This order disposed of revisional appeals and cross-objections regarding land acquisition compensation. The court held the below court's award of ` 7,00,000 per acre was reasonable and dismissed both petitions, noting the land was for a Link Channel construction.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
RFA No. 2708 of 2008 (1)
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
RFA No. 2708 of 2008 (O&M) Date of decision : 21.3.2011
State of Haryana
...Appellant
vs
Smt. Khazani
...Respondent
Coram : Hon'ble Mr. Justice Rajesh Bindal
Present: Mr. D. D. Gupta, Additional Advocate General, Haryana.
Mr. Ashok Kaushik, Advocate, and Mr. Ram Kumar Saini, Advocate for Mr. R. N. Lohan, Advocate, for the landowners.
Rajesh Bindal, J.
This order shall dispose of RFA Nos. 2708 to 2734 and 5001 of 2008 and Cross-Objection Nos. 8/CI to 18/CI, 27/CI, 37/CI, 43/CI, 106/CI of 2009 and 67/CI of 2011, as the same arise out of common acquisition.
By filing appeals, State of Haryana is seeking reduction of compensation awarded to the landowners for the acquired land whereas by filing cross-objections, the landowners are seeking further enhancement.
Briefly, the facts of the case are that the State of Haryana vide notification dated 22.2.2005 issued under Section 4 of the Land Acquisition Act, 1894 (for short, 'the Act') sought to acquire land measuring 18.96 acres situated within the revenue estate of Village Danoda Khurd, Tehsil Narwana, District Jind, for construction of Link Channel New Sacha Khera Minor. Notification under Section 6 of the Act was issued on 17.3.2005. The Land Acquisition Collector (for short, 'the Collector') vide award dated 18.10.2005 assessed the market value of the acquired land @ 5,00,000/per acre. Dissatisfied with the award of the Collector, the landowners filed objections. On reference, the learned court below determined the market value of the acquired land @ 7,00,000/- per acre. Aggrieved against the award of learned Court below, both the parties are before this Court.
RFA No. 2708 of 2008 (2)
Learned counsel for the landowners submitted that the learned court below has totally ignored the potentiality of the land acquired. Sirsa Branch Canal is adjacent to the village Danoda Khurd. The value of the land in the area was more than ` 20,00,000/- per acre but the learned court below has awarded compensation at a very low rate. The submission is for enhancement of compensation keeping in view the potentiality of the land.
On the other hand, learned counsel for the State submitted that the learned court below without there being any evidence showing the value of the land, had assessed the amount of compensation @ 7,00,000/- per acre. No reason has been assigned while determining the amount of compensation. It had merely applied thumb rule for assessment of compensation. It is due to the policy of the State Government that the value of the land was determined @ 5,00,000/- per acre by the Collector, otherwise the value of the land in the area was not as has been awarded by the learned court below. The prayer was for restoration of award of the Collector.
Heard learned counsel parties and perused the relevant referred record.
A perusal of the impugned award shows that the landowners have produced only oral evidence to show the value of the acquired land. No documentary evidence in the form of sale instances in the area has been brought on record by them which could justify any further increase.
It is not disputed that the State of Haryana had issued policies from time to time whereby the minimum rates of the land were fixed in the State. The policy dated 28.4.2005, provides that all the landowners in whose cases the award of the Collector was passed on or after 5.3.2005 irrespective of date of notification under Section 4 of the Act, shall be entitled to minimum compensation @ ` 5,00,000/- per acre. The relevant extract of the aforesaid policy is as under:-
“Subject:- Fixation of floor rates for acquisition of land for public purpose in the State of Haryana.
Sir,
I am directed to refer to the subject cited and to state that
RFA No. 2708 of 2008 (3)
the State Government has been acquiring land for public purposes for various departments as well as other State Agencies. Under the present system compensation is paid to the land owners based on the rate fixed by the Committee constituted under the Chairmanship of Divisional Commissioner vide this department letter No. 3670-R-595/8943, dated 20.6.1995. This Committee had been recommending rates based on the quality, category and location of the land under acquisition.
RFA No. 2708 of 2008 (4)
Chandigarh forming part of Haryana State. iii) Rest of the State outside Haryana sub-region of NCR.
