IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARKESH MANUJA, J.
Jagdish & Ors. -Appellants
Versus
State Of Haryana & Anr. - Respondents
RFA-2258 of 1999, RFA-2259 of 1999
Decided On : 01-04-2026
JUDGMENT :
HARKESH MANUJA, J.
Vide this common order, aforementioned two Regular First Appeals shall stand disposed of as they involve common question of law and fact. For the sake of brevity, the facts are being culled out from RFA-2258-1999.
2. By way of present appeal(s), challenge has been laid to the judgment dated 08.04.1999 passed by the learned Additional District Judge, Ambala (for short ’the Reference Court’) whereby the reference petition filed under Section 18 of the Land Acquisition Act, 1894 (hereinafter referred to as ‘the Act’) by the appellants-landowners, seeking enhancement of compensation was partly allowed.
3. Briefly stating, certain land, situated within the revenue estate of Village Kanguwala, Hadbast No.146, Tehsil Kalka and District Ambala, was acquired for the public purpose, namely, “for construction of link road from Charnia Bargodam to Kalka Kherawali Road” vide notifications dated 25.02.1986 (published on 11.03.1986) issued under Section 4 and notification dated 24.09.1986 (published on 30.09.1986) issued under Section 6 of the Act. The Land Acquisition Collector (for short ‘ the LAC’) vide award dated 15.08.1987 assessed the market value of the acquired land @ Rs.30,648/- per acre for Banjar land and Rs.7,485/- per acre for gair mumkin sarak-rasta along with other statutory benefits under the Act.
4. The appellants-landowners, feeling dissatisfied with the award, sought reference under Section 18 of the Act pleading that the price of acquired land was not less than Rs.1,00,000/- per bigha as the same was situated in close vicinity of the municipal area of Kalka, fetching higher price than as assessed by the LAC.
5. Upon notice, the same was contested by the respondent(s)- State by way of written statement while pleading that market value of the acquired land was determined after giving due consideration to the prevailing market rate and thus, the compensation awarded by the LAC to the appellants-landowners was adequate.
6. Upon framing of issues and after considering the evidence, the learned Reference Court, vide award dated 08.04.1999 enhanced the amount of compensation to Rs.45,000/- per acre for all types of land besides granting all other statutory benefits under the Act.
7. Aggrieved of the aforesaid award dated 08.04.1999 passed by the learned Reference Court, the appellants-landowners filed the present appeal(s).
8. Impugning the aforementioned award, learned counsel for the appellants submits that the learned Reference Court erred having discarded the sale instances Ex. P-2 (dated 06.06.1985) and Ex.-P-3 (dated 03.08.1984) which pertained to the same revenue estate of village Kanguwala, Tehsil Kalka, District Ambala merely for the reason that the same pertained to small parcels of land. Learned counsel further contends that in view of the law laid down by Hon’ble Apex Court in “Hormal (deceased) through his LRs and Others vs. State of Haryana and Others” reported as 2024(4) RCR(Civil) 758, the sale transactions pertaining to small land parcels could be relied upon by applying suitable deductions. He thus prays that the award of the learned Reference Court needs to be modified and the market value in the case(s) in hand is required to be re-assessed.
9. Per contra, learned counsel appearing on behalf of respondent(s)-State submits that award passed by the learned Reference Court was based on proper appreciation of evidence and material available on record, warranted no interference and thus prays for dismissal of the appeal(s).
10. I have heard learned counsel for the parties and gone through the paper-book. I find substance in the submissions made on behalf of the appellants-landowners.
11. In the present case(s), the appellants-landowners produced on record the following two sale instances:-
| Exhibits | Dated | Area | Sale consideration | Price per acre | Village |
| P-2 | 06.06.1985 | 5 biswas | Rs.27,000/- | Rs.5,18,400/- | Kalka |
| P-3 | 03.08.1984 | 6 biswas | Rs.20,000/- | Rs.3,20,000/- | Kanguwala |
12. A perusal of the above chart shows that both t
Compensation for acquired land must be determined based on comparable market values and the advantages associated with location, without undue deductions for development costs.
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