Back
2024 Supreme(Online)(SC) 12363
SUPREME COURT OF INDIA
NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY – Appellant
Versus
HARNAND SINGH (DECEASED) THR. LRS. – Respondent
C.A. No.-003674-003675 - 2023
The court established that compensation for land acquisition must reflect market value and can be determined using the principle of guesstimation when direct evidence is lacking.
Headnote:(A) Land Acquisition Act, 1894 - Sections 4(1), 6, 11, 18, and 28A - Compensation for land acquisition - High Court enhanced compensation from INR 222 and 233 per sq. yd. to INR 449 per sq. yd. - The court found that the market value of the land was INR 403 per sq. yd. based on the principle of guesstimation, considering the potentiality of the land and surrounding developments. (Paras 54, 22, 31)
(B) Compensation Determination - The court emphasized that compensation should reflect the market value and potentiality of the land, and that the principle of guesstimation can be applied when direct evidence is lacking. (Paras 20, 31)
Facts of the case:
The appeals were filed by NOIDA and landowners regarding compensation for land acquired for industrial development in Village Chhalera Bangar. The acquisition process began in 1991, and various compensation rates were awarded at different judicial stages. (Paras 2, 3, 4)
Findings of Court:
The court revised the compensation rate to INR 403 per sq. yd. for the acquired land, allowing the landowners' appeals in part while addressing the inconsistencies in previous compensation awards. (Paras 54, 44)
Issues: The main issues included whether compensation should be enhanced, the maintainability of miscellaneous applications, and the applicability of Section 28A of the 1894 Act. (Paras 19, 50)
Ratio Decidendi: The court ruled that the principle of guesstimation is applicable in determining compensation when direct evidence is insufficient, and emphasized the need for fair compensation reflecting market value. (Paras 31, 22)
Result: Appeals allowed in part; compensation revised to INR 403 per sq. yd.
SURYA KANT, J. Delay condoned. Leave granted.
2.These appeals and applications have been preferred by the New Okhla Industrial Development Authority (hereinafter, ‘NOIDA’) and landowners owning land in Village Chhalera Bangar, Tehsil Dadri, District Ghaziabad, contesting various identical impugned orders, including the judgment dated 08.02.2021 and in the review order dated 22.07.2021 passed in the lead case by the High Court of Judicature at Allahabad (hereinafter, ‘High Court’), enhancing the compensation granted to the landowners for an acquisition initiated under the Land Acquisition Act, 1894 (hereinafter, ‘1894 Act’). In the appeals preferred by NOIDA, the High Court has enhanced the rate of compensation from the range of INR 222 and 233 per sq. yd. as granted by the Additional District Judge, Ghaziabad (hereinafter, ‘Reference Court’), to INR 449 per sq. yd. Whereas, in the appeals and applications filed by the landowners, it was enhanced to INR 340 per sq. yd. A.FACTS
3.The present controversy has a chequered history. The acquisition process was initiated by State of U.P./NOIDA on 05.01.1991 through a notification issued under Section 4(1) of the 1894 Act, for the acquisition of approximately 492 acres of land in Village Chhalera Bangar, intended for planned Industrial Development. Afterwards, on 07.01.1992, the government issued a declaration under Section 6 read in conjunction with the ‘urgency clause’ contained in Section 17 of the 1894 Act. Possession of the land was taken on 30.03.1992, 07.08.1995 and 18.11.1995.
4.Subsequently, on 17.08.1996, the Land Acquisition Officer (hereinafter, ‘LAO’) issued an award under Section 11 of the 1894 Act, affixing compensation at INR 110 per sq. yd. The LAO relied on a sale deed dated 16.12.1988, whereby one Jyoti Prasad had sold the land to G.R. Pant at a rate of INR 125 per sq. yd. Applying a further 12% deduction, owing to the large area under acquisition, the rate of compensation was finally determined at INR 110 per sq. yd.
5.Following the award, several landowners made a reference before the Reference Court seeking enhancement of compensation under Section 18 of the 1894 Act. The record indicates two kinds of compensation rates granted by the Reference Court: first, INR 233 and second, INR 222 per square yard. In both these awards, the evidence suggested the market value of the land at the relevant time, at INR 390 per sq. yd., upon which a 40% deduction for development was applied. However, the final figure achieved after this calculation has been noted differently in both orders, where INR 222 per square yard seems to be the result of a calculation error.
6.Some landowners further preferred appeals before the High Court. One such initiative was filed by Jagdish Singh etc., who challenged the Reference Court’s award in First Appeal No. 774/2001, titled Jagdish Chandra and others v. New Okhla Industrial Development Authority. The High Court through its judgement dated 14.12.2007, reversed the deductions made by the Reference Court from the assessed market value and directed the State / NOIDA authorities to recalculate the compensation at INR 297.50 per sq. yd. without deducting development charges. However, in another similar group of appeals, the High Court, vide the later judgement dated 09.05.2008, refused to enhance the compensation.
7.The landowners’ review application(s) against the order dated 09.05.2008 were dismissed by the High Court observing that they could independently file appeals, if so aggrieved. However, in response to a later application seeking clarification, the High Court on 19.05.2010 clarified the operative part of its earlier judgment and enhanced the compensation to INR 340 per sq. yd. The other alike appeals filed by similarly situated landowners were also allowed in part and the compensation was enhanced to INR 340 per sq. yd.
8.Seeking further enhancement, a few landowners approached this Court, but their Special Leave Petitions (SLP
