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Supreme Court of India

ASHOK KUMAR & ANR. ETC.versusSTATE OF HARYANA

Citation
2016 INSC 190
Decided
18 February 2016
Disposal
Disposed off

Holding

Post‑amendment, the court is not restricted by the claimant’s stated amount and must award just and fair compensation based on market value, which in this case is Rs.200 per square yard.

Summary

The State of Haryana acquired 46.93 acres of land in Village Fatehpur for residential and commercial development. The appellants claimed compensation of Rs.125 per square yard, arguing that similar adjoining properties had been awarded Rs.250 per square yard. The Court examined Section 25 of the Land Acquisition Act, 1894, noting that the pre‑1984 provision capped compensation at the amount claimed, whereas the 1984 amendment removed the maximum cap and only set a minimum floor. Consequently, the Court held that it may award compensation higher than the claimant’s stated amount, based on true market value and relevant factors. Considering that the appellants' land was 375 yards from the national highway and accessed only by a narrow road, the Court fixed a just and fair compensation of Rs.200 per square yard, higher than the claim but lower than the adjoining village rate.

Issues considered

  • Whether, after the 1984 amendment to Section 25 of the Land Acquisition Act, 1894, a court is bound by the amount of compensation claimed by the landowner.
  • What amount of compensation constitutes 'just and fair' compensation for land situated away from a national highway.

Legislation cited

Subjects

Land acquisitionCompensationSection 25Amendment 1984Market valueJust and fair compensationValuationHighway proximity

Judgment

                             (2016) l S.C.R. 1084



A                     ASHOK KUMAR & ANR. ETC.
                                       v.
                           STATE OF HARYANA
                    (Civil Appeal Nos. 2714-2721 OF2012)
B                           FEBRUARY 18, 2016
                [KURIAN JOSEPH AND ROHINTON FALi
                                NARIMAN, J.J.]
            Land Acquisition Act, 1894 - s.25 (as amended) - Amount of
     compensation awarded by the Court - Held: There is no restriction
c    that compensation should be awarded only upto amount claimed by
     the applicant - ( 'ourt is to award just and fair compensation taking
     into consideration the true market value and other relevant factors,
     irrespective of the claim made by the owner - On facts, the properties
     of 1he appellant do not abut the national highway but there is only
D    a narrow road connecting the properties of the appellants to the
     national highwav -- It would not be just and proper to award land
     i·a1ue of Rs.2501- per square yard. which is granted to the property
     in adjoining ril/age - Compensation of Rs. 2001- per square yard
     would _be just a!ld fair.
           Disposing of the appeals, the Court
E
          HELD: The pre-amended provision of s. 25 of the Land
  Acquisition Act, 1894 put a cap on the maximum; the
  compensation by court should not be beyond the amount claimed.
  The amendment in 1984, on the contrary, put a cap on the
  minimum; compensation cannot be less that what was awarded
F
  by the Land Acquisition Collector. The cap on maximum having
  been expressly omitted, and the cap that is put is only on minimum,
  it is clear that the amount of compensation that a court can award
  is no longer restricted to the amount claimed by the applicant. It
  is the duty of the Courtto award just and fair compensation taking
G into consideratio11 the true market value and other relevant
  factors, irrespective of the claim made by the owner. In the instant
  case, the properties of the appellant do not abut the national
  highway. It is situated about 375 yards away from the national
  highway and it appears that there is only a narrow road connecting
  the properties of the appellants to the national highway. Therefore,
fl
                                      1084
    ASHOK KUMAR & ANR. ETC. v. STATE OF HARYANA                         1085


it would not be just and proper to award land value of Rs.250/-         A
per square yard, which is granted to the property in adjoining
village. Having regard to the factual and legal position the just
and fair compensation in the case of appellants would be Rs. 200/
- per square yard. [Paras 7, 12][1087~D-E; 1089-E-F]
     Sanjay Batham v. Munna Lal Parihar (2010) 11 SCC                   B
     665; Bhag Singh and Ors. v. Union Territory of
     Chandigarh (1985) 3 SCC 737: 1985 (2) Suppl. SCR
     949; Krishi Utpadan Mandi Samiti v. Kanhaiya Lal
     (2000) 7 SCC 756: 2000 (3) Suppl. SCR 531 Bhimasha
     v. Special Land Acquisition Officer and Ors. (2008) 10
     sec 797 - referred to.                                             c
                      Case Law Reference
c2010) .11 sec 665             referred to ..          Para 8
1985 (2) Suppl. SCR 949        referred to.            Para9
                                                                        D
2000 (3) Suppl. SCR 531        referred to.            Para 10
c2008) 1o sec 797              referred to.            Para 11
     CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2714-
2721OF2012
      From the Judgment and Order dated 30.10.2008 in RFA Nos.           E
235811993, 2359/1993, 2360/1993, 2361II993, 2362/1993, 236311993,
2364/1994, and 2365/1993 passed by the High Court of Punjab & Haryana
at Chandigarh.
       Shailendra Jain, Manoj Swarup, Siddharth S., Neha Kedia,
Prerna Mann, Karanvir Singh Khehar, Ajay Kumar, Madhu                    F
Moolchandan i for the Appellants.
       Sanjay Kumar Tyagi, Haryana, Prabhat Kr. R., Sanjay Kr. Visen
for the Respondents.
      The Judgment of the Court was delivered by                         G
       KURIAN, J. Leave granted in Special Leave Petition (Civil)
 No. 12495 of2015.
       2. Around 46.93 acres of Land was acquired by the respondent-
 State ofHaryana initiating the proceedings by Notification dated
                                                                         H
1086                   SUPREME COURT REPORTS                     [2016] I S.C.R.


