UNION OF INDIAversusHARINDER PAL SINGH AND ORS.

                           UNION OF INDIA                                              A
                                 v.
                     HARINDER PAL SINGH AND ORS.

                              OCTOBER 26, 2005

                (ASHOK BHAN AND ALTAMAS KABIR, JJ.)                                    B


     Land Acquisition Act, 1894-Sections 4, 6-Market value of the land-
Determination of-Held, may be determined by taking market value of land
acquired during same period as a comparative unit.
                                                                                       c
      For extension of the Cantonment at Amritsar, five villages comprising
an area 3512.33 acres were acquired. The Collector passed award at different
rates of compensation after classifying the acquired lands into four categories.
Claimants sought ~nhancement of compensation before the District Court who
by following the belting method, enhanced and fixed market value at uniform            D
rate for each belt irrespective of quality of lands.

     The High court abandoned the belting method and held that the lands
comprised in the adjoining village of Kala Ghanu Pur which had been acquired
during same time were valued uniformly at Rs. 40,000 per acre, and hence
same has to be taken as comparable units for the lands involved in the instant         E
appeals. Union of India filed these appeals challenging the judgment of High
Court

      Dismissing the appeals, the Court

      HELD I.I. The High court took a pragmatic approach in fixing the                 F
market value of the lands forming the subject matter of the acquisition
proceedings at a uniform rate. From the sketch plan of the area in question,
it appears that while the lands in question are situated in five different villages,
they can be consolidated into one single unit with little to choose between one
stretch of land and another. The entire area is in a stage of development and          G
the different villages are capable of being developed in the same manner as
the lands comprised in Kala Ghanu Pur where the market value of the
acquired lands was fixed at a uniform rate of Rs. 40,000/- per acre. The High
Court discarded the belting method of valuation having regard to the local
circumstances and features and no cogent ground has been made out to
                                       669                                             fl
    670                     SUPREME COURT REPORTS [2005) SUPP. 4 S.C.R.

A interfere with the same. (675-C-E]
          Union of India and Anr. v. Ram Phool and Anr. (2003) 10 SCC 167,
    referred to.

          1.2. In the absence of any contemporaneous document, the market value
B   of the acquired lands of village Kala Ghanu Pur which were acquired at the
    same time as the lands in the other five villages was correctly taken to be a
    comparative unit for determination of the market value of the lands forming
    the subject matter of the acquisition proceedings under consideration.
                                                                          (675-F(

C           Ranvir Singh and Anr. v. Union of India, (2005) 7 Scale 238, referred
    to.

       2. As far as the benefits under Section 23 (1-A) of the Act are
  concerned, the same will be confined to the lands comprised in village Kathania
D and Wadala Bhitewad only where the CoUector made his award after 30th April,
  1982. (675-G(

            CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 3343-3554 of
    1999.

            From the Judgment and Order dated 15.10.96 of the Punjab and Haryana
E High Court in L.P.A. Nos. 729/85, 242/86, 623/90, 684/85, 722-728, 730-736, 738-
    743, 758, 759, 762, 763, 764, 772, 902-907, 760, 685 and 744/85, R.F.A. Nos. 73/
    88, 103/89, 110-120,214,215,216,219-221,249-262,268,264,266,267,307-309,
    410, 411, 424, 430-437, 456, 539-543, 909, 911/88, 1372-1375/89, 1412-1417, 1419-
    1430/88, 1897/91, 2017, 1418/88, 1526/88, 2138 •. 2143, 2157, 2159-2164, 2166-
F   2110, 2112, 2174-2177, 2182, 2183, 2191, 2192/89, 2195/M/89, 2197-2231, 2233_
    2259/89, 84/89 and 1063 of 1988.
                                         WITH
          C.A. Nos. 2640-2642, 3309-3340, 3341-3342, 3555, 3556-3586/99, 5163/
    2002, 3009-3017, 3057-3059, 3152-3180, and 3060-3061 of2003.
G
         R.Mohan, Additional Solicitor General, Ms. Indra Sawhney, S.W.A. Qadri,
    Mrs. Anil Katiyar, M.P.S. Tomar, S.A. Mattoo, R. Nedumaran and B.V. Bairam
    Das for the Appellant.

            P.C. Jain, Neeraj Jain, Vimal Chandra S. Dave, Mrs. Neelam Kalsi,
H Sudarshan Goel, R.K. Joshi, P.N. Puri, Dinesh Verma and Ms. Suresh Kumar,
            U.0.1. v. HARINDER PAL SINGH [AL TAMAS KABIR. J.)                671
for A.P. Mohanty for the Respondents.                                               A
      The Judgment of the Court was delivered by

      ALTAMAS KABIR, J. Applications for substitution in Civil Appeal
Nos. 3010/03,3152-80/03 and in 3343-3554/99 are allowed.
                                                                                    B
     All these appeals relate to the acquisition of 3512.33 acres of land
comprised in five villages, namely, Hamidpur, Gumanpura, Khurmania, Kathania
and Wadala Bhitewad pursuant to several notifications dated 1st June, 1977,
22nd July, 1977, and 5th May, 1978, issued under Section 4 of the Land
Acquisition Act, 1894 (hereinafter referred to as 'the Act') for extension of the
Cantonment at Amritsar.                                                             C
      The Collector passed his award in respect of the acquired lands on
28.3.1978 after classifying the lands in question into four categories namely:

