In a significant legal battle over land acquisition for road construction, the Supreme Court of India rendered a decisive judgment in the case involving the Gram Panchayat of Namhol. The Court addressed appeals filed by the State and claimants, focusing on the valuation of acquired land and the award of additional interest. Stay informed about the latest developments in this pivotal case.
Facts
- The Gram Panchayat, Namhol requested the appellants for the construction of a road from Namhol to Bahadurpur.
- Civil Appeals were filed by the State and respondents-claimants for additional interest of 15% per annum on the compensation awarded to them.
- Appellants filed appeals aggrieved by the High Court judgment.
- The possession of the land for road construction was taken in 1988.
- Land Acquisition proceedings were initiated to acquire 18-15 bighas of land at Tepra village.
- Notification under Section 4(1) of the Land Acquisition Act, 1894 was published on 30.7.2005.
- High Court passed a common award for assessing the market value of the acquired land based on land classification.
- Some landowners approached the High Court regarding the utilization of their land for public purpose without proper acquisition.
- Land Acquisition Officer assessed market value but respondents-claimants sought a reference under Section 18 of the Act for further claims.
- Appellants constructed the road from Tepra village as requested by the Gram Panchayat.
- High Court dismissed the appeals filed by the State
- Cross objections by the respondents were allowed by awarding interest at 15% per annum on the market value of the land
- Interest was awarded from 1.1.1989 till the date of Notification issued under Section 4(1) of the Act
- Reference Court fixed compensation at Rs.7.00 lakhs per bigha for all categories of land
- Appellants challenged the fixing of compensation at Rs.7.00 lakhs per bigha
- Respondents claimed interest from the date of taking possession to the date of publication of Section 4(1) Notification
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Arguments
- The land under sale deed Ex.PW-1/A was sold at Rs.10.00 lakhs per bigha but Reference Court deducted 30% and fixed market value at Rs.7.00 lakhs per bigha.
- PW-2 Garja Ram is one of the claimants in the acquisition proceedings.
- Appellants produced comparable sale under sale deed Ex.’RA’ for 4-51 bighas of land in village Dabar Paragana Bahadurpur Tehsil Sadar, Bilaspur, not considered by Reference Court.
- The High Court awarded damages at 15% per annum on market value of land for the period from possession to notification date.
- The lands of respondents-claimants, all small farmers, were taken possession in 1988 without being paid market value for their lands by the appellants.
- In absence of another comparable sale in the village, Reference Court and High Court rightly considered document Ex.PW-1/A to fix compensation at Rs.7.00 lakhs per bigha.
- Ex.PW-1/A dated 24.11.2004 is the land sold by PW-2 Garja Ram to PW-3 Kuldip for Rs.50,000 for one biswa of land.
- State of Himachal Pradesh contends that Reference Court fixed compensation based on small chunk of land from Ex.PW-1/A and granted abnormal hike in market value of the acquired land.
- Possession of the land in question was taken in 1988.
- Notification under Section 4(1) of the Act was issued on 30.07.2005 after directions in the writ petition.
- High Court awarded additional interest at 15% per annum on the market value of the land fixed by the Reference Court.
- Error was pointed out in awarding interest only on the market value instead of the total compensation payable to the respondents.
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Analysis
- PW-2, who is one of the claimants, cannot be considered a comparable sale for the large extent of acquired land
- The acceptance of Ex.PW-1/A as comparable sale by the Reference Court and High Court was an error
- Possession of the acquired land was taken in 1988, with notification issued in 2005
- Lack of documentary evidence and non-consideration of sale deed in Ex.’RA’ dated 04.05.2001
- State appeals are to be allowed for fresh consideration by the Reference/District Court
- Land Acquisition Officer categorized land into 5 categories with varying compensation rates
- Reference Court awarded uniform rate of Rs.7.00 lakhs per bigha based on Ex.PW-1/A
- Only one biswa of land was sold under Ex.PW-1/A for Rs.50,000
- C.W.P.No.735 of 2004 was filed in early 2004, while Ex.PW-1/A is dated 24.11.2004
- The fixation of market value at the rate of Rs.7.00 lakhs per bigha by the Reference Court was erroneous.
- The appeals filed by the State deserve to be allowed by remitting the cases to the Reference Court.
- The Reference Court made an error in relying on a document to fix compensation at Rs.7.00 lakhs per bigha.
- If no comparable sales are available, other methods for fixing compensation should be considered.
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Decision
- The Notification under Section 4(1) of the Act was issued on 30.7.2005.
- The Reference Court is directed to dispose of references within a period of six months from the date of this judgment.
- Claimants can request additional interest from the date of possession to the date of the Section 4(1) Notification, to be considered by the Reference Court according to the law.
- Opinion on the additional interest claim is not expressed and is to be independently considered according to the law.
- The State’s appeals are allowed while the claimants’ appeals are dismissed with no costs.
- Compensation already paid to the claimants is subject to further orders from the Reference Court.
- All State appeals are allowed by setting aside the common judgment dated 31.07.2017 in R.F.A. No 202 of 2011.
- Reference Court to consider sales in adjoining villages during the relevant period for fresh consideration.
- The Award of the Reference Court setting compensation at Rs.7.00 lakhs per bigha is set aside, and matters are remitted back for fresh consideration by the District Court.
- Both parties are permitted to provide further documentary and oral evidence to support their case.
- As the State appeals are allowed, the additional interest awarded at the rate of 15% per annum from the date of Notification is also set aside for fresh adjudication.
Case Title: THE STATE OF HIMACHAL PRADESH Vs. KANSHI RAM
Case Number: C.A. No.-006308-006308 / 2019
