2026 Supreme(Online)(P&H) 82474
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Harkesh Manuja, J
Rajender Prasad – Appellant
Versus
State Of Harayana – Respondent
RFA-1872-2016
For the Appellants/Petitioners: Shailendra Jain, Rahul, Indu Bala
For the Respondents: Abhinash Jain, Pritam Singh Saini, Surbhi Rana
Previous judicial awards for land acquisition are relevant evidence to determine market value in subsequent cases if the lands are similar in potential, nature, and location, despite not being strictly binding as precedents.
Headnote:(A) Land Acquisition Act, 1894 - Section 4 and 18 - Determination of market value - Previous awards/judgments - Use of previous judgment as evidence - The court held that previous awards are relevant pieces of evidence and not binding precedents per se, but can be relied upon if the land is similar in nature, potential, and location - The appellant's land was similar in location and potential to land acquired three months earlier, for which a final market value was set. (Paras 13, 16.1)
Facts of the case:
The acquisition of land in Village Budhera, District Gurugram, was initiated via a Section 4 notification dated 19.08.2008 for a sewerage treatment plant. The Land Acquisition Collector assessed market value at Rs. 41,50,000/- per acre. The Reference Court enhanced this to Rs. 46,87,057/- per acre, against which the landowners filed these appeals seeking further enhancement based on a prior acquisition in the same village (notification dated 19.05.2008) which was valued at Rs. 2,80,00,000/- per acre.
Findings of Court:
The Court found that there was no significant difference in location or potential between the current acquisition and the previous acquisition (Moti Sagar case). Given the short 3-month temporal gap, the Court rejected the respondent's argument to ignore the previous award and instead relied upon the rate determined by this Court in the earlier matter as the best evidence of market value.
Issues: Whether previous judicial awards/judgments can be relied upon to determine market value in subsequent acquisitions under the Land Acquisition Act, and whether the appellants are entitled to the same market value as the prior acquisition.
Ratio Decidendi: While previous awards are not binding as precedents, they are relevant evidence. Where land similarity is proven and evidence of market value is lacking or unreliable, prior court-determined values for proximate and similar lands are the most reliable indicators of just compensation.
Result: Appeals partly allowed, market value enhanced to Rs. 2,80,00,000/- per acre with statutory benefits.
| Table of Content |
|---|
| 1. summary of facts, acquisition notification, and lower court proceedings. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8) |
| 2. contentions regarding the relevance of prior awards versus sale deeds. (Para 9 , 10) |
| 3. court evaluates the evidentiary value of past awards and rejects unreliable sale deeds. (Para 11 , 12 , 13 , 14 , 15 , 16) |
| 4. final determination of market value and granting of statutory benefits. (Para 17 , 18 , 19 , 20 , 21) |
HARKESH MANUJA, J. (ORAL)
Vide this common order, a batch of 19 Regular First Appeal(s) shall stand disposed of, details of which are mentioned in the footnote of the judgment. For convenience, the facts are culled out from RFA-1872-2016.
By way of present appeal(s), challenge has been laid to the judgment dated 06.01.2016 passed by the learned Additional District Judge, Gurgaon (hereinafter referred to as ‘Reference Court’) whereby the reference petition filed under Section 18 of the Land Acquisition Act, 1894 (for brevity ‘the Act’) by the appellants-landowners, seeking enhancement of compensation was partly allowed.
2. Briefly stating, certain land, located within the revenue estate of Village Budhera, Tehsil and District Gurgaon was acquired for the public purpose, namely, “for setting up of a sewerage treatment plant” vide notification dated 19.08.2008 and 19.08.2009 issued under Sections 4 and 6 respectively of the Act. The Land Acquisition Collector (for short ‘the LAC’) passed Award No.9 dated 26.07.2011 assessing the market value at the rate of Rs.41,50,000/- 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 price of acquired land was not less than Rs.2,00,00,000/- per acre as the same was situated in the vicinity of posh colonies and sectors carved out by HUDA.
4. Upon notice, the same was contested by the respondents-HSIIDC by filing a written statement which was adopted by respondents-State as well. In the written statement, it was pleaded that the appellants did not file any claim under Section 9 of the Act opposing the amount of compensation granted by the LAC. It was further pleaded that the acquired land was an ordinary agricultural land and the compensation awarded by the LAC was fair and adequate.
5. On the basis of pleadings of the parties, the following issues were framed by the learned Reference Court:-
“1. What was the market value of the acquired land at the time on the date of notification under Section 4 of Land Acquisition Act? OPP
2. Relief.”
6. The parties led their respective evidence and produced following sale deeds:
Sale deeds produced by appellants-landowners:
| Exhibit | Date of Sale Deed | Sale Deed no. | Area of Land | Village | Total Amount | Rate Per Acre |
|---|---|---|---|---|---|---|
| P-1 | 13.08.2008 | 11983 | 119 sq. yards | Budhera | Rs. 18,00,792/- | Rs. 57,64,440/- |
| P-11 | 01.03.2013 | 27838 | 14K-0M-4S | Budhera | Rs. 2,32,26,133/- | Rs. 1,32,72,076/- |
| P-12 | 06.03.2013 | 28285 | 15K-15M | Budhera | Rs. 2,75,54,800/- | Rs. 1,39,96,088/- |
| P-13 | 24.05.2013 | 5103 | 16K-0M | Budhera | Rs. 2,80,00,000/- | Rs. 1,40,00,000/- |
| P-14 | 28.03.2007 | 27084 | 35K-10M | Dhanwapur | Rs. 11,09,37,500/- | Rs. 2,50,00,000/- |
| P-15 | 23.08.2007 | 11083 | 9K-16M | Dhanwapur | Rs. 3,67,50,000/- | Rs. 3,00,00,000/- |
| P-16 | 14.02.2008 | 26336 | 17K-15M | Dhanwapur | Rs. 8,43,12,500/- | Rs. 3,80,00,000/- |
| P-17 | 07.04.2011 | 442 | 13K-13M | Dhanwapur | Rs. 9,21,37,500/- | Rs. 5,40,00,000/- |
| P-II | 29.01.2008 | 24748 | 7K-10M | Dhankot | Rs. 2,62,50,000/- | Rs. 2,80,00,000/- |
| A-2 | 21.11.2007 | 17135 | 9K-2M | Dhankot | Rs. 3,41,25,000/- | Rs. 3,00,00,000/- |
| A-3 | 21.11.2007 | 17137 | 20K-18M | Dhankot | Rs. 7,83,75,000/- | Rs. 3,00,00,000/- |
| A-4 | 24.01.2008 | 24377 | 30K-0M | Dhankot | Rs. 10,50,00,000/- | Rs. 2,80,00,000/- |
| A-5 | 24.01.2008 | 24379 | 39K-18.5M | Dhankot | Rs. 13,97,37,500/- | Rs. 2,80,00,000/- |
| A-6 | 24.01.2008 | 24380 | 9K-18.5M | Dhankot | Rs. 3,47,37,500/- | Rs. 2,80,00,000/- |
Sale deeds produced by respondents:-
| Sr. no. | Exhibit | Date of Sale Deed | Sale Deed no. | Area of Land | Village | Tota |
|---|---|---|---|---|---|---|