The State of Haryana, thereafter issued letter dated 25.5.2005 clarifying about applicability of the aforesaid instructions/ policy dated 28.4.2005 with regard to fixation of floor price of acquired land for public purposes in the State. The relevant extract thereof is as under:-
“After a careful and detailed consideration, it has been decided that no award for acquisition of land to be announced on/ after 5th March 2005 shall be on rates lower than the floor rates, communicated to you vide this department letter dated 28-4-2005. The other provisions of the communication dated
RFA No. 2708 of 2008 (5)
28-4-05 will remained unchanged.”
As per the aforesaid policy dated 28.4.2005, minimum rates in the area in question would be @ ` 5,00,000/- per acre. These rates are applicable to all those acquisitions where awards have been announced on or after 5.3.2005 irrespective of date of notification under Section 4 of the Act.
The policy dated 28.4.2005 was revised on 6.4.2007. The relevant extract of policy, dated 6.4.2007, is as under:-
Ref: This Department Memo No. 2025-R-5-2005/4299, dated 28.4.2005.
Vide this Department Memo. under reference, minimum floor rates for acquiring land for public purposes for various Departments as well as other State Agencies were fixed by the Haryana Government as follows:
i) Minimum floor rate for urbanisable area Rs. 15.00 lacs per acre of Gurgaon.
ii) Minimum floor rate for rest of the Rs.12.50 lacs per acre. Haryana Sub-Region of NCR including Panchkula and area of Chandigarh periphery in the Haryana State.
iii) Minimum floor rate for the rest of the Rs. 05.00 lacs per acre. Haryana State.
(These floor rates did not include the solatium and interest payable under the provisions of the Land Acquisition Act, 1894).
RFA No. 2708 of 2008 (6)
i) Minimum floor rate for urbanisable area Rs. 20.00 lacs per acre of Gurgaon.
ii) Minimum floor rate for rest of the Rs.16.00 lacs per acre. Haryana Sub-Region of NCR including Panchkula and area of Chandigarh periphery in the Haryana State.
iii) Minimum floor rate for the rest of the Rs. 08.00 lacs per acre. Haryana State.
The policy dated 6.4.2007, shows that the minimum floor rates for the rest of the Haryana State were revised and the rates are applicable on all those acquisitions where awards have been announced on or after 22.3.2007 irrespective of date of notification under Section 4 of the Act.
In the present case, the award was announced by the Collector on 18.10.2005 whereas as per aforesaid policies dated 28.4.2005 and 6.4.2007, the dates of applicability are 5.3.2005 and 22.3.2007, respectively. The State of Haryana itself had increased the value of the land from the year 2005 to 2007 by 60% in the area in question i.e. from 5,00,000/- to 8,00,000/- per acre. A perusal of the aforesaid policies shows that after a gap of nearly two years, the minimum compensation payable for acquisition of land was enhanced @ 30% per annum or the price as shown in 2005 is 37.5% less than the price shown in the year 2007. This is evident from rising prices of land on which there is lot of pressure in recent times because of demand for urbanization and other infrastructural facilities. The process to frame or revise a policy starts in advance and finalisation thereof takes time. The aforesaid policy letters, in my opinion, can be considered as a piece of evidence showing the value of the land, considering the fact that the award in the present case was announced in October 2005, either a reasonable increase can be given or a reasonable cut can be applied.
RFA No. 2708 of 2008 (7)
Accordingly, as per the aforesaid policies, the value of the acquired land determined @ ` 7,00,000/- per acre cannot be faulted with. Even otherwise, the acquisition in the present case was for the purpose of construction of Link Channel New Sacha Khera Minor. The landowners have not been awarded any amount on account of severance though their land has been divided into two parts.
Accordingly, the appeals and the cross-objections are
dismissed.
21.3.2012 vs.
(Rajesh Bindal) Judge
2 issues framed by the court
Whether the court below's award of compensation at ` 7,00,000/- per acre was faulted in light of State policies and market rates.
Whether the appeals by the State and cross-objections by landowners for alteration of compensation should be allowed.
2 provisions across 1 enactments
State of Haryana
Smt. Khazani
Rajesh Bindal
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