      (i) Chahi;
                                                                                    D
      (ii) Nehri;

      (iii) Barani;

      (iv) Gair Mumkin.
                                                                                    E
      In respect of each of the categories, different rates of compensation per
acre were computed in the manner following:

      (i) Chahi - Rs.16,500

      (ii) Nehri - Rs.16,500                                                        F
      (iii) Sarani - Rs. 12,000

      (iv) Gair Mumkin - Rs.5,000

      Various references were thereafter made to the District Court at the G
request of the aggrieved claimants against the said award of the Land
Acquisition Collector for enhanced compensation in respect of the acquired
lands at different rates between Rs. 50,000 to Rs.90,000 per acre. Following
the belting method, the learned Additional District Judge, Amritsar, fixed the
market value of lands forming part of the first belt at a uniform rate of
Rs.50,000 per acre, irrespective of the quality of the lands. Similarly, in respect H
    672                     SUPREME COURT REPORTS (2005] SUPP. 4 S.C.R.

A of the second belt, the market value of the lands was fixed at Rs.40,000 per
    acre, irrespective of the quality of the lands. In respect of the those claimants
    whose lands did not fall within the two belts, the compensation was enhanced
    and fixed at

          (i) Rs. 25,000 per acre for Chahi-Nehri lands
B
          (ii) Rs.18,000 per acre for Barani lands and

          (iii) Rs. 8000 per acre for Gair Mumkin lands.

           A batch of appeals was filed against the decision of the Additional
C   District Judge, Amritsar. In the R.F.As involving 721.3837 acres in Hamidpur,
    after taking into account the potentiality and the nature of the lands, including
    their proximity to G.T ..Road and other connecting roads and the other sale
    deeds filed before him, the learned single Judge of the Punjab and f'laryana
    High Court fixed the market value of the lands in question at a uniform rate
D   of Rs.16,500 per acre. The same rate was fixedfor the lands in Ghumanpura.
    LP As were filed against the order of the learned single Judge in respect of
    village Hamidpur and Ghumanpura. The other RF As in respect of the lands
    comprised in village Kathania and Wadala Bhitewad were pending
    consideration when the LPAs were taken up for consideration by the Division
    Bench. Considering the fact that the appeals all related to more or less
E   simultaneous acquisition of the lands comprised in the five villages for extension
    of the Amritsar Cantonment, the Division Bench took up the RF As for
    consideration along with the LPAs and disposed of all the matters by its
    findings and judgment in the leading case being LPA No. 729/85.

          While considering the matter. the Division Bench concluded that the
F. lands comprised in the five villages were more or less of similar nature and
    character and well connected by roads and that there was a good deal of
    potentiality for development of the locality. It was observed that the areas in
    question contained houses and factories and were also close to the Guru
    Nanak Dev University. The Division Bench also took particular note of the
G   fact that the lands comprised in the adjoining village of Kala Ghanu Pur, which
    had also been acquired, under notifications dated Ist June, 1977 and I0th
    June, 1977, were valued uniformly at Rs.40,000 per acre. The Division Bench
    observed that the market value of the acquired lands was being determined
    keeping in view their potentiality for industrialization or urbanization. It was
    observed further that it had been fairly conceded by counsel for the parties
H   that the market value of the nehri lands in the same locality is the same
            U.0.1. v. HARINDER PAL SINGH [AL TAMAS KABIR, J.]                673

  irrespective of whether they were nearer or farther away from the town. On         A
 such consideration, the Division Bench in keeping with the market value of
 the lands comprised in village Kala Ghanu Pur, was of the view that the market
 value of the lands under acquisition in the five villages should also be fixed
 at a uniform rate of Rs. 40,000 per acre, irrespective of their nature or quality
 and whether the same was situated nearer to the road or at some distance
 therefrom.                                                                          B
       ·In keeping with the aforesaid determination, the awards passed by the
 learned Reference Court were all mo.dified to the extent that the claimants of
 the five villages would be entitled. to compensation at the rate of Rs. 40,000,
 per acre irrespective of the nature of the land. The claimants would also be        C
 entitled to statutory interest and solatium · at the rate of 30 per cent. In
 particular; the daimants of village Kathania and Wadala Bhitewad would also
 be entitled to the benefit of Section 23 (1-A) of the Act.

       As indicated herein before, by virtue of the said judgment delivered in
 LPA No.729/85, the Division Bench disposed of all the pending appeals,              D
 including the Rf As concerning the lands comprised in Kathania and Wadala
 Bhitewad.

       All these appeals have been preferred by the Union of India against the
said judgment and order of the Division Bench of the High Court of Punjab
and Haryana.                                                                         E
      Appearing in support of the appeals, Mr. R. Mohan, learned Additional
Solicitor General, firstly urged that the Division Bench of the Punjab and
Haryana High Court had erred in abandoning the belting system and taking
recourse to a uniform rate for all the lands comprised in the five different
villages on account of the fact that all the lands were not similar in nature F
and did not enjoy (he same privileges.

