In a recent legal case, the High Court conducted a detailed analysis on market value determination for land acquisition. The Court’s decision on the deduction percentage and compensation awarded sheds light on the intricacies of assessing fair compensation. Understanding the legal nuances of such judgments is essential for all stakeholders involved in land acquisition disputes.
Facts
- The Land Acquisition Officer assessed the market value of the acquired lands of both villages at Rs.6,87,837 per acre.
- The Reference Court determined and enhanced the market value of the acquired lands to Rs.9,65,000 per acre.
- The judgment and award of the Reference Court at Rs.9,65,000 per acre was appealed before the High Court.
- The High Court determined the market value of the acquired lands at Rs.11,28,580/- per acre.
- After a 50% cut, the market value was rounded off to Rs.11,30,000/- per acre.
- The High Court considered sale transactions exhibit P-73 and P-74 for determining land value.
- The average price of the sale transactions was calculated to be Rs.22,57,000/- per acre.
Also Read: Ruling on Circumstantial Evidence in Murder Case
Analysis
- Notification under Section 6 of the Land Acquisition Act, 1894 issued on 23.03.1999.
- Notification under Section 4 of the Land Acquisition Act, 1894 issued on 19.03.1999 for acquiring land in Village Hallo Majra and Village Behlana.
- Land acquisition for use by Defence Security Forces.
- Reference Court rejected reliance on sale deeds P-43, P-44, P-73, and P-74 due to small plot size.
- Original claimants relied heavily on sale instances at exhibit P-43, P-44, P-73, and P-74 before the High Court.
- High Court findings on sale instances exhibit P-73 and P-74 as best exemplars for determining market value
- Question of justification of 50% deduction by High Court
- No appeals by Chandigarh Administration against sale instances P-73 and P-74
- Lack of discussion by High Court on application of 50% deduction
Also Read: Challenging Legal Presumptions in Negotiable Instrument Cases
Decision
- Learned counsel requested the Court to make appropriate percentage deductions instead of remanding the matters to the High Court.
- Considering the location and size of the acquired lands, a deduction of 40% is deemed appropriate for determining the market price, instead of the 50% applied by the High Court.
- This 40% deduction amounts to Rs.13,54,200 per acre for compensation.
- The present appeals are allowed in part, modifying the High Court’s judgment to award Rs.13,54,200 per acre as compensation.
- The landowners are entitled to statutory benefits on the enhanced compensation amount.
- Appellants in a specific case are not entitled to interest on delay in compensation, but solatium is payable for the period of delay.
- The appeals are partly allowed as per the above decisions, and there is no order as to costs.
- Remand to the High Court for applying the proper cut is typically required, but not in this particular case.
Also Read: Legal Analysis Critique in High Court’s Quashing Order
Case Title: JAI PARKASH ETC ETC Vs. UNION TERRITORY, CHANDIGARH ETC ETC (2022 INSC 290)
Case Number: C.A. No.-001765-001767 / 2022