 A     19.09.1983 issued under Section 4 of the Land Acquisition Act, 1894.
       The purpose of acquisition is residential and commercial for Panchkula,
       Sector-21. The acquired property is in Village Fatehpur. In respect of
       the same development, we have seen that this court in many cases has
       based the fixation of the land value based on acquisition proceedings
 B     initiated in 1981 in Village Judian. Those properties in village Judian had
       access to State Highway and the value fixed by this Court is Rs. 250/-
       per square yard. In respect of properties situated i11 the adjoining village
       of the appellants namely, Devi Nagar, we have fixed land value at the
       rate of Rs. 250/- per square yard that was the acquisition initiated in the
       year 1987 and that property had extensive national highway frontage.
 c            3. Learned counsel for the appellants submitted that in all the
       adjoining villages for the properties acquired for the same purpose, this
       court having fixed the land value at Rs. 250/- per square yard and above,
       the appellants may also be granted the same value.
              4. Shri Sanjay KumarTyagi, learned Additional Advocate General
 D for the respondent- State of Haryana however points out that even
       according to the appellants, their claim was only Rs.125/- per square
       yard and in any case the land of the appellants does not have the same
       advantage when compared to other properties for which this court had
       fixed the land value at Rs.250/- per square yard and above.
 E            5. Learned counsel appearing for the appellants however points
       out that in the matter of fixation ofjust and fair compensation, the Court
       is not bound by claim made by the owner. It is for the Court, in the facts
       and circumstances of each case, to award just and fair compensation.
              6. Prior to amendment Act 68 of 1984, the amount of compensation
 F     that could be awarded by the Court was Iimited to the amount claimed
       by the applicant. Section 25 read as under -
              "Section 25. Rules as to amount of compensation -
              (1) When the applicant has made a claim to compensation, pursuant
 G            to any notice given under Section 9, the amount awarded to him
              by the court shall not exceed the amount so claimed or be less
              than the amount awarded by the Collector under Section 11.
              (2) When the applicant has refused to make such claim or has
              omitted without sufficient reason (to be allowed by the Judge) to
              make such claim, the amount awarded by the court shall in no
 H
    ASHOK KUMAR & ANR. ETC. v. STATE OF HARYANA                                1087
                   [KURIAN, J.]

      case exceed the amount awarded by the Collector.                         A
      (3) When the applicant has omitted for a sufficient reason (to be
      allowed by the Judge) to make such claim, the amount awarded
      to him by the court shall not be less than, and may exceed, the
      amount awarded by the Collector."
      The amended Section 25 reads as under:                                   B

      "Section 25. Amount of compensation awarded by Court
      not to be lower than the amount awarded by the Collector-
      The amount of compensation awarded by the Court shall not be
      less than the amount awarded by the Collector under Section 11."
                                                                               c
      The amendment has come into effect on 24.09.1984.
       7. The pre-amended provision put a cap on the maximum; the
compensation by court should not be beyond the amount claimed. The
amendment in 1984, on the contrary, put a cap on the minimum;
compensation cannot be less that what was awarded by the Land                  D
Acquisition Collector. The cap on maximum having been expressly
omitted, and the cap that is put is only on minimum, it is clear that the
amount of compensation that a court can award is no longer restricted
to the amount claimed by the applicant. It is the duty of the Court to
award just and fair compensation taking into consideration the true market
value and other relevant factors, irrespective of the claim made by the        E
owner.
      8. Although in the context of the Motor Vehicles Act, 1988, this
Court in San jay Batham v. Munna Lal Parihar' held that -
      "17. It is true that in the petition filed by him under Section 166 of
                                                                               F
      the Act, theAppella11t had cl:iimed compensation of Rs. 4,20,000/
      - only, but as held in Nagappa v. Gurudayal Singh, (2003) 2 SCC
      274, in the absence ofany bar in the Act, the Tribunal and for that
      reason any competent Court is entitled to award higher
      compensation to the victim of an accident."
    · 9. In Bhag Singh and Others v. Union Territory of                        G
Chandigarh', this Court held that there may be situations where the


'(2010) JI SCC665
'(1985)3 sec 737                                                               H
1088                  SUPREME COURT REPORTS                     [2016] I S.C.R.


