Explore the detailed legal analysis and court decisions surrounding a contentious land compensation dispute. The focus is on the High Court’s thorough examination of various factors influencing compensation determination, setting a significant precedent in land acquisition cases. Learn about the complexities of compensation calculations and the court’s rationale behind its decisions.
Facts
- Original claimants/landowners dissatisfied with the High Court judgment dated 1.9.2021 in R.F.A. No 521/2017 for land acquired in village Baliyana, District Rohtak.
- Lands in village Kheri Sadh acquired for Industrial Model Township, Rohtak under Land Acquisition Act.
- Compensation initially determined by Reference Court at Rs. 17,00,000/- per acre challenged by both landowners and acquiring body.
- High Court judgment in line with Reference Court’s sale exemplars, but varied compensation for lands abutting highway up to one acre to Rs. 28,69,910/- per acre.
- Compensation for remaining lands beyond one acre on highway upheld at Rs. 19,77,000/- per acre.
- High Court decision confirmed compensation at Rs. 17,00,000/- per acre for all types of land in village Kheri Sadh.
- Appeals filed by original claimants due to dissatisfaction with compensation amount determined by High Court.
- Comparison made between compensation for lands in village Baliyana and village Kheri Sadh, located at different distances from highways.
- Original claimants rely on Splendour Land case as additional evidence to support their claim for higher compensation based on past rulings.
- Land acquired for public purpose of setting up Industrial Model Township, Rohtak
- Notification under Section 4 issued on 13.02.2008 for village Kheri Sadh
- Original claimants dissatisfied with compensation awarded by Land Acquisition Officer
- References made to Reference Court under Section 18 of the Act
- Original claimants preferred appeals against judgment dated 10.11.2021
- Land Acquisition Officer awarded compensation at Rs. 16,00,000/- per acre
- Original claimants relied on sale exemplars for compensation determination
- Most sale exemplars discarded by Reference Court as post-notification
- Notification under Section 6 issued on 11.01.2007 for First and Second Phase Acquisition
- Land acquired at village Baliyana for Industrial Model Township, Rohtak
- Notification under Section 4 issued on 9.6.2006 for village Baliyana
- Compensation determined at Rs. 16,00,000/- per acre by Land Acquisition Officer
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Arguments
- Submission that a 40% cut should be considered based on sale exemplar at Ex. P3
- Arguing that a 33% cut is generally reasonable as per precedent
- Pointing out that no cut should have been applied considering the potential and development of the area
- Criticism of reliance on sale exemplars at Ex. P8 and P9 where private builders were involved
- Argument against a 10% cut and lack of proportional increase for lands beyond one acre from the highway
- Disagreement with the 12% escalation rate granted by the High Court, citing fast development areas appreciating at a higher rate
- Contention regarding the potential of acquired land in village Baliyana and the need for higher compensation based on highest sale exemplar
- Request for compensation parity with the land acquired in village Kheri Sadh due to their shared boundary
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Analysis
- The original claimants in village Baliyana appealed the compensation determined by the High Court, citing a decision in the Splendour Land case for a higher compensation.
- Sale exemplars Ex. P8 & P9 were for small plots of land and were not considered reliable for setting compensation.
- Applying a uniform increase in compensation for acquired lands up to one acre from the highway and beyond was deemed appropriate due to lack of location maps and the lands being acquired under the same notification.
- High Court erred in applying a 10% cut instead of the 20% cut determined by the Reference Court for compensation near the highway.
- In the second phase acquisition of village Kheri Sadh, compensation rates were adjusted based on time gap, escalation, and comparison with the first phase acquisition.
- Original claimants in Baliyana could not claim the same compensation as Kheri Sadh claimants due to location and potential differences.
- Allotment to Maruti Suzuki post notification could not be the basis for compensation determination.
- Various sale instances post notification were rightfully disregarded.
- High Court did not provide reasons for applying a 10% cut when cuts typically range from 20% to 75%.
- In Lal Chand v. Union of India, deductions ranging from 20% to 75% of the sale price of small developed plots were allowed to determine the market value of a large tract of undeveloped agricultural land with development potential.
- In Krishan Kumar v. State, the Court emphasized the need for appropriate deductions from the value of small developed plots when calculating the market value, taking into account areas designated for roads, drains, and common facilities.
- High Court rightly determined compensation at Rs. 17,00,000/- per acre for lands acquired in village Baliyana.
- Allotment letter dated 13.08.2009 for 700 acres of land to Maruti Suzuki at Rs. 75,00,000/- per acre not reliable.
- HSIIDC must have incurred costs for development of land allotted to Maruti Suzuki including infrastructure facilities.
- Agreement with the view taken by the High Court.
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Decision
- The civil appeals preferred by the original claimants/landowners challenging the impugned judgment and order dated 1.9.2021 in R.F.A. No 521/2017 and other allied appeals deserve to be dismissed.
- The Civil Appeals preferred by the State/acquiring body challenging the impugned judgment and order dated 1.9.2021 in R.F.A. No 1113/2016 and other allied first appeals in respect of the ‘First Phase Acquisition’ for which notification under Section 4 of the Act was issued on 9.6.2006 are hereby dismissed.
- The Civil Appeals preferred by the State/acquiring body challenging the impugned judgment and order dated 1.9.2021 in R.F.A. No 1113/2016 and other allied first appeals in respect of the ‘First Phase Acquisition’ for which notification under Section 4 of the Act was issued on 9.6.2006 are partly allowed.
- The original claimants/landowners shall be entitled to the compensation at Rs. 24,00,000/- per acre for the acquired lands up to one acre abutting highway and Rs. 19,77,000/- per acre for the remaining lands beyond one acre from highway along with all statutory benefits.
- The civil appeals preferred by the original claimants/landowners challenging the impugned judgment and order dated 1.9.2021 passed in R.F.A. No 521/2017 and other allied first appeals for enhancement of compensation in respect of the acquired land of village Baliyana are hereby dismissed.
Case Title: BALWAN SINGH (DEAD) THR. LR. ETC. Vs. THE STATE OF HARYANA (2022 INSC 593)
Case Number: C.A. No.-003197-003216 / 2022
