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2023 Supreme(P&H) 2425

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ANIL KSHETARPAL, J.
Ishwar Singh & Ors. – Appellants
Versus
State of Haryana & Ors. – Respondents
RFA-3096 of 2015 (O&M)
Decided On : 06-01-2023

Advocates Appeared:
For the Applicants :Mr. Aditya Jain, Mr. Rajesh Arora, Mr. Amit Kumar Jain, Mr. M.L. Sharma and Mr. Sudhir Aggarwal, Advocates.
For the Respondents: Mr. J.S. Pannu, AAG, Haryana and Mr. Harsh Vardhan, AAG, Haryana.
For the HSIIDC :Mr. Pritam Singh Saini, Advocate.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4 and 6 - Dispute regarding market value of land for involuntary acquisition - The Land Acquisition Collector assessed the market value at Rs.12,50,000/- per acre, while the Reference Court assessed it at Rs.61,62,583/- per acre. The appeals evaluated the adequacy of the compensation offered by the LAC and the appropriateness of the market value determined by the RC. (Paras 1.4, 6.1, 6.2)

(B) Evidence assessment - Consideration of comparable sale deeds - The RC correctly concluded that previous sale deeds could not be relied upon as they did not adequately reflect true comparables for assessing the market value of the acquired land; it excluded instances post-dating the notification and those with insufficient comparability. (Paras 5.5, 5.10, 5.15)

(C) Market value determination principles - The assessment must focus on comparable parcels of land near the acquisition date and not include irrelevant or unsubstantiated instances. Courts should determine market value based on genuine instances reflective of market conditions at the time of acquisition. (Paras 5.1, 5.13, 5.14)

Facts of the case:
The land acquired is situated in villages Khoh and Kasan for developing an industrial township. The landowners contested the market value set by the LAC, arguing it did not reflect true market conditions, seeking a higher valuation based on parallel developments and prior sales.

Findings of Court:
The Court concluded that the claims of the landowners were unsubstantiated and upheld the LAC's original award.

Issues: The Court addressed the market value of acquired land and the adequacy of compensation provided by the LAC as compared to the RC's assessment.

Ratio Decidendi: The RC's judgment was deemed unsustainable due to reliance on improper comparables and failure to establish significant market value discrepancies. The LAC's award was upheld, affirming the market value determination principles as essential for accurate assessment.

Result: Appeals filed by HSIIDC allowed, landowners' appeals dismissed.

Table of Content
1. details of land acquisition and awarded amounts. (Para 1 , 2 , 3)
2. arguments regarding market value assessment. (Para 4)
3. established guidelines for market value assessment. (Para 5)
4. final judgment and outcome of appeals. (Para 6)

JUDGMENT

Mr. Anil Kshetarpal, J.

Introduction and background:

While praying for modification of the market value assessed in two different awards passed by the Reference Court (hereinafter referred to as 'the RC') on account of involuntary acquisition of the land, the landowners as well as Haryana State Industrial and Infrastructure Development Corporation (hereinafter referred to as 'the HSIIDC') have filed this batch of appeals (details whereof are at the foot of the judgement). The notification under section 4 and 6 of the LAND ACQUISITION ACT , 1894 (hereinafter referred to as 'the 1894 Act') are common. Though, separate awards were passed by the Land Acquisition Collector (hereinafter referred to as 'the LAC') as well as RC, however, identical market value has been assessed with respect to the acquired land in both the villages. The total acquired land is in a compact parcel of land which has been acquired for an identical purpose. The evidence led by the parties is also overlapping. The learned counsel representing the parties are ad idem that this batch of appeals can conveniently be disposed of by a common judgement.

1.2 The relevant particulars of this batch of appeals, in brief, are as under:

Sr. No.

Particulars

Relevant Date

1.

Preliminary notification under Section 4 of the 1894 Act

25.11.2005

2.

Area of acquired the land

356K-16M (in village Khoh) and 785K-11M (in village Kasan)

3.

Location of acquired the land

Village Khoh and Kasan

4.

Purpose of acquisition

Setting up of Chaudhary Devi Lal Industrial Model Township, to be planned and developed as integrated complex for industrial, residential, recreational and other public utilities.

5.

Declaration under Section 6 of the 1894 Act was issued.

24.11.2006

6.

Date and number of LAC award

Award No.7 and 8 dated 24.02.2007

7.

Amount assessed by the LAC

The LAC offered to pay the market value of the acquired land measuring 102 kanals and 16 marlas at the rate of Rs.12,50,000/- per acre.

8.

Date of RC's award

14.01.2015

9.

Amount assessed by the RC

While deciding 20 reference petitions, the RC assessed the market value of the acquired land in village Khoh at the rate of Rs.61,62,583/- per acre.

10.

Date of RC's award

10.02.2015

11.

Amount assessed by the RC

While deciding 30 reference petitions, the RC assessed the identical market value, of the acquired land in village Kasan @ Rs.61,62,583/- per acre.

1.3 It may be noted that from reading of both the awards passed by the LAC, it is evident that in village Khoh, the acquired land comprises in Rectangle No.22, 23, 24, 25 and 26, whereas, in village Kasan it comprises in Rectangle No.109, 110, 111, 113, 114, 115 and 116 and the passage comprises in Khasra No.302, 671, 672, 674, 676, 677 and 678.

Facts:

1.4 Dissatisfied with the amount offered by the LAC for involuntary acquisition of the land, on the applications filed by the landowners, the matters were referred to the RC. The landowners claimed that the acquired land is located near the Industrial Model Township, Manesar and the industrial units have already been developed nearby. The learned counsel representing the landowners contends that the LAC, while assessing the market value, has not taken into consideration the prevailing price of the land which was not less than Rs.4,00,00,000/- per acre.

1.5 On the other hand, the learned counsel representing the HSIIDC has submitted that the LAC has already assessed the market value of the acquired land on the higher side and in fact, the acquired land is agricultural in nature which could not be used for any

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