Compensation for land acquisition must reflect fair market value, considering location and agricultural potential, with statutory benefits applied correctly under the Land Acquisition Act.

G.S. SANDHAWALIA, J.

(1) The present set of 195 appeals along with the 5 cross-objections filed by the landowners and the State are directed against various awards details of which are given below of the Reference Court, Ferozepur pertaining to notifications dated 14.11.2000 and 24.11.2000 for 11 villages, namely, Sabuana, Odian/Qddian, Karni Khera, Awa, Kotha, Alamshah, Salim Shah, Mauzam, Dona Sikandari, Muhar Kheewa and Muhar Jamsher. The public purpose of acquisition was for the purpose of construction of Aspal Extension Drain/Ditch Channel from RD No.0 to 62500 falling in Satluj River.

(2) The villages are in close vicinity to Fazilka town on both sides and the drain goes towards Satluj River creek towards Indo-Pak border and therefore the villages keep on getting further away from the Fazilka town as per the sequence given, with village Awa being closest to MC limits and in the centre. The area acquired of the said villages is as under:-

(3) The Collector vide award dated 06.08.2001 had fixed the market value @ ` 2,25,000/- per acre for chahi nehri land, ` 1,60,000/- for barani and for gair mumkin ` 3 lakhs per acre. Apart from the market value the landowners were also held entitled for compensation of tubewell, trees, structures etc. and for the orchard Surinder Kumar and his son Vikramaditya were held entitled for `1,01,139.50 each for fruit trees standing in their land.

(4) Vide the first award dated 22.09.2006 for villages Sabuana & Odian while disposing of 17 reference petitions, the market value as such was not varied however on account of severance 10% enhancement was granted. Apart from that the payment of `10,000/- for the 4 tubewells was granted. The Reference Court examined the site plan (Ex.P41) to notice that the acquired land was on the southern side of the abadi of Village Odian and extended considerably away. As per the landowners’ evidence led, the acquired land was at the distance of 2 KM from the Municipal limits of Fazilka. The abadi area of village Rampura which was also depicted was discussed to hold that the same was touching the Municipal limits and was on the Abohar-Ferozepur Road. The land had been acquired for the BSF Headquarters and therefore there was no similarity of the lands of the two villages. Similarly, the land of village Awa touched the Municipal limits of Fazilka town and the sale instance Ex.P43 to P45 related to village Sultanpura and Rampura were not applicable. The awards dated 27.11.2002 (Ex.P48) pertained to village Rampura and therefore being for the notification dated 29.06.1990 whereby market value was fixed @ `2,24,000/- per acre was not considered as a good guideline for grant of equal compensation. Similarly, the award dated 26.04.1989 which pertained to the notification dated 04.01.1989 wherein `2 lakhs per acre has been fixed as market value for the same village Rampura was also discarded.

(5) Resultantly, applying the capitalization method qua the yield from the land as per the oral evidence and assessing the income @ `25,000/- per acre and applying 50% cut, the income was assessed @ `16,000/- per acre. The multiplier of ‘12’ was applied to rate the market value less than ` 2 lakhs and the Court was of the opinion that since solatium had been given @ 30% the assessment of