Summary
For agricultural land in Sonipat villages acquired by notifications of 30 June 2005 and 5 March 2007 for Industrial Sector 39, the Punjab and Haryana High Court on remand fixed compensation at Rs. 29,54,000 per acre for the 2005 notification on two builder sale deeds of April 2005 with a 50 per cent cut, and Rs. 45,00,000 per acre for the 2007 notification on a sale deed of November 2006 with a 10 per cent cut. The Supreme Court partly allowed the acquiring corporation's appeals: the mean of the two exemplars less 50 per cent yields only Rs. 24,43,693, rounded to Rs. 24,50,000 per acre; a sale deed executed after the first notification in the same villages could not found the later valuation, and a 12 per cent cumulative annual increase on the 2005 figure for the gap of about one year and nine months gives Rs. 30,73,280 per acre.
Issues
- Whether the High Court correctly applied its own chosen sale exemplars and deduction in fixing compensation for the 2005 notification, and whether compensation for the 2007 notification could be based on a sale deed executed after acquisition in the same villages had commenced rather than on an escalation of the 2005 value.
Provisions considered
- Sections 4, 18 and 23, Land Acquisition Act, 1894Market value is determined on comparable sale exemplars with an appropriate deduction, and for a later notification covering the same villages and public purpose, a cumulative increase of 8 to 12 per cent a year on the earlier determination is a safe guide; a post-notification sale deed cannot be the basis for valuing a subsequent acquisition. (¶¶ 5.1, 6, 7, 8)
Held
- The landowners' own challenges to the High Court's judgment were dismissed earlier, so the appeals fall to be considered only at the instance of the acquiring corporation; the High Court applied a 50 per cent cut to Exhibits P43 and P44 yet, without adequate reasons, awarded Rs. 29,54,000 instead of the resulting Rs. 24,43,693 per acre. (¶¶ 2.4, 6, 7)
- For the 2007 notification the High Court inconsistently applied only a 10 per cent cut to a sale deed of 02.11.2006 executed after acquisition in the villages had commenced in June 2005; a 12 per cent cumulative increase for two years on Rs. 24,50,000 gives Rs. 30,73,280 per acre as just compensation. (¶ 8)
Result
Appeals partly allowed without costs; Punjab and Haryana High Court common judgment dated 05.07.2019 modified to fix compensation at Rs. 24,50,000 per acre for land acquired under the notification dated 30.06.2005 and Rs. 30,73,280 per acre for land acquired under the notification dated 05.03.2007, with all statutory benefits under the Land Acquisition Act, 1894.