        It was also contended by Mr. Mohan that the market value of the lands
 comprised in village Kala Ghanu Pur had been wrongly taken as a yardstick
.for the lands involving in the instant appeals on account of the fact that the G
 lands comprised in village Kala Ghanu Pur and those in the five villages
 involved in the instant acquisition proceedings could not be taken to be
 comparable units. According to Mr. Mohan, while village Kala Ghanu Pur was
 situated on the road between G.T. Road and the bye pass road, the situation
 of the lands comprised in the other villages was not similar and they did not
 enjoy the same advantages. Furthermore, village Kala Ghanu Pur was closer H
    674                    SUPREME COURT REPORTS [2005] SUPP. 4 S.C.R.

A to Amritsar and was in the immediate vicinity of Guru Nanak Dev University
    and the Khalsa College at Amritsar whereas Hamidpur and Kathania were
    situated at some distance away from the city and the main roads.

          Mr. Mohan lastly contended that the lands comprised in village Kala
    Ghanu Pur were too little to be used as a comparative unit in respect of a
B   larger area of land which had been acquired having particular regard to their
    location as well as potentiality for development. In support of the said
    submission, Mr. Mohan firstly relied on a decision of this Court in the case
    of Union ofIndia andAnr. v. Ram Phool and Anr., (2003] 10 SCC 167 wherein
    the aforesaid principle was noticed and it was observed that it had been held
C   in a catena of decisions of this Court that the sale price in respect of a small
    bit of transaction would not be the determinative factor for deciding the
    market value of a vast stretch of land.

        Reference was also made to another decision of this Court in the case
  of Ranvir Singh and Anr. v. Union of India., (2005) 7 Scale 238 in which the
D decision in Ram Phoo/'s case (supra) was noticed.
        Mr. Mohan urged that having regard to the aforesaid principle, the
  impugned decision of the Division Bench of the Punjab and Haryana High
  Court was not capable of being sustained and in the absence of any proper
  comparable unit the decision of the learned single Judge was liable to be
E restored.
        Appearing in support of the claimants, Mr. P.C. Jain, senior advocate,
  on the other hand, contended that the decision of the Division Bench of the
  Punjab and Haryana High Court impugned in these appeals was just and
  based on the materials available, namely, the rate of compensation fixed in
F respect of the lands comprising village Kala Ghanu Pura which were adjacent
  to the lands comprising the five villages forming the subject matter of the
  present appeals. Mr. Jain contended that from the inspection reports it would
  be amply clear that all the lands involved in the acquisition proceedings had
  similar potential for commercial exploitation and could be consolidated into a
G single unit where the process of development and improvement had already
  commenced. Mr. Jain pointed out that there were several mills and factories
  along with residential accommodation which had come up in the area and
  there was little to differentiate between the lands comprised in either village
  Kathania or village Hamidpura and those comprised in the adjacent village of
  Kala Ghanu Pur they were equally well connected by arterial roads. It was
H urged that since there was little to differentiate between the lands comprised
            U.0.1. v. HARINDER PAL SINGH [AL TAMAS KABIR, J.]               675
in village Kala Ghanu Pur and those involved in the present acquisition           A
proceedings, the judgments referred to and relied upon by Mr. Mohan would
be of little or no relevance. It was urged that, in any event, the lands
comprised in village Kala Ghanu Pur could not be said to be a small unit since
it comprised an area of 208.2625 acres.

      Mr. Jain contended that the appeals were misconceived and were liable       B
to be dismissed.

       We have carefully considered the submissions made on behalf of the
respective parties and we see no justification to interfere with the decision
of the Division Bench of the Punjab and Haryana High Court which, in our C
view, took a pragmatic approach in fixing the market value of the lands
forming the subject matter of the acquisition proceedings at a uniform rate.
From the sketch plan of the area in question, it appears to us that while the
lands in question are situated in five different villages, they can be consolidated
into 6ne single unit with little to choose between one stretch of land and
another. The entire area is in a stage of development and the different villages D
are capable of being developed in the same manner as the lands comprised
in Kala Ghanu Pur where the market value of the acquired lands was fixed at
a uniform rate of Rs.40,000/- per acre. The Division Bench of the Punjab and
Haryana High Court discarded the belting method of valuation having regard
to the local circumstances and features and np cogent ground has been made
out to interfere with the same.                                                     E
      In our view, in the absence of any contemporaneous document, the
market value of the acquired lands of village Kala Ghanu Pur which were
acquired at the same time as the lands in the other five villages was correctly
taken to be a comparative unit for determination of the market value of the       F
lands comprising the lands forming the subject matter of the acquisition
proceedings under consideration. No interference is, therefore, called for in
these appeals and they are all dismissed without any order as to costs.

       Although, it has been duly mentioned in the judgment under appeal, we
reiterate that as far as the benefits under Section 23 (I-A) of the Act are       G
concerned, the same will be confined to the lands comprised in village Kathania
and Wadala Bhitewad only where the Collector made his award after 30th
April, 1982.

D.G.                                                       Appeals dismissed.
                                                                                  H