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2024 Supreme(Online)(DEL) 31891
HIGH COURT OF DELHI
Sudhir Kumar Jain, J
Randhir Singh – Appellant
Versus
Union Of India – Respondent
LA.APP. 265/2024
For the Appellants/Petitioners: Rajesh Yadav, Ruchira Arora, R. S. Dalal
For the Respondents: Sanjay Kr. Pathak, K. K. Kiron Pathak, Sunil Kr. Jha, M. S. Akhtar, Mayank Arora, Mayank Madhu, Arti Bansal
In the absence of comparable sale instances, market value for land acquisition must be determined by assessing the land's potentiality and geographical advantages rather than relying solely on administrative indicative price policies, ensuring the award reflects the land's true market worth.
Headnote:(A) Land Acquisition Act, 1894 - Section 18, 23, 24, 54 - Determination of market value - Reference court relied on Indicative Price Policy - Appellant challenged the valuation as inadequate in view of surrounding development - Held, that in absence of direct exemplars or comparable sale instances, determination of market value should consider potentiality and surrounding developmental advantages, even if the land is recorded as agricultural land. (Paras 6.3, 10, 11, 12, 16)
(B) Compensation - Determination of - When land is surrounded by developed areas, it may be classified as semi-urban for valuation purposes, despite revenue records - Development potentiality must be accounted for by way of reasonable estimation or 'guesswork' when documentary evidence is absent or unreliable. (Paras 16, 17, 19)
(C) Appeal - Scope and ambit - Appellate court is empowered to grant just and fair compensation based on available evidence and potentiality, even if the method employed by the lower court was flawed, provided it is based on sound reasoning rather than pure conjecture. (Paras 10.1, 15, 19)
Facts of the case:
The appellants were owners of land acquired for public purpose under the Act. The Collector assessed compensation based on administrative indicative price policies. The appellants challenged this before the reference court, arguing that the land's proximity to developed residential and commercial sectors warranted a higher market value. The reference court enhanced the compensation marginally by applying an annual escalation to the indicative price but rejected the appellants' reliance on allotment rates and neighboring awards.
Findings of Court:
The court found that the reference court was not justified in strictly treating the land as agricultural given its proximity to developed infrastructure and urbanized areas. It held that while allotment rates by authorities are not direct comparables, the land's status as semi-urban necessitated a more realistic assessment than the base indicative price.
Issues: The main issues were the validity of using government indicative price policies for land with urban potentiality, the relevance of allotment instances as comparables, and the criteria for determining fair compensation in the absence of proximate sale deeds.
Ratio Decidendi: In the absence of direct sale instances, the determination of market value requires a holistic look at the land's potentiality and geographical advantages. The court concluded that an assessment based on fixed indicative prices fails to account for market reality and that a reasonable estimation, considering the land's location and surround development, is necessary to arrive at just compensation.
Result: Appeal partially allowed; compensation enhanced to Rs. 35,00,000/- per acre along with statutory benefits.
| Table of Content |
|---|
| 1. nature of acquisition, parties' contentions, and evidence produced before the reference court. (Para 1 , 2 , 3 , 4 , 5) |
| 2. reference court's evaluation of evidence, rejection of specific exemplars, and application of the indicative price policy for compensation. (Para 6) |
| 3. arguments in appeal regarding land potentiality vs. agricultural classification and appropriateness of compensation methodology. (Para 7 , 8 , 9) |
| 4. statutory requirements under sections 23 and 24 of the land acquisition act for determining fair market compensation. (Para 10) |
| 5. legal precedents on evaluating non-comparable sale deeds, allotment rates, and distant land exemplars. (Para 11 , 12 , 13 , 14 , 15) |
| 6. court's re-assessment of potentiality as semi-urban and determination of fair compensation through judicial estimation. (Para 16 , 17 , 18 , 19) |
J U D G M E N T
1. The present appeal is filed under section 54 of the Land Acquisition Act, 1894 (hereinafter referred to as “the Act”) to challenge the judgment and decree dated 21.11.2023 passed in LAC bearing no. 19/2016 titled as Randhir Singh & others V Union of India & another, (hereinafter referred to as “the impugned judgment”) by the court of Sh. Gagandeep Jindal, ADJ-1 + MACT, North West District, Rohini Courts Delhi (hereinafter referred to as “the reference court”).
2. The factual background of the case as reflected from impugned judgment is that Hon’ble Lt. Governor of Delhi vide notification bearing No. F.11(1)/L&B/LA/3831 dated 04.06.2004 issued under section 4 of the Act intended to acquire about 72 bigha 01 biswa of land with specification mentioned in the notification for public purpose namely “Rohini Residential Scheme” under the “Planned Development of Delhi”. Thereafter, vide Declaration/Notification no. F.11 (1)/L&B/LA/2626 dated 03.06.2005 issued under section 6 of the Act, 72 bigha 01 biswa land (as detailed in the statement under Section 19 of the Act) situated in the revenue estate of village Pooth Kalan, Delhi was acquired by the Government. Land Acquisition Collector(NW) ( hereinafter referred to as “LAC”) after completing the requisite formalities as provided under the Act announced the Award bearing no.04/2006-07 dated 20.10.2006 under section 11 of the Act in respect of 72 bigha 01 biswa out of the aforesaid acquired land and awarded a compensation at the uniform rate of Rs.15,70,000/- per acre (or Rs. 3,27,083.33/- per bigha) for the entire acquired land in addition to other statutory benefits and interests.
2.1 The appellants were co-owners/co-bhoomidhars of agricultural land comprised in Khasra no. 27//16 Min (4-10), 17(4-16), 18(4-16), 1//7/1 (0-05), 13//21 Min (3-00) and 22 min (4-00) total area admeasuring 21 bigha and 07 biswa situated in the revenue estate of Village Pooth Kalan, Delhi which was acquired vide Award no. 04/2006-07/DC(NW) dated 20.10.2006.
2.2 The petitioner in reference petition under section 18 of the Act challenged the Award on the grounds which are as under:-
i. The Award was announced by ignoring the objections of the appellants under Section 5A of the Act stating that the land in question isa built-up consisting of 40 rooms and that there is a boundary wallaround the land in question alongwith many trees on said land. The award is completely silent regarding the built-up structures.The land in question has not been properly valued for compensation amount to be paid to the appellantsby LAC. The compensation awarded by the LAC is highly inadequate as per the prevailing market price.
ii. LAC has failed to consider that the land of the appellantsis situated in the middle of fully developed residential colony namelyRohini Residential Scheme developed by DDA. The acquired land of the appellants falls in sector-23 of residential scheme and is situated near the 40 meters wide main road and also leads to NH-1. The Secior-23 is duly developed. The DDA has auctioned the land in the year 2002-03 @ Rs. 10,000/- per sq.yards approximately. LAC ha
