Summary
Land at Bhondsi village, Gurgaon, was acquired in 1996 for Indian Oil's LPG plant. The Punjab and Haryana High Court fixed compensation at Rs 7 lakh an acre, relying on the acquiring body's sale exemplar. It rejected the landowners' exemplars as not genuine because they were sales by or to one company at differing prices. The Supreme Court held that rejection to be a serious error. A company reselling land it had bought would naturally sell at a higher price, so the price variation did not make those deeds suspect. Relying on the landowners' exemplar for a smaller plot, the Court deducted 35% for size and development. It noted that an LPG plant needs less development than a housing scheme. Compensation was enhanced to Rs 12,16,800 per acre with statutory benefits.
Issues
- Whether the High Court rightly discarded the landowners' sale exemplars as not genuine, and what compensation was payable for land acquired for an LPG plant.
Provisions considered
- Market value and statutory benefits, Land Acquisition Act, 1894Market value was redetermined on the landowners' sale exemplar with a 35% deduction for smaller area and development, together with statutory benefits and interest. (¶¶ 8, 9)
Held
- The High Court erred in discarding the sale deeds because they were by or in favour of the same company at varying prices; when a company resells land it has bought, the price is bound to be higher, so the variation does not show the deeds were not genuine. (¶¶ 6, 7)
- As the reliable exemplars concerned smaller plots, a deduction was needed for size and development, but since the land was for an LPG plant requiring less development than a housing scheme, a 35% deduction from the price in Ex. P4 gave just compensation of Rs 12,16,800 per acre. (¶ 8)
Result
Appeals partly allowed; compensation enhanced to Rs 12,16,800 per acre with all statutory benefits and interest under the Land Acquisition Act, 1894; no order as to costs.