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2022 Supreme(All) 1856

IN THE HIGH COURT OF ALLAHABAD
Sunita Agarwal, Krishan Pahal, JJ.
Bulandshahr Khurja Development Authority Thru. Secry – Appellant
Versus
Smt. Amir Kuwar And Others – Respondents
First Appeal No. - 264 of 2012, First Appeal No. - 155 of 2001, First Appeal No. - 3 of 2016, First Appeal No. - 533, 534, 535, 536, 537, 582, 583, 584, 585, 611, 620 of 2017, First Appeal No. - 418 of 2019, First Appeal No. – 761 & 762 of 2021
Decided On : 11-03-2022

Advocates:
Advocate Appeared:
For the Appellant : A.K. Misra, A.K.Srivastava, Ashwani Kr.Misra, B. Dayal, Bhupeshwar Dayal, Kshitij Shailendra, Kuldeep Kumar, Mohan Yadav, Neeraj Agrawal, Ramesh Upadhyaya, Sumit Daga
For the Respondent: B.B. Paul, B.K. Solanki, Bhupeshwar Dayal, S.C., D.K. Mishra, Dushyant Singh, M.C.Singh, Mahesh Chand, N.Agarwal, Neeraj Agrawal, S.P. Singh, Vinod Sinha

Headnote:

Land Acquisition Act - Compensation Determination - Section 18 - 1894 - 54

Fact of the Case:

The appeals arose from a common judgment and order dated 1.7.2019 passed by the Court, where the market value determined by the Reference Court was upheld while dismissing the appeals with costs. The matter was remanded to the High Court by the Apex Court for fresh consideration along with 17 pending appeals to ensure uniformity in compensation orders. The Development Authority was aggrieved by the compensation determined by the Reference Court, while the claimants appealed against the rejection of their Land Acquisition Reference (LAR) upholding the award passed by the Special Land Acquisition Officer (SLAO) after remittal in the earlier round of litigation.

Finding of the Court:

The Court found that a vicious circle was created by the Reference Court and the First Appellate Court in subsequent references and appeals by placing reliance on previous decisions, the validity of which was questioned by higher Courts. The Court held that the determination of compensation at the rate of Rs. 400 per sq. yd. was not permissible and determined the compensation at the rate of Rs. 103.50 per sq. yd. for the acquired land, along with additional compensation and interest.

Issues: The main issue was the determination of compensation for land acquisition, with the Development Authority disputing the compensation rate of Rs. 400 per sq. yd. and the claimants seeking a uniform rate of Rs. 400 per sq. yd. for the entire land.

Ratio Decidendi: The Court held that the reliance on previous decisions for compensation determination was not permissible and determined the compensation at the rate of Rs. 103.50 per sq. yd. for the acquired land, considering the location and market value applicable on the date of notification under Section 4 of the Act, 1894.

Final Decision: All the appeals filed by the Development Authority and the claimants were disposed of, setting aside the judgment and order passed by the Reference Courts, with the determination of the market value of the lands subject matter of acquisition at the rate of Rs. 103.50 per sq. yd., along with additional compensation and interest.

JUDGMENT :

1. This bunch of First Appeals filed under Section 54 of the Land Acquisition Act, arising out of the orders of the Reference Court, was listed before us pursuant to the order dated 23rd March, 2021 passed by the Apex Court in Civil Appeal Nos. 1060 and 1061 of 2021 filed by Bulandshahr Khurja Development Authority (In short referred to as “BKDA”).

2. Brief background of the matter before entering into the merits of the case is that two first appeals namely First Appeal No. 264 of 2012 (Bulandshahr Khurja Development Authority Through Secretary vs. Smt. Amir Kuwar and others) and First Appeal No. 3 of 2016 (Bulandshahr Khurja Development Authority vs. Atul Chandra And Another) were decided by a common judgment and order dated 1.7.2019 passed by this Court. Both the said appeals had arisen from two similar but separate awards of the Reference Courts under Section 18 of the Land Acquisition Act, 1894 (In short referred to as “the Act, 1894”). The market value determined by the Reference Court was upheld by this Court while dismissing the appeals with costs.

3. On a challenge made before the Apex Court, the Special Leave Petition (Civil) No. 1034 of 2020 and Special Leave Petition (Civil) No. 1286 of 2020 were converted into the Civil Appeal No(s). 1060 of 2021 and 1061 of 2021, which were decided vide judgment and order dated 23rd March, 2021.

The observations and directions issued by the Apex Court in the judgment and order dated 23rd March, 2021 are relevant to be noted hereunder:-

    “Leave granted.

We have heard Mr. Basva Prabhu Patil and Mr. V.K. Shukla learned senior counsel, appearing respectively for the appellant and the caveator - respondents, at length.

Given the nature of our order dated 06.02.2017 in Civil Appeal Nos. 2124-2125 of 2012 and the fact that 17 appeals are still pending before the High Court, having arisen from orders of the Reference Court after remand, taking all aspects into consideration, we are of the consideration opinion that the High Court was not very correct in relying upon on its own order dated 07.04.2010 in view of our order dated 06.02.2017.

We, therefore, set aside the impugned order dated 01.07.2019 and remand the matter to the High Court with a request to hear this matter afresh along with the 17 appeals stated to be pending before it so that there is uniformity in the orders of compensation.

In the meantime, the compensation deposited pursuant to our order dated 31.01.2020 may be released to the respondents at the rate of Rs. 103.50 per sq. yd. without prejudice to their rights and contentions for enhancement of the same. The balance deposits may be forwarded to the High Court to abide by a fresh final decision that may be taken by it in the matter.

Since the issue of compensation has been hanging fire for over 30 years, we request the High Court to decide the matters expeditiously at its earliest convenience.

The appeals stand disposed.”

4. The Development Authority namely 'BKDA' is aggrieved by the orders passed by the Reference Court whereunder compensation at the rate of Rs. 400/-per sq. yd. had been determined while relying upon an exemplar sale deed dated 2.7.1988 wherein a small piece of land of about 100 sq. yds was sold at the rate of Rs. 420/-per sq. yd. Whereas the appeals filed by the claimants are against the orders of the Reference Court rejecting the Land Acquisition Reference (LAR) upholding the award passed by the Special Land Acquisition Officer (SLAO) after the matter was remitted in the earlier round of litigation by BKDA. All these appeals have been consolidated pursuant to the directions of the Apex Court dated 23rd March, 2021, noted above.

5. Sri Neeraj Agarwal learned Advocate has put in appearance on behalf of the respondents-claimants in First Appeal No. 155 of 2001 (Bulandshahar Khurja Development Authority vs. Ajay Kumar and Others) filed by the Development Authority and the claimant in First Appeal No. 620 of 2017 (Gauri Shankar Garg vs. State of U.P. and anoth

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