Lawtext - Where Words Transform into Power!

Supreme Court

"Supreme Court Upholds Landowners' Right to Fair Compensation in Tauru Land Acquisition Case" "Restoration of compensation granted by Reference Court; Supreme Court reaffirms equitable evaluation for land acquisition."

by Admin

Summary of Judgement

The Supreme Court of India, allowed appeals filed by expropriated landowners. The landowners challenged the Punjab and Haryana High Court's reduction of compensation for acquired lands. The Supreme Court set aside the High Court's judgment and restored the enhanced compensation initially awarded by the Reference Court. The apex court emphasized the potentiality of the land and ruled that the market value must be fairly assessed, even when considering smaller sale exemplars, while applying appropriate development deductions.

1. Case Overview

Appeals: Multiple civil appeals were filed by landowners challenging the High Court's reduction in compensation for acquired lands.

Appellants: Landowners from Tauru village, Mewat District, Haryana.

Respondents: State of Haryana and other concerned authorities.

Main Issue: Just and fair compensation for land acquired under the Land Acquisition Act, 1894.

2. Notification and Land Acquisition Process

Notification Issued: Land acquisition began with a notification under Section 4 of the Land Acquisition Act, 1894, issued on 11th February 2011 for 302.75 acres of land.

Purpose: The land was acquired for residential and utility area development under the Haryana Urban Development Authority Act, 1977.

3. Initial Award by Land Acquisition Collector (LAC)

Award Date: 22nd October 2013.

Compensation by LAC: ₹45,00,000 per acre with additional benefits (solatium, etc.). Increased rates for certain abutting lands.

4. Reference Court Enhancement

Reference Court: Enhanced compensation to ₹92,62,500 per acre based on sale exemplars (Ex. P76) and other factors.

5. High Court Reversal

High Court Judgment (23.08.2022): Set aside Reference Court’s decision, restored LAC's award, questioning the relevance of certain sale exemplars, especially Ex. P76.

6. Appellants’ Contentions

Strategic Location: Close proximity to major highways, Gurgaon NCR, Bhiwadi Industrial Township, and amenities like schools and hospitals, reflecting higher land potential.

Sale Exemplars: Appellants relied on Ex. P76 and Ex. P3, arguing these should determine the market value.

7. Respondents’ Contentions

Opposition to Ex. P76: The State argued that Ex. P76 was post-notification and involved commercial land, thus irrelevant for determining the agricultural land’s market value.

Legal Discussions (Acts & Sections):

Land Acquisition Act, 1894 – Primary statute governing land acquisition, specifically:

Section 4: Notification of land acquisition.

Section 6: Declaration of acquisition.

Section 23: Compensation based on market value at the time of Section 4 notification.

Reference Court Authority: Enhanced compensation was in line with fair market value considerations, emphasizing potentiality and strategic location.

Relevant Precedents:

Dollar Co. v. Collector of Madras (1975) – Recent sales as best evidence for valuation.

Special Land Acquisition Officer v. M.K. Rafiq Saheb (2011) – Applicability of smaller sales with developmental deductions.

Mehrawal Khewaji Trust v. State of Punjab (2012) – Highest bona fide exemplar sets the compensation benchmark.

Ratio:

The Supreme Court held that compensation should reflect the full potential of the land at the time of acquisition. It underscored the principle that even smaller sale exemplars could be considered, provided deductions for development are applied. The Reference Court's reliance on the higher valuation was deemed justified, and the High Court erred in discounting the enhanced compensation based on inappropriate comparables.

Subjects:

Land Acquisition, Fair Compensation, Market Value Evaluation, Expropriated Landowners’ Rights.

Reference Court, Haryana, Mewat, Tauru Village, Landowners’ Rights, Development Deduction

The Judgement

Case Title: Horrmal (Deceased) through his LRs and others Versus State of Haryana and others

Citation: 2024 LawText (SC) (10) 214

Case Number: Civil Appeal No. _______ /2024 (Arising out of SLP (C) Nos. 15090-15091 / 2023) With Civil Appeal No. ______ /2024 (Arising out of SLP (C) No. 15089 / 2023) Civil Appeal No. ___________/2024 (Arising out of SLP (C) No. 9187-9191/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 7111-7114/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 9185-9186/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 15082-15088/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 7115-7121/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 10896-10905/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 15081/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 11052/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 9184/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 9176-9182/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 9183/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 4876/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 16148/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 15095/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 15093-15094/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 19163/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 19127/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 16147/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 19126/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 17847/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 12218-12219/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 19996/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 20619/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 16146/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 19130/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 19995/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 16142-16145/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 9714-9715/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 15079-15080/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 9454/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 16149/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 16141/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. …/2024-Diary No.31546/2023) Civil Appeal No. _______ /2024 (Arising out of SLP(C) No. …./2024-Diary No(s). 31567/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 20560/2023) Civil Appeal No. _______ /2024 (Arising out of SLP(C) No. …./2024-Diary No(s). 38885/2023) Civil Appeal No. _______ /2024 (Arising out of SLP(C) No. …./2024-Diary No(s). 48155/2023) Civil Appeal No. _______ /2024 (Arising out of SLP(C) No. …./2024-Diary No(s). 52730/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 21685-21686/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 23820-23821/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 19128-19129/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 22476-22477/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1066-1067/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1070-1071/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 6711/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 19125/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1068-1069/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 617-618/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 46-52/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 24189-24190/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 608/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 24109-24110/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 612-613/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 24167-24168/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1712/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 21832-21833/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 23874-23875/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 4936-4942/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 5169-5172/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 24024-24046/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 23835-23864/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 23868-23871/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 2584-2585/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 615-616/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 23659-23662/2022) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 4548-4549/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 4547/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 3130-3131/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1984-1985/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1974-1975/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 4944/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1991-1992/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 3163-3164/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 2578-2579/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 3155-3156/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 4546/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1977-1978/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 3136-3142/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1710-1711/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 5594-5595/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1968-1969/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 2586-2587/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1979-1980/2023) Civil Appeal No. _______ /2024 (Arising out of SLP (C) No. 1981-1982/2023) Civil Appeal No. _______ /2024 (Arising out of SLP(C) No. 2581/2023)

Date of Decision: 2024-10-21