IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARKESH MANUJA, J.
Rajbir And Others - Appellants
Versus
State of Haryana And Ors. - Respondents
RFA-91-2019
Decided On : 20-01-2026
JUDGMENT :
HARKESH MANUJA, J.
Vide this common order, a batch of 3 connected appeals shall stand disposed of, details whereof is provided in the footnote of the judgment. For convenience, the facts are drawn from RFA-91-2019.
By way of present appeal, challenge has been laid to the judgment dated 12.10.2018 passed by the learned Additional District Judge, Gurugram, 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.
2. Briefly stating, land measuring 0.53 acres, situated within the revenue estate of Village Tikampur, Hadbast No.54, District Gurgaon was acquired for development and utilization of land for (left out pocket) 150 meter wide periphery road linking Dwarka Township Delhi from Haryana Boundary to NH-8 near Kherki Daula vide notifications issued under Section 4 dated 05.01.2012 and Section 6 dated 10.07.2012 of the Act. The Land Acquisition Collector (for short ‘LAC’) passed Award No.49 dated 22.03.2013 assessing the market value at the rate of Rs.1,25,00,000/- per acre along with other statutory benefits.
3. The appellants-landowners, feeling dissatisfied with the award, sought reference under Section 18 of the Act pleading that the compensation awarded by the Land Acquisition Collector was unjust and inadequate as the acquired land was fit for residential as well as commercial purposes, falling within the municipal limits of Gurgaon City. It was further pleaded that the other co-villagers sold their undeveloped land adjoining the land of petitioners ranging from Rs.2 to 5 crores per acre.
4. Upon notice, the same was contested by the respondent(s)- State and further, it was contended that the market value assessed by the assessing authority was fair as the acquired land was agricultural land and cannot be used for any other purpose without development.
5. On the basis of pleadings of the parties, the following issues were framed by learned Reference Court on 20.04.2015:-
“1. What was the market value of the acquired land on the date of notification under Section 4 of the L.A. Act in all the petitions? OPP
2. Relief.”
6. After considering the evidence, the learned Additional District Judge, Gurugram, vide award dated 12.10.2018 enhanced the amount of compensation to Rs.1,54,34,953/- per acre.
7. Aggrieved of the aforesaid award dated 12.10.2018 passed by the learned Additional District Judge, Gurugram, the appellants-landowners filed the present appeal.
8. I have heard learned counsel for the parties and gone through the paper-book.
9. A perusal of record shows that learned Reference Court while making assessment of market value @ Rs.1,54,34,953/- per acre, relied upon a decision dated 05.09.2017 rendered by the Hon’ble Apex Court in “State of Haryana and Ors. Etc. Vs. Ram Chander and Anr.” Etc.”, Civil Appeal Nos.11814-11864 of 2017. Vide decision dated 05.09.2017, the determination of the market value for the acquired land forming part of revenue estate of village Tikampur was made with respect to notifications dated 25.01.2008 issued under Section 4 of the Land Acquisition Act, 1894 (hereinafter referred to as ‘the Act’) whereas, the present acquisition proceedings relate to the notification dated 05.01.2012 (issued under Section 4 of the Act). It may also be noticed here that the purpose of acquisition in both the acquisitions arising out of notification dated 25.01.2008 and 05.01.2012 has been the same i.e. for development and utilization of land for (left out pocket) 150 meter road wide periphery road linking Dwarka Township Delhi from Haryana Boundary to N.H.8 near Kherki Daula at Gurgaon.
10. In such circumstances taking into consideration the fact that the revenue estate of village Tikampur is located in NCR and forms part of District Gurgaon, and also, while considering the locational and potential advantage of land under acquisition, the learned Reference Court
The court established that compensation for land acquisition must reflect current market conditions and timely disbursement is crucial to ensure just compensation.
The court considered the similarity with a previous case to determine entitlement to compensation and escalation rate, modifying the Reference Court's decision
Acquisition of land – Quantum of compensation must be based on current market value of land.
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