 A     amount higher than claimed may be awarded to the claimant. The Court
       observed -
             "3 ...• It must be remembered that this was not a dispute between
             two private citizens where it would be quite just and legitimate to
             confine the claimant to the claim made by him and not to award
 B           him any higher amount than that claimed though even in such a
             case there may be situations where an amount higher than that
             claimed can be awarded to the claimant as for instance where an
             amount is claimed as due at the foot of an account. Here was a
             claim made by the appellants against the State Government for
             compensation for acquisition of their land and under the law. the
 c           State was bound to pay to the appellants compensation on the
             basis of the market value of the land acquired and if according to
             the judgments of the learned single Judge and the Division Bench,
             the market value of the land acquired was higherthan that awarded
             by the Land Acquisition Collectororthe Additional District Judge,
 D           there is no reason why the appellants should have been denied
             the benefit of payment of the market value so determined. To
             deny this benefit to the appellants would tantamount to permitting
             the State Government to acquire the land of the appellants on
             payment of less than the true market value. There may be cases
             where, as for instance, under' agrarian reform legislation, the holder
 E           of land may, legitimately, as a matter of social justice with a view
             to eliminating concentration of land in the hands of a few and
              bringing about its equitable distribution, be deprived ofland which
              is not being personally cultivated by him or which is in excess of
             the ceiling area with payment of little compensation or no
 F.          compensation at all, but where land is acquired under the Land
              Acquisition Act, 1894, it would not be fair and just to deprive the
              holder of his land without payment of the true market value when
              the law, in so many terms, declares that he shall be paid such
              market value .... "
 G             I0. In Krishi Utpadan Mandi Samiti v. Kanhaiya Lal', this
       Court held that under the amended provisions of Section 25 of the Act,
       the Court can grant a higher compensation than claimed by the applicant
       in his pleadings -


 H '(2000J 7 sec 756
    ASHOK KUMAR & ANR. ETC. v. STATE OF HARYANA                                 1089
                   [KURIAN, J.]

       "17. Award being in this case between the dates 30th April, 1982         A
       and 24th September, 1984 and as per the Union oflndia and Anr.
       v. Raghubir Singh (Dead) by LRs. etc. (Supra), the amended
       provisions would be applicable under which there is no restriction
       that award could only be upto the amount claimed by the claimant.
       Hence High Court order granting compensation more than what
                                                                                B
       is claimed cannot be said to be illegal or contrary to the provisions
       of the Act. Hence the review itself, as is confined for the aforesaid
       reasons, has no n1erit."
      11. Further, in Bhimasha v. Special Land Acquisition Officer
and others', a three-Judge bench reiterated the principle in Bhag Singh
(supra) and rejected the contention that a higher compensation than
                                                                                c
claimed by the owner in his pleadings cannot be awarded by the Court.
In that case, the High Court had concluded that although the market
price of the land was Rs 66,550/- per acre, since the appellant had only
claimed compensation at the rate of Rs. 58,500/- per acre in his pleadings,
therefore he could only be awarded compensation limited to his claim.           D
This Court, while reversing the decision of the High Court, awarded the
petitioner the market value, i.e., Rs. 66,550/- per acre thereby holding
t_hat the award would not be limited to the claim made by him.
       12. In the case of the appellants herein, it is an admitted position
that the properties do not abut the national highway. Admittedly, it is         E
situated about 375 yards away from the national highway and it appears
that there is only the narrow Nahan Kothi Road connecting the properties
of the appellants to the national highway. Therefore, it will not be just
and proper to award land value of Rs.250/- per square yard, which is
granted to the property in adjoining village. Having regard to the factual
and legal position obtained above, we are of the considered view that           F
the just and fair compensation in the case of appellants would be Rs.
2001- per square yard.
         13. Tlrerefore, these appeals are disposed off fixing the land value
at Rs. 200/- per square yard and the appellants shall also be entitled to
all the statutory benefits. The amount as above shall be paid and deposited     G
after adjusting the deficit court fee, if any, before the Executing Court
within a period of three months from today.
Nidhi Jain                                                 Appeals disposed.

'(200SJ 10 sec 797


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