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Courts Must Award Just Compensations To Meet The Ends Of Justice: Supreme Court

Megha Nautiyal ,
  17 February 2023       Share Bookmark

Court :
Hon’ble Supreme Court of India
Brief :

Citation :
Civil Appeal No. 900 of 2023

CAUSE TITLE:

State of Haryana & Anr. v. Subhash Chander & Ors.

DATE OF ORDER:

10 February 2023

JUDGE(S):

Hon’ble Mr. MR Shah and Justice CT Ravikumar

PARTIES:

Appellant: State of Haryana & Anr.

Respondent: Subhash Chander & 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 determined the amount of compensation to be paid by the appellant to the original land owners. 

Accordingly, the appeal was allowed.

IMPORTANT PROVISIONS:

Land Acquisition Act, 1894

  • Section 18 - Reference to Court - Any person interested who has not accepted the award may, by written application to the Collector, require that the matter be referred by the Collector for the determination of the Court, whether his objection be to the measurement of the land, the amount of the compensation, the persons to whom it is payable, or the apportionment of the compensation among the persons interested.
  • Section 25 - The amount of compensation awarded by the Court should not be lower than the amount awarded by the Collector

BRIEF FACTS:

  • A large chunk of lands situated at village Kherki, Majra of approximately 58 acres was acquired under   the   provisions   of   the   Land Acquisition Act, 1894 for the purpose of the public. 
  • Awards were declared by the land acquisition officer for the same. The reference court referred to Section 18 of the 1894 Act at the instance of the original land owners and enhanced   the   compensation amount for land acquired via notification dated 13.01.2010 from Rs. 60 lakhs per acre (as preferred by the land acquisition officer ) to Rs. 1,56,24,000/­- per acre.
  • Thereafter, an appeal was filed by the State challenging the judgement and award passed by the reference court determining the compensation amount at Rs. 1,56,24,000/­- per acre which was later dismissed.
  • However, for the lands   acquired   in   the   month   of January, 2008, the High Court assessed and awarded the compensation at Rs. 2,98,54,720/­ per acre. 
  • Aggrieved with the impugned judgement and order passed by the   High   Court   assessing   and   awarding   the compensation   for   the   lands   acquired through notification dated 13.01.2010 at Rs. 2,98,54,720/­ per acre, the State of Haryana has has filed the present appeal. 

QUESTIONS RAISED:

  • What should be the correct compensation amount to be awarded for the lands acquired for the public purpose?
  • How to determine and assess the compensation amount per acre for this land?

ARGUMENTS ADVANCED BY THE APPELLANT:

  • The counsel appearing on behalf of the appellant, Shri Nikhil Goel, learned AAG, contended that the High   Court   has failed to take into consideration or rely upon the judgement of the Supreme Court passed in Civil Appeal Nos. 11814­11864 of 2017 [State of Haryana Vs. Ram Chander (2017 SCC OnLine SC   1869)]  for the   lands   acquired   through notification issued in the month of January, 2008 while determining the compensation at Rs. 2,98,54,720/­ per acre for the lands   acquired   vide   notification   dated   13.01.2010. 
  • The appellant further contended that in the judgement and order passed by the Supreme Court in Civil Appeal Nos. 11814­11864 of 2017, it was specifically noted and held that the determination of compensation amount through the said judgement at Rs.   2,38,00,000/­   per   acre will not   be   treated   as   a precedent in any other case. Therefore, the High Court erred by taking into consideration the compensation amount awarded by the SC through judgement and order passed in Civil Appeal Nos. 11814­11864 of 2017 at Rs. 2,38,00,000/.
  • It is further submitted by the appellant that the High Court erred in giving 12% rise on Rs. 2,38,00,000/­ per acre for the land acquired through notification dated 25.01.2008 because the prices of the lands concerning the present case artificially increased from 2008 onwards. 

ARGUMENTS ADVANCED BY THE RESPONDENT:

  • The counsel appearing on behalf of the respondent land owners argued that the State cannot challenge the impugned common judgement and order passed by the High Court as the appeals filed by the State have already been dismissed once.
  • It was further argued that the High Court has not erred in granting the enhancement of 12% on Rs. 2,38,00,000/­ per acre as the sale instances from 09.03.2007 till 31.03.2008 indicate increase in prices. 
  • It was submitted that as of yet no concrete evidence has been presented before the Court of sale instances indicating a decrease in the market value between 2008 and 2010. 
  • The respondent also relied on the judgement of the Supreme Court in Ramrao   Shankar Tapse   Vs.   Maharashtra   Industrial   Development Corporation  and  Ors.;   (2022)  7  SCC  563 case in which it was noted that an increase of 10 to 15% per year in the market value of land may be accepted.

ANALYSIS BY THE COURT:

  • The Ld. Court considered its earlier decision in the case of Civil Appeal Nos. 11814­11864 of 2017 by which the lands acquired vide notification dated 25.01.2008, the compensation amount was assessed at Rs. 2,38,00,000/­ per acre. In that judgement and order, it was specifically observed that the said judgement may not be treated as a precedent. 
  • The Court observed that it considered and accepted the sale instances produced on record by the original landowners ranging between 2007 and 2008.
  • It was further observed that considering the fact that in the instant case with respect to   the Village Kherki, Majra, the proceedings for the acquisition initiated in the month of January, 2008, and therefore, it will not be prudent to grant the increase of 12%. 
  • It was noted by the Ld. Court that as per the facts and circumstances of the present case, instead of 12% enhancement on Rs. 2,38,00,000/­, a 10% increase would be a just compensation to meet the ends of justice. 

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. 2,87,98,000/­ per acre along with all the statutory benefits available under the Land Acquisition Act, 1894

Accordingly, the appeals were allowed

 
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