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2026 Supreme(P&H) 124

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARKESH MANUJA, J.
State of Punjab – Appellant
Versus 
Prem Kaur (Since Deceased) through LRs. and Another – Respondents
RFA No. 1150 of 1996
Decided On : 10-03-2026

Advocates Appeared:
For the Appellant : Gunjan Mehta
For the Respondent: Pritam Singh Saini

JUDGMENT :

HARKESH MANUJA, J.

1. The appellant, by instituting the present appeal preferred under Section 54 of the Land Acquisition Act, 1894 (for short “1894 Act”), seek setting aside of award dated 28.10.1994 passed by the learned Additional District Judge, Patiala (hereinafter to be referred as “Reference Court”) while restoring the Award passed by the Land Acquisition Collector (for short “LAC”)

2. Briefly, the facts are that in pursuance of Punjab Govt. Notification under Sections 4 & 6 of the 1894 Act issued on 12.03.1987 and 13.03.1987 respectively, certain land of the respondents-landowners, situated within the revenue estate of Village Mehtabgarh, Tehsil Fatehgarh Sahib, was acquired for construction of Bhua Kheri Distributory. The LAC vide award dated 28.01.1988 assessed the market value of the acquired land at the rate of Rs. 35,000/- per acre. The LAC, vide supplementary Award No. 313/P-SYL, dated 24.10.1988 awarded 15% severance compensation for the severed land subject to a maximum of 5 acres beyond the distributory.

3. Aggrieved of the assessment made by the LAC, the respondents-landowners preferred a reference petition under Section 18 of the 1894 Act, which came to be disposed off vide decision dated 28.10.1994, whereby the market value of the land was determined at the rate of Rs. 1,25,000/- per acre for chahi land; Rs. 75,000/- per acre for Barani/Dakar land and Rs. 55,000/- per acre for Banjar Kadim/Gair Mumkin land; besides it, the compensation was enhanced at the rate of 25% from 15% of the value of the land upto first five acres on account of severance.

4. Being dissatisfied with the determination made by the learned Reference Court, the appellants-State of Punjab preferred the present appeal.

5. I have heard learned counsel for the parties and gone through the paper-book/relevant record.

6. A perusal of the record shows that the learned Reference Court considered the acquired land of the respondents as Chahi in nature in view of the jamabadi for the year 1986-87 placed on record by them. Further, the learned Reference Court, based on an earlier award (Ex. P-5) passed in the year 1992, determined the market value of the acquired land in the case at hand at the rate of Rs. 1,25,000/- per acre for chahi land; Rs. 75,000/- per acre for Barani/Dakar land and Rs.55,000/- per acre for Banjar Kadim/Gair Mumkin land. Thus, in the considered opinion of this Court, the re-assessment made by the learned Reference Court cannot be said to be unfair or unjustified in the given facts and circumstances.

7. Further, the grievance raised on behalf of the appellant-State of Punjab, at this stage, is about the enhancement of severance damages awarded in favour of the respondents-landowners from 15% to 25% of the value of the land.

8. A perusal of the judgment passed by the learned Reference Court shows that in the present case, while enhancing damages against severance from 15% to 25%, the learned Reference Court took into account the fact that on account of construction of Bhua Kheri Distributory, the landholdings of the owners were bifurcated and further, it became uneconomical and difficult to irrigate the land on other side as no passage was left for the owners to go across the canal to cultivate the remaining piece of land, which stood severed from the original landholdings. As such, the learned Reference Court appropriately assessed the severance charges.

9. Moreover, in the humble opinion of this Court as well, the land been acquired for the public purpose, namely, “for construction of Bhua Kheri Distributory” definitely and conclusively dissected the land-holdings into two parts, in such circumstances, the respondents-landowners suffered loss towards cultivation of land besides inconvenience towards connectivity of the parcels left on either side of the distributory. Besides, the severance also causes reduction in value of remaining land due to alteration in access, usability, irregularity of shape and loss of agricultural v

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