In land acquisition, compensation is determined using the highest bona fide sale exemplar from the pre-notification period. When using smaller plot sales, appropriate deductions for development charges must be applied to reach a fair market value for the larger acquired tract.

JUDGEMENT

SURYA KANT, J.

Delay condoned.

Leave granted.

2. These appeals are preferred by the expropriated landowners (hereinafter ‘Appellants’), impugning the judgement dated 23.08.2022 passed by the Punjab and Haryana High Court at Chandigarh (hereinafter, ‘High Court’), whereby their appeals seeking further enhancement in compensation for their acquired lands, have been dismissed. As a necessary corollary, the High Court has allowed the cross appeals filed by the Respondent State, challenging the enhancement in compensation made by the Reference Court. Consequently, the Awards passed by the Reference Court have been set aside and the compensation as was granted by the Land Acquisition Collector (hereinafter, ‘LAC’) has been restored.

A. FACTS

3. The instant dispute regarding the grant of just and fair compensation originated with the issuance of a notification under Section 4 of the Land Acquisition Act, 1894 (hereinafter, ‘1894 Act’) on 11.02.2011, for the acquisition of approximately 302.75 acres of land by the Respondent State. This land, including the Appellants’ lands, is situated in the revenue estate of Tauru village in Mewat District. The acquisition process was initiated for the development and utilisation of land for public purposes, specifically for carving out Residential and Utility Areas in Sectors 7, 8 and 11 in Mewat District under the Haryana Urban Development Authority Act, 1977. A notification under Section 6 of the 1894 Act was thereafter issued on 10.02.2012.

4. The LAC passed the award on 22.10.2013 in respect of the land admeasuring 302.75 acres and estimated the compensation at Rupees 45,00,000/- per acre, along with 30% solatium and an additional amount of 12% per annum for the acquired land. Further, compensation for the lands abutting the Mohammadpur—Sohna—Tauru bypass road were enhanced by 20% and 25%, respectively, over the already fixed rate. The LAC assessed the compensation primarily based on the rates fixed by the Divisional Level Rate Fixation Committee in the following manner: (a) 2057 Kanal at Rupees 45,00,000/- per acre; (b) 113 Kanals and 9 Marlas at Rupees 54,00,000/- per acre; and (c) 251 Kanals and 11 Marlas at Rupees 56,25,000/- per acre. In addition to this, the LAC also affixed compensation for building structures and trees wherever subsisting on the acquired lands.

5. Aggrieved by the award dated 22.10.2013, the Appellants filed Reference(s) under Section 18 of the 1894 Act before the Additional District Judge, Mewat (hereinafter, ‘Reference Court’). The Reference Court, vide separate awards, enhanced the market value of the acquired land to Rupees 92,62,500/- per acre, in addition to granting other statutory benefits. The Reference Court, in this instance, relied upon a sale exemplar, Ex. P76, to assess the market value of the acquired land as on the date of the issuance of Section 4 notification, and subsequently increased the compensation amount. Both the Appellants and the Respondent, being dissatisfied with the decision of the Reference Court, preferred appeals before the High Court.

6. In this vein, the High Court allowed the appeals preferred by the Respondent State while dismissing those filed by the Appellants. The High Court held that the Reference Court had incorrectly estimated the market value and enhanced the compensation as it ignored various sale instances o