CAUSE TITLE:
Haryana State Industrial & Infrastructure Development Corporation Limited & Ors. v. Satpal & Ors.
DATE OF ORDER:
09 February 2023
JUDGE(S):
Hon’ble Mr. MR Shah and Justice Hima Kohli
PARTIES:
Appellant: Haryana State Industrial & Infrastructure Development Corporation Limited & Ors.
Respondent: Satpal & Ors.
SUBJECT:
The Hon’ble Supreme Court (hereinafter referred to as ‘Supreme Court’ or ‘the Court’), modified a judgement of the Punjab and Haryana High Court and held that a sale deed after the first notification cannot be made the basis to determine the compensation regarding the subsequent acquisition.
Accordingly, the appeal was allowed.
IMPORTANT PROVISIONS:
Land Acquisition Act, 1894
- Section 25 - The amount of compensation awarded by the Court should not be lower than the amount awarded by the Collector
BRIEF FACTS:
- The present appeal was filed by the Appellant company Haryana State Industrial & Infrastructure Development Corporation Limited & Ors.(HSIIDC), against the impugned order dated 05.07.2019 passed by the Punjab & Haryana High Court.
- Acres of land situated at villages Badh Malik, Pritampura, Jatheri, Rasoi, Akbarpur Barota etc. in Sonipat District, Haryana was to be acquired to construct the Kundli – Manesar – Palwal Express highway to connect the National Highway No.1 in Sonipat, district and expand the industrial sector 39 by different notifications. The present appeal only concerns the land acquired in the notifications dated 30.06.2005 and 5.3.2007 of villages Pritampura, Rasoi and Badh Malik.
- The Land Acquisition Officer granted compensation of Rs.16,00,000/- per acre which was enhanced by the Reference Court to Rs. 19,00,000/- per acre for only villages Badh Malik and Rasoi and not Pritampura as per notification dated 30.06.2005. For the land acquired through notification dated 5.3.2007, the Court only enhanced the amount of compensation for village Rasoi to Rs. 23,00,000/- per acre.
- An appeal to the High Court led to enhancement of the amount of compensation to Rs. 40,00,000/- per acre up to depth of 4 acres and Rs.30,40,000/- per acre beyond 4 crores for the land acquired through notification dated 30.06.2005. Similarly, the land acquired vide notification dated 5.3.2007 the compensation amount was enhanced to Rs. 50,00,000/- per acre up to depth of 4 acres and Rs. 38,00,000/- per acre beyond 4 acres
- In 2017, on an appeal to the Supreme Court, the orders passed by the High Court were set aside and remitted to the High Court for a fresh decision. The Court also disapproved the adoption of the belting system by the High Court as the acquisition for the Expressway passed through a different parcel of land. Furthermore, it was directed to the High Court that the land value for the KMP project acquisition would be the value prevalent in the locality before 13.08.2004.
- Subsequently, the High Court determined the compensation amount at Rs. 29,54,000/- per acre for the land acquired vide notification dated 30.06.2005 and enhanced the amount of compensation to Rs. 45,00,000/- per acre with respect to the land acquired vide notification dated 5.3.2007.
- Being aggrieved with the impugned of the High Court, HSIIDC filed the present appeals.
QUESTIONS RAISED:
- How to determine and assess the compensation amount per acre for the land acquired for expressway?
ARGUMENTS ADVANCED BY THE APPELLANT:
- The Counsel for the appellants contended that the High Court erred in enhancing the compensation amount to Rs. 29,54,000/- per acre for the land acquired vide notification dated 30.06.2005. It was argued that the High Court took reliance upon the builder’s sale deeds and failed to consider the state’s sale deeds.
- It was further contended that the High Court wrongly interpreted Section 25 of the Land Acquisition Act, 1894 and did not take the state’s sale deeds into consideration at all.
- It was submitted that the High Court did not properly appreciate the fact that in the neighbouring areas, the lands were already acquired from the notification dated 13.08.2004.
ARGUMENTS ADVANCED BY THE RESPONDENT:
- The Counsel for the Respondents contended that while determining the compensation for the land acquired under both the notifications, the High Court only considered the sale deeds in Ex. P43 & P44. It was argued that if other sale deeds would have been considered along with the development in the neighbouring areas, the amount of compensation awarded would have been on the lower side.
- It was further contended that in case of compulsory acquisition the landowners are entitled to the just compensation amount as per the fair market value. The respondents relied on the General Manager, Oil and Natural Gas Corporation Limited v. Rameshbhai Jivanbhai Patel and Another, reported in (2008) 14 SCC 745 (paras 13 & 14); Meharwal Khewaji Trust (Registered), Faridkot and others v. State of Punjab, 2012 to support their arguments.
ANALYSIS BY THE COURT:
- The Ld. Court observed that in the present case the agricultural lands were acquired from the villages Badh Malik, Pritampura and Rasoi in Sonipat district for the purpose of development of industrial sector 39, Sonipat.
- The Court also noted that there was a time gap of approximately one year nine months between the two notifications dated 30.06.2005 and 5.3.2007.
- The Court further noted that if the land value is to be fixed for the KMP project, the governing factor would be the value prevalent in the neighbourhood before 13.08.2004. However, the present case deals with the lands acquired for the expansion of industrial Sector 39, Sonipat which is why the compensation amount assessed for the land acquired through notification dated 30.06.2005 for villages Badh Malik, Pritampura and Rasoi can be said to be the relevant factor while determining the compensation amount.
CONCLUSION
The Ld. Court modified the judgement and order of the Punjab & Haryana High Court. The Court ordered that the claimants will be entitled to the compensation amount at Rs. 30,73,280/- per acre instead of Rs. 45,00,000/- per acre along with all other statutory benefits available under the provisions of the Land Acquisition Act, 1894.
