The High Court’s in-depth legal analysis on land acquisition valuation and the impact of terrorism during that period sheds light on the complexities involved in determining fair compensation. By setting aside the cut on account of terrorism and recalculating the base value with a development cut, the Court establishes a nuanced approach to land valuation in challenging circumstances. This case not only clarifies the calculation methodology but also emphasizes the importance of considering various factors that may affect property values. Let’s delve into the key insights from this significant legal decision.
Facts
- High Court assessed market value at Rs.46.28 per square yard, amounting to Rs.2,23,995/- per acre.
- High Court subjected the base value to a further cut on account of terrorism in the State during that time.
- Appeal partly allowed to the extent of not justifying the further cut on account of terrorism.
- Court opines that a 50% cut should be fixed on a base value of Rs.92.56 per square yard.
- Court deals with appeals arising from land acquisition proceedings initiated in 1988 under the Land Acquisition Act.
- High Court determined base value of land as Rs.92.56 per sq. yd., with a 25% development cut and another cut due to terrorism.
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Issue
- No construction in the near vicinity
- Developing the area requires development cut
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Analysis
- The High Court relied upon the decision of this Court in General Manager, Oil and Natural Gas Corporation Limited v. Rameshbhai Jivanbhai Patel & Another, (2008) 14 SCC 745
- The High Court applied a rate of 7.5% as yearly appreciation
- A tabular chart was used to calculate the appreciation over the years
- The base value of Rs.92.56 per sq. yd. was arrived at using the calculated appreciation
- The High Court further subjected the base value to cuts on two counts
- The State was under shadow of terrorism during a particular period.
- The price at which transactions were undertaken would naturally be at depressed price.
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Decision
- Computation difference to be paid to concerned appellants by State within eight weeks
- Cut set-aside based on the grounds mentioned
- Value of Rs. 92.56 per square yard subject to 25% cut for development
- Disposal of appeals without any costs
- Net value determined as Rs. 69.42 per square yard
- Appellants entitled to all statutory benefits on the value of Rs. 69.42 per square yard
Case Title: MADAN LAL AND ORS.,ETC. Vs. THE STATE OF PUNJAB ETC. (2021 INSC 506)
Case Number: C.A. No.-005784-005798 / 2021
