Whether a compensation rate declared "not a precedent" can still serve as the base for later enhancement?
Coram: Justice M.R. Shah · Justice C.T. Ravikumar
Land Acquisition — Land Acquisition Act, 1894 — Enhancement of compensation — Earlier compensation rate expressly declared "not a precedent" used as base for a later notification. Held: A compensation rate fixed by this Court for an earlier notification, though expressly directed not to be treated as a precedent, could still be taken as the base for a later notification concerning the same village, since the sale instances on which that rate rested had themselves been considered on merits; however, because both notifications concerned the same village and period, a full 12% cumulative annual increase was not safe to grant, and the enhancement was moderated to 10%. The compensation for the 2010 notification was accordingly fixed at Rs. 2,87,98,000/- per acre and the appeals were partly allowed, without costs. (¶6, 7, 8)
Whether a compensation rate declared "not a precedent" can still serve as the base for later enhancement?
Yes. Though the earlier rate was expressly directed not to be treated as a precedent, it could still be taken as the base for a later notification for the same village since the sale instances underlying it had been considered on merits; the cumulative annual increase was nonetheless moderated from 12% to 10% given the closeness of the two notifications.
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Feeling aggrieved and dissatisfied with the impugned common judgment and order dated 18.10.2019 passed by the High Court of Punjab and Haryana at Chandigarh in Regular First Appeal (RFA) No. 1100/2013 and other allied first appeals, by which, the High Court has allowed the said first appeals in part preferred by the original land owners and has enhanced the amount of compensation for the lands acquired at Rs. 2,98,54,720/ per acre with all 1 other statutory benefits, the State of Haryana has preferred the present appeals.
The facts leading to the present appeals in a nutshell are as under:
2.1 That approximately 58 acres of large chunk of lands situated at village Kherki, Majra came to be acquired for the public purpose under the provisions of the Land Acquisition Act, 1894. The land acquisition officer declared the awards. At the instance of the original land owners, references under Section 18 of the Act, 1894 were made. The reference court enhanced the compensation for notification dated 13.01.2010 to Rs. 1,56,24,000/ per acre from Rs. 60 lakhs per acre as awarded by the land acquisition officer. The appeals preferred by the State against the judgment and award passed by the reference court determining the compensation at Rs. 1,56,24,000/ came to be dismissed. However, by the impugned judgment and order taking into consideration the amount of compensation enhanced by the High Court which came to be modified by this Court to Rs. 2,38,00,000/ per acre with respect to the lands acquired in the month of January, 2008 and granting 12% cumulative increase, the land owners and determined and awarded the compensation at Rs. 2,98,54,720/ per acre.
2.2 Dissatisfied with the impugned judgment and order passed by the High Court determining and awarding the compensation for the lands acquired vide notification dated 13.01.2010 at Rs. 2,98,54,720/ per acre, the State of Haryana has preferred the present appeals.
We have heard Shri Nikhil Goel, learned AAG, appearing on behalf of the State of Haryana and learned counsel appearing on behalf of the respective original land owners.
Shri Nikhil Goel, learned AAG, appearing on behalf of the State has vehemently submitted that while determining the compensation at Rs. 2,98,54,720/ per acre for the lands acquired vide notification dated 13.01.2010, the High Court has materially erred in taking into consideration and/or relying upon the judgment of this Court passed in Civil Appeal Nos. 1181411864 of 2017 [State of Haryana Vs. Ram Chander (2017 SCC OnLine SC 1869)] with respect to the lands acquired vide notification issued in the month of January, 2008. 3
4.1 It is submitted that in the judgment and order passed by this Court in Civil Appeal Nos. 1181411864 of 2017, this Court has specifically observed and held that the determination of compensation vide the said judgment at Rs. 2,38,00,000/ per acre shall not be treated as a precedent in any other case. It is submitted that therefore, while passing the impugned judgment and order the High Court has materially erred in taking into consideration the amount awarded by this Court vide judgment and order passed in Civil Appeal Nos. 1181411864 of 2017 at Rs. 2,38,00,000/.
