Land Acquisition Compensation Dispute

Explore a recent legal case delving into a dispute over land acquisition compensation, where the court’s legal analysis sheds light on factors like market value determination based on proximate sale instances. The significance of the acquired land’s potential for development and change, as well as deductions based on various factors, are highlighted. Stay tuned to understand the court’s insightful considerations in this intricate legal matter.


  • The present appeals arose from an order by the High Court of Judicature at Allahabad on 19.07.2019, awarding compensation of Rs. 297/- per square yard for land acquired in six villages.
  • Land owners dissatisfied with the compensation awarded by the Special Land Acquisition Officer sought a Reference to determine the market value.
  • Sale deeds dated 13.1.1986 and 15.1.1986 were not considered by the High Court due to being more than 3 1/2 years after the land acquisition notification.
  • The total area of land for which compensation was awarded in the six villages was specified, with 72.019 acres belonging to the Gram Panchayat or State Government.
  • The Parishad’s appeal in U.P. Avas Evam Vikash Parishad v. Jawahar Lal & Ors for land in Village Prahladgarhi was dismissed on 21.07.2015.
  • The land in Ghaziabad sought by the Parishad is on the north side of National Highway-24, while the south side falls under Noida, District Gautam Budh Nagar.
  • High Court found that compensation based on certain sale deeds would be lower than what was awarded by the Reference Court
  • Appeal by landowners against Reference Court’s award initially dismissed on 16.12.2015
  • High Court decided 53 appeals on 19.07.2019, awarding Rs. 297/- per square yard as compensation
  • Remand by Supreme Court to High Court on 16.2.2016 for reconsideration of compensation amount
  • High Court awarded Rs. 297/- per square yard as compensation after remand on 21.04.2016
  • 51 appeals related to land acquisition by Parishad, others by Ghaziabad Development Authority
  • High Court treated notifications for acquisition by Parishad and GDA as same proceedings
  • Land owners relied on three sale deeds to claim higher compensation
  • High Court considered the three sale deeds but upheld compensation at Rs. 120/- per square yard
  • High Court referred to compensation of Rs. 297/- per square yard in a previous case for similar land acquisition by State

Also Read: Critical Analysis of Circumstantial Evidence in Arson Case


  • Mr. Gupta argued on behalf of the land owners in Village Makanpur, contending that the land was subject to acquisition by Noida, GDA, and the Parishad.
  • Mr. Mishra, representing the Parishad, emphasized the importance of the notification date of 26.6.1982 for the land acquisition.
  • It was highlighted that Village Makanpur is closer to Delhi compared to other villages now under Noida.
  • Reference was made to the presence of industrial units and residential colonies in Vaishali and Kaushambi at the time of acquisition, as per PW-1 Inderraj Singh’s statement.
  • The argument was made that the land acquired is better located than the land under Noida’s acquisition.
  • Distances of villages under Noida and Ghaziabad from Delhi’s borders were presented in the submissions.

Also Read: Analysis of Commencement Date in Gratuity Act Amendment Case


  • The court emphasized the importance of determining market value based on actual sale instances that are proximate to the date of notification and the specific land to be acquired.
  • The potentiality of the acquired land was highlighted as a crucial factor in determining market value, referring to its capacity for development or change.
  • Different notifications for land acquisition at varying times were discussed, noting the importance of considering all relevant factors including potential value and existing conditions.
  • Various deductions were made by the Reference Court based on the size of land plots in different villages, ensuring a reasonable and adequate adjustment in compensation calculations.
  • The significance of connectivity, development of surrounding areas, and available amenities like water and electricity in determining the market value were acknowledged by the court.
  • The court also observed that judgments referring to acquisitions in the Noida region were not directly applicable to the cases concerning the specific villages under consideration in the present appeals.
  • Compensation assessed in other cases is after the date of notification, so orders are not determinative of amount of compensation.
  • Market value as determined by High Court cannot be sustained based on sale deeds or judicial orders.

Also Read: Interpretation of Will and Hindu Succession Act: Legal Analysis


  • The appeals are allowed
  • The order of the High Court is set aside
  • Compensation awarded by the Reference Court of Rs.120/- per square yard is restored
  • Statutory benefits are also to be provided


Case Number: C.A. No.-000337-000337 / 2021

Click here to read/download original judgement

Leave a Reply

Your email address will not be published. Required fields are marked *