Delve into a recent legal case where the court examined the disparity in compensation rates for lands acquired for different projects. The focus is on the court’s detailed legal analysis regarding the varying compensation amounts and the factors considered in determining just and reasonable compensation for the landowners involved.
Facts
- Land situated at village Jharli, District Jhajjar, Haryana acquired for Jhajjar Thermal Power Plant and Arawali Power Company Private Limited.
- Notification under Section 4 of the Land Acquisition Act, 1894 issued on different dates for the two projects.
- Acquiring lands on west and east sides of Bahu Road, Jhajjar, Haryana respectively.
- Compensation awarded at Rs. 16,00,000/- per acre by the Land Acquisition Collector.
- Lands acquired for both projects were out of the same survey No 73 in one appellant’s case.
- Land Acquisition Collector issued declarations under Section 6 of the Act, 1894 for the acquisitions.
- Original claimants/landowners challenging the compensation amount.
- High Court’s judgment being appealed by the original claimants.
- The High Court allowed the appeals of the State/acquiring body and dismissed the appeals of the original claimants/landowners, reducing the compensation to Rs. 16,00,000/- per acre as awarded by the Land Acquisition Collector.
- The High Court then increased the compensation to Rs. 29,00,400/- per acre.
- The Reference Court had initially set the compensation at Rs. 17,64,350/- per acre.
- This Court, in a previous judgment, determined compensation at Rs. 25,00,000/- per acre in a different case, noting it as specific to those circumstances and not a precedent.
- The High Court, in the present case, did not follow the Rs. 25,00,000/- per acre precedent but instead maintained the Land Acquisition Collector’s rate at Rs. 16,00,000/- per acre.
- The matter is now before the Court as the landowners/original claimants have filed appeals seeking higher compensation based on similarities with a previous case involving Arawali Power Company Private Limited.
- The Reference Court also set compensation at Rs. 16,00,000/- per acre, leading to appeals by both the acquiring body/beneficiary and the original claimants/landowners against the Rs. 17,64,350/- per acre judgment.
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Arguments
- The claimants relied on two sale exemplars/sale deeds executed post Section 4 notification in 2010.
- One sale deed dated 16.05.2007 was for a small parcel of land.
- The lands acquired for Jhajjar Thermal Power Plant and Arawali Power Company Private Limited were similar, with a road passing between them.
- There should be no differential compensation for different parts of the same land.
- Other Advocates for landowners supported the submissions made by Shri Shyam Divan.
- The reliance on the Arawali Power Company Private Limited case was contested, stating it should not be treated as precedent.
- The appeals are opposed by Shri Neeraj Kishan Kaul representing the Jhajjar Thermal Power Plant.
- Neeraj Kishan Kaul argued that compensation should be at Rs. 25,00,000/- per acre, as determined in the Arawali Power Company Private Limited case.
- It was emphasized that the landowners are entitled to just compensation.
- Learned counsel representing the State of Haryana supported the impugned judgment of the High Court
- The High Court allowed the appeals for the Jhajjar Thermal Power Plant and determined compensation at Rs. 16,00,000 per acre
- The High Court did not rely on sale exemplars/sale deeds post Section 4 notification
- The claimants/landowners did not provide any evidence as observed by the High Court
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Analysis
- The lands acquired for Arawali Power Company and Jhajjar Thermal Power Plant in the same village were determined to have different compensation rates.
- Compensation for Arawali Power Company was set at Rs. 25,00,000/- per acre, while Jhajjar Thermal Power Plant was set at Rs. 16,00,000/- per acre.
- Sale deeds executed post section 4 notification were considered due to being agreed upon by parties, despite normally not being admissible.
- The lands for both projects were deemed similarly situated, albeit with a difference in the time of section 4 notification issuance.
- The Court’s use of ‘in the peculiar facts of the case and not to be treated as precedent’ was specifically for considering post-notification sale deeds.
- The different compensation rates for the two projects led to disparity in amounts awarded to landowners for the same survey land parcel.
- Despite the Court’s disclaimer of ‘not to be treated as precedent’ in the Arawali case, it is context-specific and should be understood accordingly.
- The only geographical distinction between the lands was their location on opposite sides of Bahu Road in Jhajjar.
- It was noted that survey No 73, owned by Jagvir, was acquired for both Arawali Power Project and Jhajjar Thermal Power Plant.
- Subsequent sale deeds and determined compensation at Rs. 25,00,000/- per acre with 15% deduction considered.
- Landowners entitled to just and reasonable compensation.
- Compensation awarded at the rate of Rs. 22,00,000/- per acre deemed just and reasonable.
- Impugned judgment and order to be modified accordingly.
- Landowners in specific appeals not entitled to interest on enhanced compensation amount.
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Decision
- The landowners whose lands have been acquired for Jhajjar Thermal Power Plant are entitled to compensation at the rate of Rs. 22,00,000/- per acre.
- There shall be no order as to costs in this case.
- Landowners in certain appeals are not entitled to any interest on the enhanced amount of compensation due to delay in filing/refiling the appeals before the High Court.
- Landowners shall be entitled to all statutory benefits including interest available under the Act, 1894.
- The present appeals have succeeded.
Case Title: JASPAL SINGH Vs. THE STATE OF HARYANA (2022 INSC 1126)
Case Number: C.A. No.-007516-007521 / 2022
