IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH
G.S. Sandhawalia, J.
Punjab State Agricultural Marketing Board (mandi Board) - Appellant
Versus
Ludhar Mai And Others - Respondent
RFA No. 5978 of 2013
Decided On : 22-02-2019
Land Acquisition - Compensation - Section 54 of the Land Acquisition Act, 1894 - Summary of Acts and Sections: Section 54 of the Land Acquisition Act, 1894 - The judgment disposed of 160 appeals filed under Section 54 of the Land Acquisition Act, 1894 against the Award of the Reference Court, Bathinda dated 31.10.2011 by the landowners and by the Punjab State Agricultural Marketing Board (Mandi Board). The Reference Court held that the landowners are entitled to compensation at different rates based on the belting system. The land was acquired for the establishment of a New Grain Market at village Phul (Rampura) and compensation was awarded for different types of land - Nehri, Chahi, and Gair Mumkin. The claimants were also entitled to the benefits of section 23(1-A) and 23(2) and section 34 of the Land Acquisition Act, 1894 on the enhanced rate of compensation.
Fact of the Case:
The land was acquired for the establishment of a New Grain Market at village Phul (Rampura). The Reference Court held that the landowners are entitled to compensation at different rates based on the belting system. The claimants were also entitled to the benefits of section 23(1-A) and 23(2) and section 34 of the Land Acquisition Act, 1894 on the enhanced rate of compensation.
Finding of the Court:
The Court found that the land was not of agricultural nature and had been used as an unapproved Mandi by the Commission Agents. The Court held that the land was being used for the purpose of a Grain Market and, therefore, could not be treated as agricultural land. The Court also discussed the potential value of the land and the development activities in the surrounding area. The Court concluded that the market value for the land falling within the Grain Market area would be Rs. 300/- per square yard, while the land behind the Grain Market area would command a value of Rs. 180/- per square yard. The Court also dismissed the argument that the land fell within the municipal limits and should be uniformly valued at the same rate.
Issues: The issues discussed in the judgment included the determination of compensation rates for different types of land, the application of the belting system, the potential value of the land, and the uniform valuation of the land within the municipal limits.
Ratio Decidendi: The Court applied the principle of belting to determine different compensation rates for the land based on its usage and location. The Court also considered the potential value of the land and the development activities in the surrounding area to determine the market value. The Court rejected the argument for uniform valuation of the land within the municipal limits.
Final Decision: The Court allowed the appeals of the landowners and dismissed those of the Mandi Board. The Court assessed the market value at Rs. 300/- per square yard for the land within the Grain Market area and Rs. 180/- per square yard for the land behind the Grain Market area, along with all statutory benefits.
JUDGMENT
G.S. Sandhawalia. J. - The present judgment shall dispose of above mentioned 160 appeals filed under Section 54 of the Land Acquisition Act, 1894 (for short 'the Act') against the Award of the Reference Court, Bathinda dated 31.10.2011 both by the landowners and by the Punjab State Agricultural Marketing Board (Mandi Board). The Reference Court has held that the landowners are entitled for the compensation at the following rates, while resorting to the belting system:-
"(1) Rs.235/- per sq yard or Rs. 11,17,400/- per acre of 8 kanals of the land and land is represented by khasra numbers 388/124 & 25, 396/14, 5, 6, 7, 14, 15, 16, 17, 24 & 25 and khasra numbers 403//3 & 5.
(2) Rs.225/- per sq yard or Rs. 10,70,000/- per acre of 8 kanals of the land and the land comprised of khasra No.389//21 (3-9), 22 (2-18) and 395//1 (8-0), 2 (8-0), 9 (8-0), 10 (8-0), 11 (8-0), 12 (8-0), 19 (8-0), 20 (8-0).
(3) The remaining land Rs.100/- per sq yard or Rs.4,84,000/-per acre of 8 kanals.
The claimants are also entitled to the benefits of section 23 (1-A) and 23 (2) and section 34 of Land Acquisition Act, 1894 on the enhanced rate of compensation."
2. The land was acquired vide notification dated 08.02.1990 issued under Section 4 of the Act for 49 acres 6 kanals 16 marals for establishment of New Grain Market at village Phul (Rampura). The Land Acquisition Collector (for short 'the LAC) vide Award dated 29.01.1993 had awarded following compensation:-
| Type of land | Total Land | Rates per acre |
| Nehri | 89 kanals 4 marlas | Rs. 49,315/- |
| Chahi | 174 kanals 6 marlas | Rs. 38,874/- |
| Gair Mumkin | 135 kanals 6 marlas | Rs. 1,04,115/- |
3. Apart from that compensation was also awarded for the construction, tubewell, fruit giving trees and for other trees.
4. On an earlier occasion vide Award dated 25.02.2003 the landowners were held entitled for the compensation to the tune of Rs. 225/-per square yard (Rs. 10,70,000/- per acre) who were owners as per site plan Ex.A1, abutting the main road upto the depth of 60 karams by leaving 10karams of the same towards the passage etc. upto the depth of 25 yards of the land shown in ABCD. The balance land which was Nehri/Chahi in nature compensation @ Rs. 90,000/- per acre was awarded and for the Gair Mumkin price remained the same, apart from the statutory benefits etc.
5. Thereafter, 264 appeals as such were filed, which were disposed of on 17.02.2009, lead case of which was RFA No.317 of 2004 Smt. Shanti Devi Vs. The Collector and others' along with appeals filed by the Mandi Board, which had sought reduction of compensation. It was noticed that 72 persons were paid compensation for structures in addition to the value of the land which has not been disputed in the present set of appeals, but on account of variation of the value of the land, it was held that it would not be safe to rely upon the same for the purpose of determining the fair value. Accordingly, the formula which had been adopted by the Reference Court was not appreciated and the references were remitted for disposal in accordance with law while noticing that evidence had been closed by order, but no remedy has been taken against the said order. Resultantly, Mandi Board was permitted to cross-examine the witnesses produced by the landowners and lead evidence in defence. It was in such circumstances, the present award has been passed, which is subject matter of consideration.
6. It is pertinent to notice that the arguments were heard on 17.01.2019, 21.01.2019 and 22.01.2019, but no one appeared on behalf of the Mandi Board to assist this Court, though remand had also taken place at the first instance, on its asking.
7. The basis for enhancement of the market value as noticed above by the Reference Court is on account of taking into consideration three sale exemplars i.e. sale deeds Ex.A1, Ex.A80 and Ex.A81. It is
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