Summary
In cross appeals concerning the 2002 acquisition for the Industrial Model Township at Manesar, the Supreme Court reassessed compensation using sale exemplars and the earlier Pran Sukh award. It differentiated escalation between groups of villages, retained Manesar’s locational premium, rejected additional severance compensation for Kohli Holdings, and directed return of excess payments. The reported figures incorporate the corrections of 8 February 2019.
Issues
- How sale exemplars and escalation over an earlier acquisition award should determine market value.
- Whether differing village values warranted different escalation and a locational premium.
- Whether Kohli Holdings was entitled to additional severance charges and excess payments had to be returned.
Provisions considered
- Section 23(1), first and thirdly, Land Acquisition Act, 1894Market value was reassessed on the acquisition evidence; further severance compensation was refused where the remaining holding did not suffer the requisite diminution. (¶¶ 18, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30)
Held
- Allotments and auctions of developed plots were unsuitable comparators here. Escalation depends on location, surrounding development, availability and demand; mechanical extrapolation across long periods and reliance on later transactions require caution. (¶¶ 16, 18)
- Given the earlier common treatment, a common 1994 base rate was retained, but differences shown by the village sale records remained relevant to escalation. The Court compared three valuation methods for Naharpur Kasan and Kasan and adopted the highest figure. (¶¶ 21, 22, 23, 24, 25, 26)
- Market value was fixed at Rs.39,54,666 per acre for Naharpur Kasan and Kasan, Rs.29,77,333 for Bas Kusla, Bas Haria and Dhana, and Rs.59,31,999 for Manesar, with statutory benefits. The 50% Manesar premium reflected its highway location and commercial potential. (¶¶ 26, 27, 28, 30)
- The additional 30% severance award to Kohli Holdings was set aside: severance compensation requires damage to the retained holding, whereas its commercial potential would benefit from neighbouring development on these facts. (¶¶ 29, 30)
- Excess compensation was to be returned by 30 June 2019 without interest if returned in time; otherwise it would carry 9% annual interest from 1 July 2019 until recovery. (¶ 30)
Result
HSIIDC and State appeals allowed to the specified extent; landowners’ appeals dismissed. Revised village-wise rates with statutory benefits; no severance charges to Kohli Holdings; excess-payment refund directed. No costs.