Land Acquisition Compensation Dispute: Legal Analysis

Explore the nuances of a significant legal case revolving around land acquisition compensation. The court’s detailed legal analysis plays a pivotal role in resolving the dispute and ensuring fair treatment for all parties involved. This summary provides insights into the complexities of compensation determination in the realm of land acquisition law.

Facts

  • The appellants, original landowners, filed appeals challenging the dismissal of their appeals by the High Court and confirmation of the compensation at Rs.4.628 per square yard.
  • Civil Appeal No. 5740 of 2021 arose from the High Court’s dismissal of First Appeal No. 203 of 1983 and confirmation of compensation at Rs.6 per square yard.
  • A notification for land acquisition was issued on 30.04.1976 for 589 bigha, 6 biswa and 14 biswansi land for the development of industries by NOIDA.
  • Possession of the land was taken by the Collector on 31.07.1977.
  • The Reference Court enhanced the compensation to Rs.18,150/- per bigha (Rs.6 per square yard).
  • An application under Order XLI Rule 27 to bring additional documents as evidence was dismissed by the High Court on 02.11.2016.
  • Notification under Section 4 of the Land Acquisition Act issued on 16.09.1976 for acquiring land at Village Baraula, Pargana & District Ghaziabad.
  • Declaration under Section 6 issued on 16.09.1976.
  • Reference made to the Reference Court under Section 18 of the Land Acquisition Act at the instance of the original landowners to enhance compensation.
  • Landowners claimed compensation at Rs.10/- per square yard before the Reference Court.
  • Reference Court enhanced compensation to Rs.14,000/- per bigha (Rs.4.628 per square yard) after considering the material on record.
  • Landowners filed First Appeal Nos. 195 of 1983 and 487 of 1984 before the High Court of judicature at Allahabad.
  • High Court dismissed the appeals in which the compensation was sought to be further increased.
  • Special Land Acquisition Officer declared compensation award on 28.03.1977 at Rs.10,200/- per bigha (Rs.2.38 per square yard).

Also Read: Judicial Review of Delayed Writ Petition

Arguments

  • The appellants are seeking enhanced compensation of Rs.28.12 paisa per square yard based on the principle of parity and equality.
  • They also claim the enhanced compensation by adopting a formula that considers depreciation over the years of acquisition.
  • NOIDA, opposing the appeals, argues that the compensation has been consistently fixed at Rs.28.12 paisa per square yard for acquisitions in 1976-1977.
  • Counsel for the appellants reference the judgment in Mangu and Ors. Vs. State of U.P., where compensation was enhanced to Rs.297/- per square yard for acquisitions starting in 1983.
  • The High Court’s decision in Mangu and Ors. (supra) is contested as not applicable to the present case of acquisition in 1976.
  • There was a mix-up in the High Court’s disposal of cases related to acquisitions in different years, leading to inadvertent compensation enhancement.
  • The long-pending appeals have caused struggles for the original landowners over 45 years.
  • The High Court’s review decision to maintain compensation at Rs.28.12 paisa per square yard has been upheld by this Court.
  • Reference to the case of Savitri Devi Vs. State of Uttar Pradesh and Ors., where enhanced compensation and land plots were granted to balance the equity between landowners and the State.
  • Various judgments of the High Court have consistently fixed compensation at Rs.28.12 paisa per square yard for 1976 acquisitions.
  • The argument for enhanced compensation is presented from the context of landowners’ suffering and the need for fair compensation.
  • The appellant’s plea for compensation increase to Rs.297/- per square yard is based on the precedent set by Mangu and Ors. in 1977 acquisitions.
  • The Court’s dismissal of a special leave petition challenging the judgment in Mangu and Ors. confirms the decision on compensation.
  • Geographical proximity between the present case and the Mangu and Ors. case is highlighted to support the argument for compensation parity.
  • Review applications filed by NOIDA authority in four First Appeal (D) Nos. are pending and still defective.
  • Reference to the State of U.P. (supra) case deemed irrelevant due to differences in acquisition year and development of NOIDA area post-1980.
  • Request to reject landowners’ claim for compensation at Rs.297 per square yard.

Also Read: Ownership Dispute: Legal Analysis on Admission and Decree

Analysis

  • The present appellants are claiming compensation at Rs. 297 per square yard based on the judgment in the case of Mangu and Ors.
  • The High Court in Mangu and Ors. case enhanced compensation to Rs. 297 per square yard for acquisitions in 1977, leading to the claim for parity in the current case of 1976 acquisitions.
  • The High Court judgment in Mangu and Ors. case cannot be directly compared to the present case due to the 15-year time gap between acquisitions.
  • Review applications have been filed in the Mangu and Ors. case, and subsequent events have been requested not to be considered in the present appeals.
  • Possession of the land in Mangu and Ors. case was taken over in 1992, while in the current case it was taken over in 1976.
  • First Appeals relating to acquisitions in 1977 were inadvertently tagged along with First Appeal No. 1100 of 2004, causing a mechanical enhancement of compensation to Rs. 297 per square yard.
  • The claimants cannot rely on the Mangu and Ors. case for compensation based on the 1991 acquisition as the circumstances differ significantly from the present case of 1976 acquisition.
  • The judgment in Jagmal Vs. State of U.P. case determining compensation at Rs. 297 per square yard for acquisitions in 1976 was subsequently reviewed and compensation reduced to Rs. 28.12 paisa per square yard.
  • Considering the reviewed compensation in Jagmal Vs. State of U.P. case, the claimants in the current case may be entitled to compensation at Rs. 28.12 paisa per square yard for lands acquired in 1976-1977.
  • Attempting to claim compensation based on the mistake in the Mangu and Ors. case is not acceptable as no party can benefit from such mistakes.
  • In the acquisition pertaining to the year 1976-1977, the High Court consistently determined the compensation at Rs.28.12 paisa per square yard.
  • In the case of Jagdish Chand Vs. State of U.P., the compensation was determined at Rs.28.12 paisa per square yard for the same acquisition year.
  • Special leave petition No. 5740 of 2021 was filed to determine the compensation based on the judgment of the High Court in the case of Khazan and Ors. Vs.
  • The compensation determined for the lands acquired subsequently cannot be considered comparable.
  • In the case of the present appellants, the land was acquired in 1976 when there was no development, whereas in subsequent acquisitions, development had taken place after 1980.
  • The development plan had been sanctioned by the time the land was acquired in 1983.
  • Deducting 10% depreciation each year for 7 years to determine compensation is not acceptable.

Also Read: Interpretation of Statutory Limitation under Section 263(2)

Decision

  • Original landowners are entitled to compensation of Rs.28.12 paisa per square yard for lands acquired in 1976.
  • Appeals are partly allowed, with claimants receiving statutory benefits under the Land Acquisition Act on the enhanced compensation amount.
  • No costs are awarded in this case.
  • The High Court judgment is modified accordingly.

Case Title: AJAI PAL SINGH Vs. STATE OF UTTAR PRADESH (2021 INSC 531)

Case Number: C.A. No.-005738-005739 / 2021

Click here to read/download original judgement

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