IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Anil Kshetarpal, J.
State Of Haryana & Anr. – Appellants
Versus
Inderpal & Ors. – Respondents
RFA-701 of 2022 (O&M)
Decided On : 20-09-2022
Land Acquisition Act - Assessment of Market Value - Section 4, Section 6 - 12.12.2008, 11.12.2009, 30.11.2011, 28.07.2019 - The court assessed the market value of the acquired land at the rate of Rs.55,71,010/- per acre, based on the assessment of the market value in a similar case. The court erred in relying on a judgment assessing the market value in a different village without evidence of comparability. The court also wrongly interpreted Section 25 of the 1894 Act and refused to rely on various sale deeds, contrary to the Supreme Court's decision in Lal Chand vs. Union of India (2009) 15 SCC 769.
Fact of the Case:
The landowners challenged a common award passed by the Reference Court (RC) on 29.07.2019, claiming that the amount offered by the Land Acquisition Collector (LAC) was significantly lower than the market value. The RC assessed the market value at Rs.55,71,010/- per acre, leading to the appeals.
Finding of the Court:
The court erred in relying on a judgment assessing the market value in a different village without evidence of comparability. The court also wrongly interpreted Section 25 of the 1894 Act and refused to rely on various sale deeds, contrary to the Supreme Court's decision in Lal Chand vs. Union of India (2009) 15 SCC 769. The landowners were held entitled to an increase in the per acre price, and the judgment passed by the RC was upheld.
Issues: The market value of the acquired land on the date of notification under Section 4 of the Land Acquisition Act, 1894, the limitation of the petitions, and relief.
Ratio Decidendi: The court erred in relying on a judgment assessing the market value in a different village without evidence of comparability. The court also wrongly interpreted Section 25 of the 1894 Act and refused to rely on various sale deeds, contrary to the Supreme Court's decision in Lal Chand vs. Union of India (2009) 15 SCC 769.
Final Decision: The appeals filed by the landowners and the State of Haryana were dismissed, and the judgment passed by the RC was upheld.
JUDGMENT
Anil Kshetarpal, J. (Oral) - 1. Background and Introduction:-
1.1 This judgment shall dispose of a batch of 35 appeals (details whereof is at the foot of the judgment) filed by the landowners as well as the State of Haryana, challenging a common award passed by the Reference Court (hereinafter referred to as 'the RC') on 29.07.2019. The notifications under Section 4 and 6 of the Land Acquisition Act, 1894 (hereinafter referred to as 1894 Act') and the awards passed by the Land Acquisition Collector (hereinafter referred to as 'LAC') as well as the RC are common.
1.2 Learned counsel representing the parties are ad idem that this batch of appeals can conveniently be disposed of by a common order.
1.3 The relevant particulars of the case are as under:-
| 12.12.2008 | Notification under Section 4 of the 1894 Act was issued proposing to acquire 33.01 acres of land located in the revenue estate of Village Dharuhera for the development and utilitization of the land as Industrial Sector 5, Dharuhera. |
| 11.12.2009 | Declaration under Section 6 of the 1894 Act was published |
| 30.11.2011 | Vide award no.44, the LAC offered to pay Rs.21,00,000/- per acre alongwith all the statutory benefits. |
| 28.07.2019 | The RC assessed the market value of the acquired land at the rate of Rs.55,71,010/- per acre. |
1.4 While filing the present appeals, 18 landowners claim that the amount offered by the LAC is significantly on the lower side. They claim that the acquired land is located on the National Highway no.10 and is surrounded by Multi National Companies (MNC's) like Honda, Sehgal Papers, Cool Beverage, Lumax, Kay Jay Auto Parts and various Real Estate developers namely M2K and Dwarkadish etc. have purchased the area in the vicinity. The acquired land is adjacent to the already developed area by the Haryana State Industrial Infrastructure and Development Corporation. The landowners claim that the market value of the acquired land was not less than Rs.2 crores per acre on the date of notification under Section 4 of the 1894 Act i.e on 12.12.2008. While denying the aforesaid assertions, the State has filed its reply. The RC culled out the following issues:-
'i) What was the market value of the acquired land on the date of notification No.LAC (G) NTLA-2008/1480 dated 12.12.2008 under Section 4 of Land Acquisition Act, 1894? OPP.
ii) Whether the petitions are barred by limitation? OPR
iii) Relief.
2. Oral and Documentary Evidence:-
2.1 In oral evidence, the landowners examined the following witnesses:-
| PW1 | Pardeep |
| PW2 | Inderpal |
| PW3 | Umed Singh, Parokar, Municipal Committee, Dharuhera |
| PW4 | Narender Kumar, Registration Clerk |
| PW5 | Udai Singh, Draftsman, DTP Office Rewari |
| PW6 | Om Parkash, Draftsman |
2.2 On the other hand, State has examined Sh.Moti Ram, Patwari from the office of LAC, Gurugram.
2.3. With the consent of the learned counsel representing the parties, a layout plan produced by the State of Haryana identifying the locations of the acquired land as well as the various sale deeds based upon Aks-sijra of the village is taken on record as Ex.HCI.
3. Analysis of the RC's award
3.1 The RC has refused to take into consideration the sale deeds Ex.R-5 to Ex.R-8 on the ground that these sale deeds reflect the price lower than the amount offered by the LAC. The court examined the various sale deeds produced by the landowners but refused to rely upon the same, on the ground that the vendees in the aforesaid sale deeds are between corporate entities. Thereafter, the court while relying upon the assessment of the market value at the rate of Rs.67,12,050/- in the Sultan Singh vs State of Haryana and others LAC case no.208/2016 decided on 21.11.2018 proceeded to assess the market value of the acquired land in this batch of appeals. In Sultan Singh's case, the notification under Section 4 of the 1894 Act was issued on
The market value of acquired land should be assessed based on the comparable sale exemplars of the contemporaneous period with respect to the parcels of land, either forming part of the acquired land....
The court applies the principle of assessing the market value of acquired land based on comparable sale instances and considers the location and development potential of the land.
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