4.2 It is further submitted by Shri Nikhil Goel, learned AAG, appearing on behalf of the State that in the present case the prices of the land were decreasing which was taken note of by this Court.
4.3 It is further submitted that even otherwise considering the fact that with respect to the very village, lands came to be acquired from 2008 onwards and therefore, the prices of the lands were artificially increased. It is submitted that therefore, the High Court has materially erred in giving 4 12% rise on Rs. 2,38,00,000/ per acre which has been awarded for notification dated 25.01.2008.
4.4 Making the above submissions and relying upon the above decision, it is prayed to allow the present appeals.
While opposing the present appeals, learned counsel appearing on behalf of the land owners has submitted that once the appeals preferred by the State were dismissed and the impugned common judgment and order was passed in the appeals preferred by the land owners, it is not open for the State now to challenge the impugned common judgment and order passed by the High Court.
5.1 It is further submitted that even otherwise considering the sale instances produced on record right from 09.03.2007 till 31.03.2008 there was increase in prices and therefore, the High Court has not committed any error in granting the enhancement of 12% on Rs. 2,38,00,000/ per acre. It is submitted that as such no concrete evidence has been laid down or no contrary sale instance were placed on record by the acquiring body showing the decrease in the market value between 2008 and 2010. 5
5.2 Making the above submissions and relying upon the recent decision of this Court in the case of Ramrao Shankar Tapse Vs. Maharashtra Industrial Development Corporation and Ors.; (2022) 7 SCC 563, by which, it was observed that a cumulative increase of 10 to 15% per year in the market value of land may be accepted, it is prayed to dismiss the present appeals.
We have heard learned counsel appearing on behalf of the respective parties at length. We have gone through the impugned common judgment and order passed by the High Court and we have also gone through and considered the earlier decision of this Court in the case of Civil Appeal Nos. 1181411864 of 2017 by which with respect to the lands acquired vide notification dated 25.01.2008, this Court determined the compensation at Rs. 2,38,00,000/ per acre. In the said judgment and order, this Court has specifically observed that the said judgment may not be treated as a precedent. However, it is required to be noted that even on merits also, this Court considered and accepted the sale instances produced on behalf of the land owners ranging between 2007 and 2008. Therefore, as 6 such determination of the compensation at Rs. 2,38,00,000/ per acre with respect to the land acquired vide notification issued on 25.01.2008 can be said to be the base and considering the time gap between 2008 notification and 2010 notification, a suitable enhancement ranging between 8% to 15 % is given which is held to be permissible as per the catena of decisions of this Court right from the decision in the case of Pehlad Ram Vs. HUDA; (2014) 14 SCC 778 up to the recent decision of this Court in the case of Ramrao Shankar Tapase (supra). However, at the same time considering the fact that in the present case with respect to the very village, the acquisition proceedings came to be initiated in the month of January, 2008, it will not be safe and/or prudent to grant the cumulative increase of 12%. In the facts and circumstances of the case and even considering the sale instances produced on record, we are of the opinion that if instead of 12% enhancement on Rs. 2,38,00,000/, 10% increase is accepted it can be said to be a just compensation and it may meet the ends of justice. 7
In that view of the matter, the market value of the land in question for the lands acquired vide notification dated 13.01.2010 will be at Rs. 2,87,98,000/ per acre.
Resultantly, the impugned common judgment and order passed by the High Court is required to be modified to the aforesaid extent by awarding the compensation at Rs. 2,87,98,000/ per acre. Present appeals are partly allowed to the aforesaid extent and it is held that the original land owners shall be entitled to the compensation at Rs. 2,87,98,000/ per acre with all other statutory benefits which may be available under the Land Acquisition Act, 1894. The appellant – State of Haryana is hereby directed to deposit and/or pay the compensation to the original land owner(s) at the market value of Rs. 2,87,98,000/ along with all other statutory benefits within a period of six weeks from today after deducting whatever amount is already paid. Present appeals are partly allowed to the aforesaid extent. No costs. ………………………………….J. [M.R. SHAH] NEW DELHI; ………………………………….J. FEBRUARY 10, 2023 [C.T. RAVIKUMAR] 8
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