High Court Punjab-Haryana High Court

Gulab Singh vs State Of Haryana & Another on 24 July, 2008

Punjab-Haryana High Court
Gulab Singh vs State Of Haryana & Another on 24 July, 2008
R.F.A.No.19 of 1995                              :1 :

     IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                   CHANDIGARH

                      Regular First Appeal No.19 of 1995
                      Date of Decision: July 24, 2008



Gulab Singh
                                                 ...Appellant
                      VERSUS


State of Haryana & another

                                                 ...Respondents


CORAM: HON'BLE MR.JUSTICE RANJIT SINGH


1. Whether Reporters of local papers may be allowed to see the
   judgment?
2. To be referred to the Reporters or not?
3. Whether the judgment should be reported in the Digest?


Present:   Mr.Harkesh Manuja, Advocate,
           for the appellant.

           Mr.H.S.Hooda, Advocate General, Haryana with
           Mr.Yashwinder Singh, AAG, Haryana,
           for the respondents-State.
                 *****

RANJIT SINGH, J.

This order will dispose of Regular First Appeal Nos.3415

of 1993, 81 and 2932 of 1994, 19 to 32, 69 to 75, 116, 180, 181,

201, 221, 271, 307, 308 to 313, 390, 1577, 1705 to 1740, 1809,

2421 of 1995 and 1880 of 1996 as all these appeals arise out of the

common award. The facts are being taken from RFA No.19 of 1995.

Haryana Government issued notification No.LAC(P)/

NTLA-90/3446 dated 23.10.1989 under Section 4 of the Land
R.F.A.No.19 of 1995 :2 :

Acquisition Act, 1984 (hereinafter referred to as the “Act”). Through

this notification, land of the appellants was sought to be acquired.

Notification under Section 6 of the Act was issued on 22.10.1990.

The land sought to be acquired fell in revenue estate of Village Taraf

Afgan and Village Sarain Pilkhan, District Panipat and was for the

public purpose of development and utilisation of the land as

industrial, commercial and transport area in Sector 25, Part-II,

Panipat. Though the notification pertained to area measuring 171.68

acres in village Taraf Afgan and 26.22 acres in Sarain Pilkhan, thus,

making a total of 197.92 acres, but the present appeals pertain to an

area of 143.35 acres, there being stay order pertaining to 53.90

acres of the remaining land sought to be acquired as per the

notification.

While pronouncing his award, the Land Acquisition

Collector classified the land as plain and low lying. Even low lying

area was further sub-classified into three classes, described as A, B

& C. These areas were divided depending upon depression of 2 feet,

3 feet and 8 feet. The Land Acquisition Collector, after taking into

account various relevant considerations, assessed the market value

of a plain land at Rs.2 lacs per acre and for three different low lying

areas in categories A, B and C at the rate of Rs.1,65,000/-per acre,

Rs.1,48,000/- per acre and Rs.60,800/- per acre, respectively. Being

not satisfied with the rates so awarded, land owners preferred

reference petitions seeking enhancement of the market price as

assessed pleading that various industrial concerns and commercial

establishments had come up in the land acquired. It was pleaded that
R.F.A.No.19 of 1995 :3 :

the value of the land as assessed was highly low. It was accordingly

pleaded that the price of the acquired land would not be less than

Rs.500/- per square yard at any rate. In addition, it was pleaded that

earlier also the land from village Taraf Afgan was acquired vide

award No.14 and 15 dated 14.2.1979. This was in pursuance of the

notification dated 30.8.1977. Against the award given by the Land

Acquisition Collector, the land owners had filed references before the

Addl.District Judge, in regard to said acquisition and he has given

his award on 11.3.1985 awarding compensation at the rate of Rs.25/-

per square yard. The land owners in the said case had then

approached to this court against the decision of Addl.District Judge

and compensation was enhanced to Rs.39-20P as on 30.8.1977.

Thus, the increase of 12% per annum was prayed for in order to

determine the market value of the acquired land. Addl.District Judge,

however, by taking into consideration the compensation assessed in

respect of notification dated 15.12.1982, assessed the value of the

land at Rs.81/-.

The State of Haryana contested the references and filed

written reply to each of the petition. It is stated that the Land

Acquisition Collector, after perusing the genuine registered sale

deeds, had awarded fair and adequate compensation and there was

no justification to enhance the compensation as pleaded by the land

owners.

The Addl.District Judge, Panipat accordingly framed

various issues and went into the references and ultimately held that

the appellants would be entitled to compensation at the rate of
R.F.A.No.19 of 1995 :4 :

Rs.81/- per square yard for their acquired land, besides additional

compensation of 6% per annum from 30.8.1977 to 14.12.1982, in

addition to solatium and additional amount at the rate of 12% per

annum on the market value under Section 23(1-A) of the Act. The

appellants were also held entitled to interest at the rate of 9% per

annum for the first year from the date of the award on the enhanced

amount of compensation and at the rate of 15% per annum for

subsequent period till the date of realisation of amount, in the light of

the amended provisions of Section 28 of the Act. Still feeling

dissatisfied with the compensation awarded, the appellants have filed

the present Regular First Appeals seeking further enhancement of

the compensation as assessed by the Addl.District Judge, Panipat.

