Land Acquisition Compensation Assessment Legal Analysis

In this case summary, the focus is on the detailed legal analysis conducted by the court regarding the assessment of compensation in a land acquisition matter. The court’s examination delves into various factors influencing the determination of fair compensation, highlighting the importance of thorough consideration in such cases. Stay tuned to understand the complexity of compensation assessment in land acquisition disputes.

Facts

  • Land situated at village Hansi and Dhana, District Hisar, Haryana was acquired for development of residential and commercial sectors.
  • Common notification under Section 4 of the Land Acquisition Act, 1894 was issued on 29.08.2005.
  • Reference Court allowed the reference petitions filed by the landowners and assessed the market value at Rs. 1,000/- per square yard (Rs. 48,20,000/- per acre).
  • Landowners were not satisfied with the compensation amount and filed first appeals before the High Court for enhancement of compensation.
  • Land Acquisition Collector declared the award under Section 11 of the Act 1894 on 3.8.2007, assessing market value at Rs. 12,00,000/- per acre for land abutting G.T. Road and Rs. 10,00,000/- per acre for land abutting Jind By-pass Road.
  • State accepted the judgment and order passed by the Reference Court determining the amount of compensation/market value of the acquired land at Rs. 1,000/- per square yard.
  • The High Court erred in determining compensation at Rs. 4,173/- per square yard by relying on a decade-old acquisition case
  • The matter was remitted to the Reference Court as some sale instances were not considered
  • The compensation amount was reduced to between Rs. 166/- per square yard to Rs. 200/- per square yard by the High Court
  • The original landowners have filed appeals against the High Court’s decision
  • The case was remitted to the High Court for fresh consideration by a previous judgment dated 16.05.2018
  • The High Court initially assessed the market value at Rs. 4,173/- per square yard based on a previous court decision in the case of Ashrafi
  • The matter was remanded to the Reference Court by the High Court for a detailed examination of sale deeds
  • On remand, the Reference Court assessed compensation at Rs. 750/- per square yard
  • The High Court, in the impugned judgment, dismissed the appeals of landowners and approved the compensation amount assessed by the Land Acquisition Collector

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Arguments

  • The original landowners are claiming compensation at more than Rs. 1,000/- per square yard based on sale deeds.
  • The State contends that the Reference Court assessed compensation at Rs. 750/- per square yard, therefore the landowners are not entitled to Rs. 1,000/- per square yard.
  • Some Senior Advocates argue that the State accepted the earlier judgment of Rs. 1,000/- per square yard but did not appeal, leaving the landowners to seek enhancement.
  • The State did not challenge the Rs. 1,000/- per square yard judgment in previous proceedings, as noted by the Court in prior judgments.
  • The appeals made by the State to reduce compensation below Rs. 1,000/- per square yard were not justified according to the landowners’ representatives.
  • High Court did not err in allowing the appeals by the State and upholding the awards passed by the Land Acquisition Collector
  • High Court considered and compared sale deeds provided by both the State and landowners
  • Concluded that landowners failed to produce sufficient evidence to prove error in the Collector’s award

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Analysis

  • The landowners are entitled to compensation at Rs. 1,000 per square yard based on the earlier judgment.
  • The State Government did not challenge the compensation amount set by the Reference Court at Rs. 1,000 per square yard.
  • The State’s non-filing of appeals against the compensation amount was noted by the Court.
  • The matter was remanded to the Reference Court to consider sale deeds for enhancement of compensation based on the landowners’ submissions.
  • Sale deeds relied upon by the landowners were mostly before the Section 4 notification in 1992-1994, with some post-notification.
  • The Court considered the sale deeds but found Rs. 1,000 per square yard to be the appropriate compensation amount.
  • Determining compensation based on sale deeds closer to Section 4 notification is not considered safe.
  • Other factors should be considered in determining compensation for the property.

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Decision

  • All appeals allowed to the extent that the impugned judgment restoring the awards passed by the Land Acquisition Collector is quashed and set aside.
  • Original landowners/claimants entitled to compensation at Rs. 1,000 per square yard.
  • State has already paid compensation at Rs. 1,000 per square yard, now sought to be recovered due to the High Court’s judgment restoring lower awards.
  • Claimants/landowners entitled to compensation at least at Rs. 1,000 per square yard.

Case Title: RADHEY SHAM Vs. THE STATE OF HARYANA (2022 INSC 1101)

Case Number: C.A. No.-007391-007391 / 2022

Click here to read/download original judgement

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