Land Acquisition Compensation Enhanced: Court’s Legal Analysis

In a recent legal case, the High Court analyzed the compensation awarded for acquired lands in detail. The court delved into the validity of sale deeds and the justification for deductions, ultimately enhancing the compensation for original landowners. The analysis provided a comprehensive view on the factors considered in determining just compensation, emphasizing fairness and proper valuation. Let’s explore the court’s legal insights in this significant land acquisition case.

Facts

  • High Court partly allowed the appeals and enhanced compensation to Rs. 7,00,000/- per acre
  • Land Acquisition Officer awarded compensation at Rs. 5,30,000/- per acre for irrigated lands and Rs. 2,00,000/- per acre for non-irrigated lands
  • Reference Court fixed compensation at Rs. 5,30,000/- per acre for both irrigated and non-irrigated lands
  • High Court determined and enhanced compensation to Rs. 7,00,000/- per acre
  • Landowners feeling aggrieved by the High Court’s decision have preferred appeals for enhancement of compensation
  • The High Court found that the sale deeds produced as Exs. P3 and P4 are not genuine.
  • There is a price variation between the sale deeds produced as Ex. P1 and the sale deeds produced as Exs. P3 and P4.

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Analysis

  • The High Court erred in discarding sale exemplars Exs. P3 and P4 based on variation in prices compared to Ex. P1.
  • The High Court did not properly consider that Ex. P1 was executed by the company in favor of a private person, while Exs. P3 and P4 were in favor of the company itself, leading to higher prices.
  • The landowners heavily relied on sale exemplars Exs. P1 to P4, while the acquiring body and Indian Oil Corporation relied on Exs. R1 to R13, especially Ex. R12.
  • The High Court’s decision to discard Exs. P1, P3, and P4 was unjustified, making it safe to rely on these sale deeds for consideration.
  • The lands acquired were for a Liquified Petroleum Gas Plant, requiring minimal development like housing schemes.
  • 35% deduction is justifiable based on the evaluation in comparison to the Sale Deed at Ex. P4.
  • Sale Deeds at Exs. P3 and P4 are for smaller parcels of land, necessitating deductions for smaller area and development costs.

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Decision

  • The original landowners are entitled to Rs. 12,16,800/- per acre towards compensation for the lands acquired.
  • The appeals are partly allowed to the extent mentioned above.
  • No order as to costs in the circumstances of the case.
  • The impugned common judgment and order of the High Court is modified to provide just, reasonable, and proper compensation to the original landowners.
  • The original landowners shall be entitled to compensation at Rs. 12,16,800/- for the acquired lands along with statutory benefits and applicable interest under the Act, 1894.

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Case Title: HARI RAM (DECEASED) THR. HIS LRS. Vs. LAND ACQUISITION COLLECTOR CUM DISTRICT REVENUE OFFICER GURGAON (2022 INSC 1122)

Case Number: C.A. No.-007762-007762 / 2022

Click here to read/download original judgement

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