Learned counsel for the appellants would mainly contend

that while assessing the rate of land acquired to be Rs.81/- per

square yard, the main reliance has been placed on the rate as

assessed by the court in earlier acquisition in the vicinity of the area

of the land acquired. It is pointed out that the area in the same

village, i.e., Taraf Afgan was acquired through notification dated

15.12.1982, where the compensation as assessed by the

Addl.District Judge, Panipat was determined as Rs.44/- per square

yard, which has been taken as a base. 12% per year increase has

been granted on this rate and thus rate as determined in the present

acquisition has been assessed at Rs.81/- per square yard. The

prayer made is very simple and straight-forward. The counsel would

point out that sum of Rs.44/- per square yard, as assessed by

Addl.District Judge, Panipat pursuant to the notification issued on
R.F.A.No.19 of 1995 :5 :

15.12.1982, was challenged before this court through Regular First

Appeal and the court had enhanced the said compensation to

Rs.72/- per square yard. The judgment of the learned Single Judge in

this regard titled Rabinder Nath Kataiya and another Vs. Haryana

State Through Collector, Karnal, (1996-1) Punjab Law Reporter 648

is so referred. Against the said decision of the Single Judge of this

court, a Letters Patent Appeal was also filed and the rate of land

acquired pursuant to the said notification dated 15.12.1982 was

further enhanced to Rs.80/- per squire yard. This judgment is

reported as Jogi Ram and others Vs. State of Haryana and another,

(1997-2) Punjab Law Reporter 303. It is accordingly prayed that the

base which was taken as Rs.44/- per square yard while assessing

the market value of the land now acquired is required to be taken as

Rs.80/- per square yard and thereafter increase at the rate of 12%

per year from the date of notification, i.e., 15.12.1982 should be

assessed to arrive at the proper rate of compensation. The grievance

is also made in regard to the action of the court in awarding

additional compensation of 6% per annum from the date when the

land remained under threat of acquisition from the earlier notification

issued on 30.8.1977 to 14.12.1982. Plea is that the damage under

Section 48 of the Act for this should also be assessed at the rate of

12% per annum and there is no justification for awarding additional

compensation of 6% per annum for this period. In addition, it is also

submitted that additional sum at the rate of 12% per annum should

further be awarded from the year 1982 to year 1989 as an interest for

the loss suffered by the appellants.

R.F.A.No.19 of 1995 :6 :

Mr.H.S.Hooda, Learned Advocate General appearing for

the State of Haryana would seriously contest the right of the

appellants to claim interest in addition to the other claims made by

them. He would say with justification that the appellants cannot have

the advantage of having enhanced rate vis-a-vis earlier acquisition

and still ask for interest on the ground that the land had been kept

under threat of acquisition. The learned Advocate General had also

disputed the claim made by the appellants seeking 12% interest in

addition to the compensation from 1977 to 1982 by invoking the

provisions of Section 48 of the Act. He would say that the 6% per

annum awarded as additional amount would suffice in this regard.

The learned Advocate General would also submit that the

compensation as assessed by Addl.District Judge, Panipat is fair and

reasonable and would not call for any enhancement.

I have considered the rival submissions made before me

by the learned counsel representing the respective appellants and

the State.

It is not disputed before me that market value of the land

in this case has been assessed on the basis of the earlier award

announced as the land situated is almost similar in these two

revenue estates. It is also noticed that most of the land, now

acquired through this notification, was originally notified for

acquisition under Section 4 on 30.8.1977 and in this case the

compensation was assessed Rs.39/- per square yard by the High

Court. The land situated in the revenue estate of Taraf Afgan was

assessed at Rs.42/- per square yard as on 30.8.1977. It is
R.F.A.No.19 of 1995 :7 :

accordingly pleaded before the Addl.District Judge to determine the

market value of the land so acquired pursuant to the present

notification dated 23.10.1989 by allowing 12% over the market value

so assessed. For this purpose, reference was also made to number

of judgments before the court. This fact is not seriously disputed that

the appellants should be entitled to increase of 12% per annum on

the market value as determined by earlier judicial pronouncements

with respect to the land which was sought to be acquired or was

acquired through the same notification. It can, thus, be said that the

land presently acquired is comparable to the land which was earlier

acquired through notifications and the rate of which was assessed at

Rs.42/- per square yard as on 30.8.1977 or Rs.44/- as determined

with respect to notification dated 15.12.1982. Having so stated, the

Addl.District Judge took Rs.44/- per square yard as the base price.

