ratio Decidendi: The Court's decision was influenced by the potential value of the acquired land, the legal principles related to the determination of market value, and the relevance of brochures and auction sales in assessing market value. The Court emphasized the need to consider the location, development, and potentiality of the land in determining market value.
Final Decision: The Court allowed the State's appeals, modifying the market value to Rs. 1250 per sq. yard and dismissed the cross-appeals of the landowners. The Court also allowed the landowner's appeal by enhancing the market value. The State was directed to comply with the directions laid down by the Apex Court in HSIIDC vs. Pran Sukh, (2010) 11 SCC 175.
JUDGMENT
G.S. Sandhawalia, J. - This order shall dispose of 46 Regular First Appeals filed by the landowners and the State and for the sake of brevity, the RFA No.8761 of 2014 is being treated as the lead case. The details of the RFAs are tabulated hereunder:-
| RFA filed by | RFA No. |
| Landowners | --1074 of 2007, 7826 to 7830, 7863 to 7875, 8761, 8945 to 8947 of 2014, 74 of 2015 |
| State | --567, 568, 570, 571 to 573, 575 to 578, 580 to 588, 590 to 592 of 2015 |
2. Present set of appeals filed under section 54 of the Land Acquisition Act, 1894 arise out of the notification dated 28.07.1999 whereby land measuring 24.71 acres was acquired in the revenue estate of village Maheshpur, Hadbast No.368 for public purpose of development and utilization of land as residential and commercial for Sector 21, Panchkula under the Haryana Urban Development Act, 1977.
3. In the first award of the Reference Court, Panchkula dated 02.11.2006 only Rs. 518 per sq.yards (Rs. 25,07,120 lakhs per acre) has been awarded as market value. To come to the said assessment, the Reference Court had placed reliance upon the award of the notification dated 26.04.1995 whereby vide award (Ex.R1), a sum of Rs. 350/- had been awarded per sq.yards for the said village. Resultantly, the said award being the best piece of evidence in order to determine the market value was kept in mind while granting 12% increase for 4 years to work out market value @ Rs. 518/- per sq.yards. Resultantly, the landowners are in appeal.
4. However, vide award dated 05.05.2014 for the same notification, the Reference Court, Panchkula has granted Rs. 1440/- per sq.yards primarily on the strength of brochures issued by HUDA in the adjoining area and resultantly the State has also challenged the said enhancement by filing appeals. The Reference Court in the said set of cases placed reliance upon Ex.P15 which was a brochure issued by HUDA for allotment of land in the year 1997 to distinguish the award which was of the year 1995 by holding that the acquired land is situated adjoining to the developed area and further that the land was acquired for HUDA. Therefore, the brochure issued by the HUDA was taken into consideration as a benchmark to assess the market rate and keeping in view the fact that the same was issued on 12.11.1997 whereas the notification was issued on 28.07.1999 and the gap was of 20 months. 20% enhancement (Rs. 800/-) was put on the same to assess the market value @ Rs. 4800/- per sq.yards. Thereafter 50% development cut was put on account of the common purposes like parks, roads, green belts, community centres, schools, temples etc. to bring down the market value to Rs. 2400/- and thereafter another 40% (Rs. 960/-) cut was put towards development charges and resultantly, the market value was assessed @ Rs. 1440/- which is seriously objected to by the State.
5. Mr. ML Sharma and Mr. Shoaib Khan, Advocates have justified the fixing of market price on the ground that the area was situated right behind the developed portion and therefore, the market value as such was properly assessed as it is surrounded by residential and commercial area. Reliance is placed upon the evidence both in the form of oral and development plans for the said purpose. It is further submitted that even otherwise now the Supreme Court in Ashok Kumar & Ors. vs. State of Haryana & Ors. (2015) 15 SCC 200 for the notification dated 26.04.1995 has further enhanced the amount from Rs. 350/- to Rs. 715/- and even if 12% enhancement is granted on the same, the market value would still come to Rs. 1125/- (Rs. 54,44,000). In the alternative, it is argued that 15% cumulative increase be granted in the facts and circumstances of the case and if that is done Rs. 1250/- per sq.yards would be market value (Rs. 60,50,000/-).
6. In RFA No.8761 of 2014, the appeal pertaining to the reference court order d
