SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Online)(HP) 2812

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Sushil Kukreja, J
Mamta Devi – Appellant
Versus
Land Acquisition Collector Railways – Respondent
RFA No. 117 of 2021|RFA No. 119 of 2021



Advocates:
For the Appellants/Petitioners: Ajay Sharma, Atharv Sharma
For the Respondents: Raj Kumar Negi, Nand Lal Thakur

Market value for acquired land is determined by potentiality and existing advantages, and awardees are mandatorily entitled to statutory solatium and interest under the Land Acquisition Act, 1894, on the enhanced compensation.

Headnote:The case involves an appeal against a Land Acquisition Reference Court award concerning compensation for land acquired for a railway line. Under the Land Acquisition Act, statutory benefits, including interest and solatium, were in dispute. The court analyzed evidence regarding market value and potentiality, upholding the compensation rate of Rs.1000/- per square meter while modifying the award to include all applicable statutory interest and allowances. The core issue centered on whether the acquired land was properly valued and if all statutory benefits were correctly applied. The court reasoned that market value determination should account for potentiality, existing advantages, and comparable sale transactions. It affirmed the reference court's reliance on previous precedents for market rate uniformity but concluded that the omission of specific statutory provisions at the reference stage necessitated a modification of the order. The impugned award is modified, and the appellant is granted specified interest and solatium on the compensation amount as per the provisions of the Act.

Table of Content
1. overview of land acquisition compensation appeals. (Para 1 , 2 , 3)
2. summary of rival contentions regarding compensation enhancement. (Para 6 , 7 , 8)
3. principles governing determination of market value and potentiality. (Para 9 , 10 , 11 , 12 , 13)
4. assessment of evidence and calculation of statutory benefits. (Para 14 , 15 , 16 , 17)
5. final modification of the lower court award. (Para 18)

Sushil Kukreja, Judge.

Since both these appeals are the offshoots of award, dated 01.08.2019, passed by learned Additional District Judge-II, Una, District Una, H.P. (hereinafter referred to as “the learned Reference Court”), the same are taken up together and being disposed of by a common judgment.

2. The appellant, who was petitioner/claimant (hereinafter referred to as “the petitioner/claimant”), preferred the instant appeals under Section 54 of the Land Acquisition Act (for short “the Act”) against award dated 01.08.2019, passed by learned Reference Court, in LAC Petitions No. 15 and 16 of 2007, whereby the above petitions filed by petitioner, i.e., Smt. Mamta Devi were allowed with costs and she was awarded compensation @ Rs.1000/- per square meter, irrespective of the location, category and classification of the acquired land alongwith interest @ 12% per annum on the enhanced amount of compensation under Section 23(1-A) of the Act from 25.02.2005 to 05.10.2006 alongwith solatium and interest.

3. The facts giving rise to the instant appeals are that the land of petitioner-Smt. Mamta Devi, i.e., (1) measuring 0-32-15 hectares, khasra No. 3074/445/1, 3676/446/1, 3078/450/1, 3080/451/1, 3082/453, 3084/454, 3086/455/2, measuring 0-17-89 hectares, khasra No. 3967/424/2, land measuring 0-03-12 hectares, khasra No. 419 to 421, 422 and 423 and (2) land measuring 0-32-15 hectares, khasra No. 3074/445/1, 3676/446/1, 3078/450/1, 3080/451/1, 3082/453, 3084/454, 3086/455/2 and land measuring 0-17-89 hectares, khasra No. 3967/424/2 and land measuring 0-03-12 hectares, bearing khasra No. 419 to 421, 422 and 423 situated in village Katohar Khurd, Tehsil Amb, District Una, H.P. was acquired for the purpose of construction of Nangal-Talwara Railway line under the Act vide Award No. 5, dated 05.10.2006, passed by Acquisition Officer (Railway), Una.

3(a). The petitioner assailed the aforesaid award before the learned Reference Court by filing petitions under Section 18 of the Act, wherein she averred that the Land Acquisition Collector published Notification Under Section 4 of the Act on 25.02.2005 qua acquisition of land in village Katohar Khurd, Tehsil Amb, Una, for construction of Railway Line from Nangal to Talwara (Una-Churru). Thereafter, notification under Section 6 of the Act, dated 23.06.2005, was issued. On 05.10.2006 the Land Acquisition Collector passed award under Section 11 of the Act and following compensation was awarded:

Sr. No. Class of Land Market rate of land touching State Highway per square meter in rupees Market rate of land touching link road per square meter in rupees Other land in rupees
1. Chahi abbal 1000/- 800/- 600/-
2. Barani abbal and banjer kadim 800/- 700/- 500/-
3. Banjer kadim, kharkana, kharetar 400/- 350/- 300/-
4. Giar mumkin 250/- 200/- 155/-
5. Gair mumkion abadi and sehan ahata (if classified chahi abban before construction) 1000/- 800/- 600/-
6. Gair mumkin abadi and sehan ahata 800/- 700/- 500/-

3(b). The petitioner/claimant averred that the Land Acquisition Collector did not assess the market value of the land correctly and she claimed that the aforesaid land was surrounded by abadies of village inhabitants on all sides and was also abutting to Una Dharamshala National Highway on the eastern side and a link road on the southern side. She further averred that the land was having a factory over it under the name and style of Himalayan Steel and General Products, which was engaged for extraction of resin and the building constructed for the factory was also acquired, for which

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top