Vide the impugned judgment, the High Court allowed the writ petitions filed by the land owners by enhancing the market value of the acquired land to Rs.2,000/- per marla and granted all statutory benefits available under the Land Acquisition Act 1894 (hereinafter referred to as the said Act).
Also Read: https://newslaw.in/supreme-court/high-court-dismisses-bail-application-in-corruption-case/
The Hoshiarpur Improvement Trust (Respondent No.3 herein) prepared a scheme for the purpose of Development Scheme (residential) under Sections 24, 25 and 28 of the Punjab Town Improvement Act 1922 in an area admeasuring 291 kanals 7 marlas situated within the Municipal limits in village Purhiran and Sutehri.
The respondent/ Land Acquisition Collector passed an award on 11.07.1997 awarding the compensation at Rs 1.07 lakhs per acre for Chahi (Rs.668.75 per marla) and Rs.1.10 lakh per acre for the remaining kinds of lands (Rs.687.50 per marla) for 3 village Purhiran and Rs.1.50 lakh per acre for all kinds of land (Rs.714.30 per marla) for the village Sutehri.
The Reference Court/Tribunal vide common award dated 17.04.2009 enhanced the compensation from Rs.668.75/- per marla to Rs.1337.50 per marla for the land Chahi and from Rs.687.50/- per marla to Rs. The learned counsel for the respondent state however submitted that when a large chunk of land is being acquired, a suitable deduction is required to be made towards the development charges as per the settled legal position, which has rightly been done by the High Court. Accordingly, the determination of market value is the process of predicting an economic event that is assuming a price a willing vendor would offer to a willing purchaser in normal market conditions, but not an event of anxious dealing at arm’s length nor a facade of sale nor fictitious sale brought about in quick succession or otherwise to inflate the market value. The size and nature of the lands acquired and size and nature of the lands in respect of which sale 6 instances are produced on record, also would be an important aspects in as much as normally the sale instances of small piece of land can not form reasonable basis to determine the market value of large chunk of land, unless suitable deductions are made in respect of development charges.
Patwalia had sought to submit that the High Court had failed to consider the sale instance of the shop executed in close proximity of the date on which the lands in question were acquired, we do not find any merit in the said submission.
Also Read: https://newslaw.in/supreme-court/illegality-of-arrest-under-pmla/
It is well settled position of law that while determining the deduction for development charges, the courts should keep in mind the 8 nature of land, area under acquisition, whether the land is developed or not, if developed to what extent, the purpose of acquisition etc. The extent of the area required to be set apart in this connection has to be assessed by the court having regard to the shape, size and situation of the concerned block of land etc. The development authority will also incur considerable expenditure for development of undeveloped land into a developed layout, which includes the cost of levelling the land, cost of providing roads, underground drainage and sewage facilities, laying water lines, electricity lines and developing parks and civil amenities, which would be about 35% of the value of the developed plot.
State of Haryana, held that there may be various factual factors which may have to be taken into consideration while applying the cut in payment of compensation towards developmental charges, maybe in some cases it is more than 1/3rd and in some cases less than 1/3rd. However, in cases of some land where there are certain advantages by virtue of the developed area around, it may help in reducing the percentage of cut to be applied, as the developmental charges required may be less on that account.
The fact that an area is developed or adjacent to a developed area will not ipso facto make every land situated in the area also developed to be valued as a building site or plot, particularly when vast tracts are acquired, as in this case, for development purpose.”
Also Read: https://newslaw.in/supreme-court/dismissal-of-bail-application-in-money-laundering-case/
The High Court in the impugned judgment after applying the ratio of decisions in case of Brig.
Case Title: MALA ETC. ETC. Vs. THE STATE OF PUNJAB (2023INSC735)
Case Number: C.A. No.-003992-004000 / 2011
