IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARKESH MANUJA, J.
State Of Haryana And Anr. - Appellants
Versus
Des Ram And Ors. - Respondents
RFA-971-2000 (O&M)
Decided On : 03-03-2026
JUDGMENT :
HARKESH MANUJA, J.
Vide this common order, a batch of 15 Regular First Appeal(s) shall stand disposed of, details of which are mentioned in the footnote of the judgment. For convenience, the facts are being culled out from RFA-971-2000.
2. By way of present appeal, challenge has been laid to the judgment dated 08.12.1999 passed by the learned Additional District Judge, Gurgaon (for short ’Reference Court’) whereby the reference petition filed under Section 18 of the Land Acquisition Act, 1894 (hereinafter referred to as ‘the Act’) by the respondents-landowners, for seeking enhancement of compensation was partly allowed.
3. Briefly stating, certain land, situated within the revenue estate of Villages Kherli Lala and Bai Khera, Tehsil and District Gurgaon was acquired for the public purpose, namely, “for construction of Kherli Lala to Bai Khera road” vide notifications dated 09.09.1985 and 14.07.1986 issued under Sections 4 and 6 respectively of the Act. The Land Acquisition Collector (for short ‘LAC’) passed Award No.66 GBR dated 22.12.1986 for village Kherli Lala assessing the market value at the rate of Rs.35,040/- per acre for Chahi and abi land, Rs24,960/- per acre for Magda land, Rs. 18,080/- per acre for Bhood land, Rs.15,040/- per acre for banjar land along with other statutory benefits under the Act and vide award No.61 GBR dated 28.11.1986 for village Bai Khera, assessing the market value at the rate of Rs. 35,040/- for chahi land, Rs. 24,960/- per acre for magda land, Rs. 12,000/- per acre for gair mumkin land besides other statutory benefits under the Act.
4. The respondents-landowners, feeling dissatisfied with the award, sought reference under Section 18 of the Act pleading that the price of acquired land was ranging from Rs.1,50,000/- to Rs.2,00,000/- based on its nature. Moreover, for the acquired land pertaining to revenue estate of village Kherli Lala, respondents-landowners also sought compensation on account of severance. It was further pleaded that the acquired land was situated in close proximity to the village abadi and Ballabgarh industrial area, thus, possessing a higher potential value.
5. Upon notice, the same was contested by the appellant(s)- State while pleading that the compensation awarded by the LAC was just and fair as the same was assessed upon due consideration of the location and potential of the acquired land besides taking into account all other essential factors.
6. Upon framing of the issues and consideration of the evidence available on record, the learned Reference Court, vide award dated 08.12.1999 enhanced the amount of compensation to Rs.1,00,000/- per acre for all kinds of land.
7. Aggrieved of the aforesaid award dated 08.12.1999 passed by the learned Reference Court, the appellant(s)-State filed the present appeal(s).
8. Impugning the aforementioned award, learned counsel for the appellant(s)-State submits that learned Reference Court erred having relying upon the sale instances Ex. P1 (dated 10.06.1983) and Ex. P2 (dated 12.03.1984) produced by the respondents-landowners as the actual market value of the acquired land was even lesser than the value granted by the LAC. Learned counsel contends that the landowners were appropriately and sufficiently compensated by the LAC thus, no further enhancement was required to be granted in their favour by the learned Reference Court. Learned counsel thus submits that the award passed by the learned Reference Court was liable to be set aside and that of the LAC was to be restored.
9. On the other hand, learned counsel appearing on behalf of respondents-landowners submits that the sale instances Exs. R-1 and R- 2 produced by the appellant(s)-State were rightly discarded by the learned Reference Court as those pertained to the period post notification under Section 4 of the Act in case(s) in hand. He also submits that the learned Reference Court erred having applied deduction of 10% upon the sale price derived from the sale instances produced
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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