This was the price determined in respect of notification dated

15.12.1982. Thereafter, an increase of 12% per annum was allowed

for a period of seven years and accordingly the price of the land

acquired was assessed at Rs.81/- per square yard. The counsel for

the appellants would now only want this enhanced price of the land

acquired through notification dated 15.12.1982 at the rate of Rs.80/-

per square yard to be taken as a base on the date of notification

dated 15.12.1982 and for assessment of the market price of the land

by giving increase of 12% per annum over this price as determined.

There is good and valid justification in the plea made by the counsel

for the appellants. The approach adopted by the Addl.District Judge,

Panipat to take the price of Rs.44/- per square yard, which was price
R.F.A.No.19 of 1995 :8 :

determined of the land acquired through notification dated

15.12.1982, is a fair one and the appellants now want this court to

take the enhanced price of the land acquired through this notification

into consideration while assessing the value of the land acquired

through the present notification dated 23.10.1989. This plea made by

the counsel for the appellants is well founded and merit acceptance.

It is not disputed before me that the land, which is situated in the

same revenue estates and acquired through notification dated

15.12.1982, was assessed at the rate of Rs.80/- per square yard,

besides the entitlement of grant of all statutory benefits of the

amended provisions of Sections 23(1-A) 23(2) and 28 of the Act as

per Jogi Ram’s case (supra). It would, thus, be fair to take this as the

base price for determining the market price of the land acquired

through the present notification. Taking this as the base price as on

15.12.1982, the market price of the land acquired would work out to

be Rs.147.20 by giving increase of 12% per annum on Rs.80/- which

was the price assessed of the land in terms of notification dated

15.12.1982. This will stand rounded off to Rs.147/- per square yard. I

also see justification in the submission made by the counsel for the

appellants that they are entitled to the damage at the rate of 12% per

annum from the year 1977 to 1982 as the present land remained

under threat of acquisition through a notification, but was not

subsequently acquired till the year 1989. The Addl.District Judge,

Panipat has allowed additional compensation at the rate of 6% per

annum for this period. The counsel for the appellants would draw my

attention to the ratio of law laid down in Smt.Bharpai Vs. State of
R.F.A.No.19 of 1995 :9 :

Haryana, (1999-2) Punjab Law Reporter 721 to say that a

compensation at the rate of 12% under Section 48 instead of 6% was

allowed by this court under similar circumstances. The relevant

observations of this court in this regard are as under:-

“I am unable to reconcile myself with the view taken by

the learned Additional District in awarding 6%

compensation in face of compensation of 12% as

stipulated under the Act. The learned Additional District

(Judge) ought to have applied the principle as such

stipulated in the statute itself. There is no dispute before

me that notification under Section 4 of the Act was issued

between 30th August, 1977 and 14th December, 1982.

Section 23(1-A) was inserted by an amendment Act 68 of

1984. In other words the statute stood amended much

prior to the pronouncement of the judgment and even

adjudication of right of the parties by the learned

Additional District Judge.

Thus, I have no hesitation in holding that in addition

to the relief granted by the Letters Patent Appeal in

regard to the enhancement of compensation payable for

the acquired land, the present appellants-applicants

would also be entitled to compensation at the rate of 12%

under Section 48 read with Section 23(1-A) of the Act,

instead of 6%, as allowed by the Ld.Judge in the

impugned judgment.”

The appellants,thus, have made out a case for grant of
R.F.A.No.19 of 1995 : 10 :

compensation at the rate of 12% under Section 48 read with Section

23(1-A) of the Act, instead of 6% as allowed by Addl.District Judge. It

would be pertinent to notice that Smt.Bharpai’s case (supra) is

concerning the same area acquired through earlier notifications.

However, I am not impressed with the submission made by the

counsel for the appellants that they would be entitled to an additional

sum at the rate of Rs.12% as interest from the year 1982 to 1989.

While assessing the value of the land acquired, the rate as

determined in the year 1982 and awarded in respect of similarly

situated land has been taken as a base. The rate as assessed in the

year 1989 has been arrived at by giving increase of 12% per annum

over this rate. The appellants would get double benefit in case

interest is awarded to them. No case for award under this head, as

such, is made out and the prayer made in this regard is declined.

In the result, the appeals filed by the appellants are

allowed to the extent that they are held entitled to compensation of

their acquired land at the rate of Rs.147/- per square yard. They are

further held entitled to grant of all statutory benefits of the amended

provisions under Section 23(1-A) 23(2) and 28 of the Act. In addition,

the appellants are also held entitled to additional compensation of

12% per annum from 30.8.1977 to 14.12.1982. The appeals filed by

the State would stand dismissed.

July 24, 2008                            ( RANJIT SINGH )
ramesh                                         JUDGE
 R.F.A.No.19 of 1995   : 11 :