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Market Value Of Land May Increase By A Total Of 8 To 15 Percent Annually: In The La Case, Sc Modifies Compensation

sahithi reddy ,
  17 February 2023       Share Bookmark

Court :
IN THE SUPREME COURT OF INDIA
Brief :

Citation :
CIVIL APPEAL NOS. 859­899 OF 2023

CAUSE TITLE:

State of Haryana & Anr Versus Subhash Chander & Ors.

DATE OF ORDER:  

10.02.2023

JUDGE(S):

M.R.Shah, C.T.Ravikumar

PARTIES:

Petitioner: State of Haryana & Anr

Respondent:Subhash Chander & Ors.

SUBJECT

The Supreme Court amended the order of the High Court in this case from a 12% enhancement to a 10% enhancement, reiterating that an increase awarded between 8% and 15% is allowed according to its catena of decisions. Hearing the appeals filed by the State of Haryana was a bench comprising Justices MR Shah and CT Ravikumar.

BRIEF FACTS 

  • Approximately 58 acres of land in the village of Kherki, Majra, were acquired for public use under the requirements of the Property Acquisition Act of 1894. The land acquisition officer made the rewards public. The original landowners asked that Section 18 of the Act of 1894 be referred to. The compensation for the notification dated 13.01.2010 was raised by the reference court from Rs. 60 lakhs per acre as determined by the land acquisition officer to Rs. 1,56,24,000/­per acre. The State's appeals against the reference court's decision and award, which determined the compensation to be Rs. 1,56,24,000/­, were ultimately denied.
  • But by the impugned judgment and order, which took into account the compensation amount increased by the High Court and modified by this Court to Rs. 2,38,00,000/­ per acre concerning the lands acquired in January 2008 and granted a 12% cumulative increase, the High Court has partially allowed the appeals made by the landowners and determined and awarded the compensation at Rs. 2,98,54,720/­p.

ARGUMENTS ADVANCED BY THE APPELLANT

Speaking on behalf of the State of Haryana in the Supreme Court, argued that the High Court erred in citing the Supreme Court's decision in State of Haryana Vs. Ram Chander bought the lands acquired in January 2008, where the Supreme Court set the compensation at Rs. 2,38,00,000 per acre.

ARGUMENTS ADVANCED BY THE RESPONDENT

  • On the other side, the attorney for the landowners said that since the State's appeals were rejected, it is no longer possible for the State to contest the impugned order issued by the High Court. Further, it was argued that prices rose from March 9, 2007, to March 31, 2008, and that the High Court did not err in increasing the price by 12% to Rs. 2,38,00,000 per acre.
  • In Ramrao Shankar Tapse Vs. Maharashtra Industrial Development Corporation and Ors, the Supreme Court held that a cumulative increase in the market value of the land of between 10% and 15% annually may be permitted.

ANALYSIS BY THE COURT 

  • The Supreme Court ruled that "even on the merits, this Court considered and approved the sale samples given on behalf of the land owners ranging between 2007 and 2008."
  • The compensation of Rs. 2,38,00,000 per acre for the land acquired via notification published on January 25, 2008, can therefore be deemed to be the base.
  • The Court made the clear statement that it would not be considered a precedent in any future case. The Court added that an increase of between 8% and 15% is acceptable according to the chain of its rulings given the time lapse between the 2008 notification and the 2010 notification. However, the Court determined that it would not be safe or wise to grant the cumulative increase of 12% given that the purchase procedures were only started in January 2008.
  • The statement read, "Given the facts and circumstances of the case, even taking into account the sale instances produced on record, we think that if instead of 12% enhancement on Rs. 2,38,00,000/, 10% increase is accepted it can be said to be a just compensation and it may meet the ends of justice." The State of Haryana was then ordered by the Supreme Court to give the original landowner(s) compensation at the market value of Rs. 2,87,98,000 together with all other legal benefits within a six-week timeframe.

Click here to download the original copy of the judgement

 
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